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Announcement of the State Administration of Taxation on Matters Relating to the Annual Settlement of Enterprise Income Tax

SME Taxes in China

Abstract: If a taxpayer’s prepayment of enterprise income tax exceeds the tax payable in one tax year of settlement, the taxpayer shall apply for a tax refund in a timely manner and the competent taxation authority shall promptly handle it in accordance with the relevant provisions and shall not offset its enterprise income tax payable in the following year.

Announcement of the State Administration of Taxation No. 34 of 31st December 2021

With the purpose of implementing the Enterprise Income Tax Law of the People’s Republic of China and relevant tax policies, optimizing tax services, and streamlining tax filing, the following announcement is made on matters concerning the settlement of enterprise income tax.

1. Revision of certain forms and instructions of the Annual Enterprise Income Tax Return of the People’s Republic of China (Type A, 2017 Version), are specified as follows: Revision of the form styles and filling-in instructions of the Basic Information Form for the Filing of Annual Enterprise Income Tax Return (A000000), Annual Tax Return of Enterprise Income Tax of the People’s Republic of China (Type A) (A100000), the Detailed Statement on Asset Depreciation, Amortization and Tax Adjustments (A105080), the Detailed Statement on preferences of Tax Exemption, Reduced Taxable Income and Weighted Deduction (A107010), the Detailed Statement on Taxable Income Reduction and Exemption Preferences (A107020), the Detailed Statement on Income Tax Reduction and Exemption Preferences (A107040), the Preferences for Software and Integrated Circuit Enterprises and the Detailed Statement Thereon (A107042), the Detailed Statement on Overseas Income after Adjustments to Taxes on Overseas Income (A108010), and “Detailed Statement of Annual Apportionment of Enterprise Income Tax for Enterprises with Inter-regional Operation in Summary Taxation” (A109000); plus revision of the filling-in instructions for “Detailed Statement on the preferences of Additional Deduction of Research and Development Expenses” (A107012).

2. If a taxpayer’s prepayment of enterprise income tax exceeds the tax payable in one tax year of settlement, the taxpayer shall apply for a tax refund in a timely manner, and the competent taxation authority shall promptly handle it in accordance with the relevant provisions and shall not offset its enterprise income tax payable in the following year.

3. This announcement shall be applied to the enterprise income tax settlement for the year 2021 and subsequent years. The hereafter forms and instructions for completing the tax return are simultaneously repealed: Announcement of the State Administration of Taxation on Issuing the Annual Enterprise Income Tax Return of the PRC (Type A, 2017 Version) (No. 54 of 2017), Announcement of the State Administration of Taxation on Revising the Forms of and the Instructions for Completing Certain Statements included in the  Annual Enterprise Income Tax Return of the PRC (Type A, 2017 Version) (No. 57 of 2018),  Announcement of the State Administration of Taxation on Issues Concerning the Revising the Annual Enterprise Income Tax Return (No. 41 of 2019), and Announcement of the State Administration of Taxation on Revising the Annual Enterprise Income Tax Return (No. 24 of 2020) . Article 11 of the Notice of the State Administration of Taxation on Issuing the Measures for the Administration of Final Settlement and Payment of Enterprise Income Tax (No. 79[2009] of the State Administration of Taxation, amended by the Announcement of the State Administration of Taxation No. 31 of 2018) “or offset the enterprise income tax payable for the following year upon the consent of the taxpayer, ” and the Announcement of the State Administration of Taxation on Issuing the Measures for the Consolidated Collection of Enterprise Income Tax on Trans-regional Business Operations (No. 57 of 2012, amended by No. 31 of 2018), Article 10 “or offset the total enterprise income tax payable for the following year, respectively, with the consent by the headquarters and branches” shall be repealed at the same time.