Policy basis:
Dividends, bonuses and other equity investment income between eligible resident enterprises mentioned in Item (2) of Article 26 of the Enterprise Income Tax Law refer to the investment income obtained by resident enterprises directly investing in other resident enterprises.
If the subsidiary has paid enterprise income tax before distribution, the parent company need not pay it again. However, if the subsidiary enjoys the preferential policy of income tax reduction and exemption, but the parent company does not, it is necessary to make up the difference in the tax rate of the parent company when receiving the investment income.
Dividends, bonuses and other equity investment income between qualified resident enterprises; Article 17 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the income from equity investment, such as dividends and bonuses, mentioned in Item (4) of Article 6 of the Enterprise Income Tax Law refers to the income obtained by an enterprise from the invested entity due to equity investment. Dividends, bonuses and other equity investment income shall be realized according to the date when the investee makes the profit distribution decision, unless otherwise stipulated by the competent financial and tax authorities of the State Council.
Accounting treatment of cancellation of parent company by extended information subsidiary;
head office
Borrow: bank deposit (recovery of investment funds)
Loan: Long-term investment (based on net book value)
Loan or loan: investment income
1. If an enterprise loses its legal person status after ending the old accounts, it shall debit the balance of all liabilities and owners' equity accounts and credit the balance of all assets accounts when ending the old accounts. A company that cancels liquidation shall, after liquidation and cancellation of registration, simultaneously credit the balance of all assets accounts and debit the balance of all liabilities and owners' equity accounts, so as to cancel all accounts of the company. "
2. According to Article 13 of the Notice of the Ministry of Finance and the National Archives Bureau on Printing and Distributing the Measures for the Administration of Accounting Archives (Zi [1998] No.32, 1998-8-2 1), "If the unit is terminated due to cancellation, dissolution, bankruptcy or other reasons, it shall be handled.
Baidu Encyclopedia-People's Republic of China (PRC) Enterprise Income Tax Law