Legal analysis: No, the profits handed over by the subsidiary to the parent company do not need to be taxed, because the profits distributed by the subsidiary belong to after-tax profits, which are redistributed after tax and do not need to be taxed repeatedly. A subsidiary is an independent legal person with its own independent name, articles of association and organizational structure. Conduct activities in its own name, and the creditor's rights and debts incurred in the course of operation shall be borne independently by itself. The parent company's control over its subsidiaries must meet certain legal conditions. Generally, the parent company does not directly control its subsidiaries, but more indirectly controls them, that is, it affects the production and operation decisions of subsidiaries by appointing and dismissing board members and making investment decisions. Taxpayers engaged in production and operation, carrying out independent economic accounting and approved by the administrative department for industry and commerce shall apply to the local tax authorities for tax registration within 30 days from the date of obtaining the business license. Other units and individuals with tax obligations, except those that do not need to go through tax registration according to the provisions of the tax authorities, shall go through tax registration with the local tax authorities within 30 days from the date when they become legal taxpayers according to the provisions of tax laws and regulations.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.