1, branches are generally easy to operate, and financial accounting system requirements are relatively simple;
2. The cost borne by the branch company may be less than that of the subsidiary company;
3. If the branch is not an independent legal person, the turnover tax shall be paid at the place where it is located, and the profits shall be collected and paid by the head office. In the initial stage of operation, branches often suffer losses, but their losses can offset the profits of the head office and reduce the tax burden;
4. The profits delivered by branches to the headquarters are usually not subject to withholding tax;
5. The transfer of funds between the branch and the head office does not involve the change of ownership, so there is no need to pay taxes.
Disadvantages of registered branches:
1. Most branches don't have too many assets themselves, which is easy to generate high profits, which is not conducive to the overall tax planning of enterprises.
2. Branches cannot enjoy preferential tax policies for newly established enterprises.
3. Because the branch does not have independent legal personality, it is not conducive to independent profit distribution.
4. As the head office and branches belong to the same legal subject, the legal risks they bring are mutual.