1, and the profits of the branch are merged into the head office for unified tax payment;
2. The losses of branches can be deducted from the taxable income of the head office;
3. The payment principle of enterprise income tax;
4. The head office and secondary branches share the tax payment;
5. Income tax includes prepaid tax and final settlement tax;
6. 50% between branches and 50% between head offices;
7, 25% on-site treasury or returned, 25% paid into the central treasury or returned;
8. If the unincorporated branch cannot provide proof, it shall be regarded as an independent taxpayer.
Calculation method of enterprise income tax:
1. Determination of taxable income: The taxable income of enterprise income tax refers to the balance after deducting tax-free income, tax-free income, income deduction items and allowable deduction items in a tax year;
2. Tax rate application: The tax rate of enterprise income tax may be different according to the types of enterprises and industries. Under normal circumstances, the statutory corporate income tax rate is 25%;
3. Pre-tax deduction items: when calculating taxable income, enterprises can deduct various expenses that meet the requirements, such as research and development expenses, advertising expenses, business promotion expenses, etc.
4. Preferential tax reduction and exemption: For qualified enterprises, the state provides a series of preferential tax policies, such as high-tech enterprises collecting enterprise income tax at a reduced rate of 15%;
5. Prepayment and annual declaration: In each tax year, the enterprise shall prepay the enterprise income tax quarterly or monthly, and make final settlement after the end of the year to determine the actual tax payable.
To sum up, as a subordinate taxpayer, the profits of the branch need to be merged into the head office to pay enterprise income tax, and the losses can be used to offset the taxes of the head office. Tax payment follows the established principles, and the head office and branches need to share the tax, including prepayment and settlement. Branches and head offices bear half of the tax revenue, part of which is paid locally and part of which is turned over to the central government. An unincorporated branch that cannot provide proof will be regarded as an independent taxpayer.
Legal basis:
Company Law of the People's Republic of China
Article 14
Companies can set up branches. 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.