No taxes.
Consolidated statements only reflect the overall operation and financial situation of the group company, not for tax purposes.
Tax provisions on dividends obtained by resident enterprises
The Notice of State Taxation Administration of The People's Republic of China on Some Income Tax Issues Concerning Enterprise Equity Investment Business stipulates that if the income tax rate applicable to an investor enterprise is higher than that applicable to the invested enterprise, the investment income obtained shall be written down as pre-tax income according to regulations, incorporated into the taxable income of the investment enterprise, and the enterprise income tax shall be paid back according to law.
Notice of State Taxation Administration of The People's Republic of China on Some Income Tax Issues Concerning Enterprise Equity Investment Business (Guo Shui Fa [2000] No.65438 +0 18) If the income tax rate applicable to the investor enterprise is higher than the income tax rate applicable to the invested enterprise, the investment income obtained shall be restored as pre-tax income according to regulations, incorporated into the taxable income of the investment enterprise, and enterprise income tax shall be paid according to law.
At the same time, it is emphasized that, unless otherwise stipulated, no matter what accounting method is adopted for investment in enterprise accounting, the investor enterprise should confirm the realization of investment income when actually distributing profits in the accounting of the invested enterprise.
The tax treatment of profits of wholly-owned subsidiaries shall be implemented in accordance with the above provisions.
Article 26 of the new enterprise income tax law, which came into effect on June 5438+1 October1,2008, makes it clear that dividends, bonuses and other equity investment income between qualified resident enterprises are tax-free income, and Article 83 of the Regulations further explains this. The so-called dividend, bonus and other equity investment income between qualified resident enterprises refers to the investment income obtained by resident enterprises directly investing in other resident enterprises, excluding the continuous holding of shares publicly issued and listed by resident enterprises.
Does the subsidiary pay dividends? Does the parent company have to pay taxes? In addition to the business dealings between the parent company and its subsidiaries, when the subsidiaries pay dividends, the income of the parent company is a large part. A series of accounting treatments that the parent company needs to carry out can refer to our introduction in the above article. For more exciting information, please refer to our article.