How to collect the tax of the parent company and the branch company?

The parent company pays enterprise income tax, including branches. Because the branch does not have the legal person qualification and does not conduct independent accounting, the corporate income tax is collected and remitted by the head office.

1. Article 14 of the Company Law stipulates that:

"The subsidiary has the qualification of a legal person and independently bears civil liability according to law; The branch does not have legal person status, and its civil liability shall be borne by the company. " If an enterprise establishes a branch, so that it does not have the qualification of a legal person and does not conduct independent accounting, the head office may pay enterprise income tax. In this way, the head office can adjust the profit and loss and reasonably reduce the burden of enterprise income tax.

A branch is not an independent legal person, so independent accounting is not required, and income tax can be consolidated and settled in the head office.

Two. Article 50 of the Enterprise Income Tax Law stipulates that:

When a resident enterprise establishes a business organization without legal person status in China, it shall collect and calculate the enterprise income tax. Since 2008, China has implemented the enterprise income tax system, emphasizing that corporate enterprises or organizations are taxpayers of enterprise income tax, and non-independent accounting branches will automatically collect and pay enterprise income tax at the company headquarters.