How to make the final settlement of Enterprise Income Tax (EIT)?  Non-resident enterprises, please check this guide!

Which non-resident enterprises need to make the final settlement?

How to do it?

When to do it?

What document do you need to submit?

Take a look at this guide!

Who Must File

Non-resident enterprises (hereinafter referred to as enterprises) established in accordance with the laws of foreign countries (regions) and whose actual management institutions are not located in China but have set up establishments or places in China shall, regardless of profits or losses, participate in the filings of returns of the enterprise income tax on a consolidated basis in accordance with the provisions of the Enterprise Income Tax Law and the Administrative Measures for the Settlement and Payment of EIT on Non-resident Enterprises.

When to File

1. Enterprises shall submit annual enterprise income tax returns to the tax authority and settle the tax remittance and refunds before May 31,2021.

2. If an enterprise terminates its business activities in the middle of the year, it shall, within 60 days from the date of termination of its actual operation, file a current enterprise income tax return to the tax authority for settlement of the current period.

Filing Requirements

I． When filing annual income tax returns, enterprises shall truthfully fill in and submit the following forms and documents：

1. 《Non-Resident EIT Annual Return of the People’s Republic of China (2019 Version)）》and the attachments.

2. Annual financial accounting reports or financial statements.

3. Enterprise Annual Reporting Forms for Related Party Transactions of the People’s Republic of China (2016 Version)》.

4. Other relevant information that should be reported as stipulated by the taxation authorities. For example, taxpayers shall independently judge whether they are eligible for and need to enjoy treaty benefits, submit 《Information Reporting Form for Non-resident Taxpayers Claiming Treaty Benefit》.

II． The peak period of tax affairs for the whole year is coming, in order to save your time, taxpayers are recommended to use more electronic filing ways, run less on-site filing and finish filing as early as possible to avoid any kind of congestion.

III． Enterprises entrusting intermediaries to act as agents for annual enterprise income tax declaration should attach the original letter of authorization signed by the principal.

IV． After filing the annual income tax return, if an enterprise is required to supplement or refund the income tax after examination by the competent tax authority, it should pay the tax into the bank according to the prescribed time limit after receiving the 《Notification on Final Settlement of Income Tax-Involved Matters for Non-Resident Enterprises》from the competent tax authority, or go through the tax refund procedures as required by the competent tax authority .

V． If an enterprise finds that there is an error in the 2020 income tax return within the income tax remittance period, it shall reapply for the annual income tax return to the competent tax authority within five months from the end of the year.