Laws of the People's Republic of China

State Administration of Taxation

Circular of the State Administration of Taxation on Printing and Distributing the Form for the Declaration of Income Tax of the Foreign Investment Enterprises and Foreign Enterprises

GuoShuiHan [2004] No. 54

January 12th, 2004

The administrations of state taxes of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning, the Shenzhen Municipal Administration of Local Taxes, and Yangzhou Taxation Institute:

With a view to bringing the income tax return for foreign related enterprises in line with the new Enterprise Accounting System, and being convenient for the foreign related enterprises to fill out, as well as reducing the cost for their observance of tax law, the State Administration of Taxation has hereby made proper revision on the tax return, which is established on the basis of the old enterprise accounting system after widely soliciting the opinions of both tax collectors and tax payers, and print and distribute it to you the revised Income Tax Return for Enterprises with Foreign Investment and Foreign Enterprises (hereinafter referred to as the New Tax Return), with the following Circular concerning the relevant issues:

I.

Foreign related enterprises shall begin to use the New Tax Return from the time when they make declarations on the balance of enterprise income taxes of the year 2003, and the Circular of the State Administration of Taxation on Printing and Distributing the Newly Revised Income Tax Return of Foreign Investment Enterprises and Foreign Enterprises (No.200 [2000] of the State Administration of Taxation) shall be repealed simultaneously.

II.

The New Tax Return shall still be classified into two categories, namely Class A and Class B, according to their methods of levy. Where a foreign related enterprise is subject to two kinds of taxation rates at the same time, and needs to fill out two sets of Class A tax returns separately, it shall differentiate them by adding "-1"and "-2" separately after the 15 digits of tax file numbers; if it needs to fill out Class A and Class B tax returns at the same time, it shall differentiate them by adding "£­A" and "£­B" after the 15 digits of tax file numbers.

III.

The Tax Return for Settlement of Income of Enterprises with Foreign Investment and the Withholding Income Tax Returns as prescribed in the Circular of the State Administration of Taxation on Printing and Distributing the Income Tax Return for Enterprises with Foreign Investment and Foreign Enterprises (GuoShuiHan [1992] No. 215) will be used continually.

IV.

The New Tax Return shall be printed by the tax authorities of all provinces (including cities under separate State planning) in accordance with the format of the form as formulated by the State General Administration of Taxation.

V.

All regions shall strengthen administration on the printing and distributing and use of the New Tax Return, and reflect in time the issues existing in the enforcement as well as the opinions of the two parties of tax collectors and taxpayers to the State Administration of Taxation (the International Taxation Department).

Annex:

I. Annual Income Tax Return for Enterprises with Foreign Investment and Foreign Enterprises (Class A) (Paper size: A3) (Omitted)

II. Quarterly Income Tax Return for Enterprises with Foreign Investment and Foreign Enterprises (Class A) (AA1) (Paper size: A3) (Omitted)

III. Annual Income Tax Return for Enterprises with Foreign Investment and Foreign Enterprises (Class B)(Paper size: A3) (Omitted)

IV. Quarterly Income Tax Return for Enterprises with Foreign Investment and Foreign Enterprises (Class B) (BB1) (Paper size: A3) (Omitted)