Application Requirements
Where there is an indirect transfer of Chinese taxable assets by non-resident enterprises, either party to the transaction or the PRC enterprise whose shares are to be indirectly transferred may report the transfer to the in-charge tax authority.
Legal Basis
Article 9 and Article 10 of the State Taxation Administration (STA) Public Notice on Several Issues Concerning the Enterprise Income Tax on Indirect Asset Transfer by Non-Resident Enterprises (STA Public Notice [2015] No. 7)
Materials Needed
Notes:
1.Taxpayers are responsible for the authenticity and legality of the materials submitted.
2.Taxpayers are required to submit paper documents when they go to the tax service hall to handle their tax affairs, or submit electronic documents according to the requirements of the online system if they handle their tax affairs online or through mobile terminals.
3.All supporting documents submitted by taxpayers, if copies, must be marked with "Consistent with the original," signed and stamped. If a Chinese translation is submitted, it should be marked with "This translation is consistent with the original text," signed and stamped.
4.Taxpayers may use e-signatures that meet the requirements of the Electronic Signature Law of the People's Republic of China, which have the same legal effect as handwritten signatures or seals.
Service Channels
1. Tax Service Halls
"City-wide Universal Processing" services will be provided at all tax service halls except for the Third Tax Bureau of Shenzhen Municipality, the Third Tax Service Hall, Bao'an District.
2. No self-service tax terminalis available.
3. Online service
No E-tax bureau, Mobile terminal or WeChat (tax bureau) access is available.
Processing Authority
The competent tax authorities
Processing Time
1. Time limit for taxpayers
N/A.
2. Time limit for tax authorities
The tax authority shall complete the procedure immediately after acceptance.
Tel.
Please refer to the tax service map for contact numbers of each tax service hall.
Processing Procedure
Processing Result
Tax authorities will give feedback on the processing result.
Notices for Taxpayers
1. The tax authorities provide services that require at most one visit. Taxpayers need to visit the tax authorities only once at most, provided that the submitted materials are complete and meet the legal requirements for acceptance.
2. The following criteria shall be used to determine the tax authority in charge of the underlying matter:
(1) If the taxable assets being transferred are attributable to an establishment or place in China, the tax authority in charge of such establishment or place shall be the tax authority in charge.
(2) Apart from the circumstance described in Item (1), if the assets being transferred are real property in China, the tax authority in charge of the deducting and withholding obligator or at the place of the real property shall be the tax authority in charge.
(3) Apart from the circumstance described in Item (1) and (2), if the assets being transferred are equity interest investments by Chinese resident enterprises, the tax authority in charge of thewithholding agent or the enterprise being transferred shall be the tax authority in charge.
3. If the equity transferor leads to the indirect transfer of more than two Chinese taxable assets through the direct transfer of equity in the same foreign enterprise, involving more than two competent tax authorities, both parties to the transaction of the indirect transfer of Chinese taxable assets or the PRC enterprise whose shares are to be indirectly transferred may choose which in-charge tax authority to submit relevant reporting materials to, and such competent tax authority shall be responsible for the relevant examination work as prescribed.
4. If the indirect transfer is re-characterized by the tax authorities and confirmed as a direct transfer of equity or other assets of a PRC resident enterprise, the withholding agent and non-resident taxpayer shall withhold or declare the enterprise income tax in accordance with the relevant provisions.
5. If an equity transferor causes indirect transfer of more than two Chinese taxable assets through direct transfer of equity in the same foreign enterprise, which is taxable in accordance with the relevant regulations and involves more than two competent tax authorities, the equity transferor shall declare and pay enterprise income tax at each of the respective competent tax authorities involved.
Fees
Free of charge
Application Forms
N/A.
Instructions for Fillingout Forms
N/A.