State Administration of Taxation, Circular on the Regulation of the Scope of Consolidated Enterprise Income Tax Payment

Issued: January 17 2006

Main contents: The following enterprises may, in accordance with provisions, apply for consolidated tax payment: (1) the 120 large-scale pilot enterprise groups determined by the State Council; (2) enterprise groups approved by the State Council on which pilot enterprise group policy and consolidated tax policy are imposed; (3) railway operations, civil aviation transport, postal service, telecommunications enterprises and financial and insurance enterprises (including such non-bank financial institutions as securities enterprises) specified in the PRC Tentative Regulations for Enterprise Income Tax and its implementing rules; (4) pilot enterprise groups under the cultural system reform, and (5) enterprises existing as enterprise groups after the reorganization and restructuring of enterprises that consolidate their tax payments (Article 2). Branches and sub-branches that do not conduct independent accounting shall, in accordance with the PRC Tentative Regulations for Enterprise Income Tax and its implementing rules, centrally pay taxes by the place where accounting takes place (Article 3).
Related legislation: PRC Tentative Regulations for Enterprise Income Tax, Dec 13 1993, CLP 1994 No.1 p.9