Announcement of state administration of Taxation on optimizing Matters Related to Advance Payment of Enterprise Income Tax Declaration

To implement the Enterprise Income Tax Law of the People’s Republic of China and relevant tax policies, the State Taxation Administration has revised the enterprise income tax advance payment return. The Monthly (Quarterly) Advance Payment Return for Enterprise Income Tax of the People’s Republic of China (Form A) (Attachment 1) is hereby issued. The following matters are hereby announced:

I. Enterprises eligible for income tax credits on specialized equipment for energy conservation, water conservation, environmental protection, and workplace safety may choose to claim the credit during advance tax filing based on their circumstances, or opt to claim the income tax exemption during the annual tax settlement filing.

II. The Monthly (Quarterly) Corporate Income Tax Advance Payment Return Form (Type A) of the People’s Republic of China is applicable for resident enterprises subject to corporate income tax under the book-and-record method. It is to be completed for monthly and quarterly advance payment filings.

III. Branches of enterprises engaged in cross-regional operations and subject to consolidated tax filing under the “Administrative Measures for the Collection of Enterprise Income Tax from Enterprises Engaged in Cross-Regional Operations and Subject to Consolidated Tax Filing” (Announced by State Taxation Administration Announcement No. 57 of 2012, amended by Announcement No. 31 of 2028) shall use the “People’s Republic of China Enterprise Income Tax Monthly (Quarterly) Advance Tax Return (Type A)” for monthly and quarterly advance tax filing, as well as annual final settlement and tax payment.

IV. Where provincial (autonomous region, municipality directly under the central government, and city with independent planning status) tax authorities administer enterprises with branches established solely within their jurisdiction that lack legal person status in accordance with the Administrative Measures for the Collection of Enterprise Income Tax for Enterprises Engaged in Cross-regional Operations, such branches shall file monthly and quarterly advance tax payments and annual final tax settlements as stipulated in Article III of this Announcement.

V. When enterprises declare various preferential items and pending matters, they shall report based on the item names listed in the (Corporate Income Tax Declaration Item Directory). The Corporate Income Tax Declaration Item Directory is separately published in the “Taxpayer Services” section of the State Taxation Administration website and will be updated as needed in accordance with policy adjustments

VI. Enterprises engaged in production and sales shall calculate and declare corporate income tax on income derived from exported goods in accordance with the law. Specifically: – Enterprises exporting goods through self-operated channels shall declare income corresponding to the export of goods produced and sold by the enterprise itself; – Enterprises exporting goods through commissioned channels shall declare income corresponding to the export of goods commissioned by the enterprise.

VII. Enterprises acting as agents for export goods, including through market procurement trade or comprehensive foreign trade services, shall concurrently submit the basic information and export value of the actual principal when filing advance tax returns. If an enterprise fails to accurately report the basic information and export value of the actual principal, the transaction shall be treated as self-operated, and the enterprise shall bear the corresponding corporate income tax payable on the reported export value. The actual principal refers to the entity that actually manufactures and sells the exported goods.

VIII. This Announcement shall take effect on October 1, 2025. and the Annex “Catalogue of Corporate Income Tax Preferential Items (2017 Edition)” to the Announcement of the State Taxation Administration on Issuing the Revised Measures for Handling Corporate Income Tax Preferential Policy Matters (Announcement No. 23 of 2018), specifically Item 66 “Investment in Specialized Equipment for Environmental Protection, Energy Conservation, Water Conservation, and Work Safety Qualifies for Tax Credits at a Specified Proportion,” shall be repealed simultaneously.