1. Collection and administration measures for consolidated Corporate Income Tax (CIT) paying enterprise
   
   Collection and administration measures for consolidated tax paying enterprise are ‘consolidated calculation, hierarchical administration, local advance tax payment, consolidated settlement, fiscal allocation’. The detailed regulations are as followed:
   
   Consolidated calculation refers to the unified calculation for all the taxable income and tax payable by the head office, which include all the branches without legal personality.
   
   Hierarchical administration means that local competent tax authorities of the head office and branches are responsible for the administration of CIT. Meanwhile the head office and the branches shall accept the administration of the local competent tax authorities respectively.
   
   Local advance tax payment means that the head office and branches shall declare and make advance payment separately to the competent tax authorities on monthly or quarterly basis.
   
   Consolidated settlement means that the head office make consolidated calculation for the annual taxable income and tax payable after the end of a year, and deducts the CIT paid in advance by head office and branches in the current year, then submit the application to refund the extra part of tax or make up the tax balances.
   
   Fiscal allocation means that the Ministry of Finance regularly transfer the to-be-distributed CIT income from Central Treasury to Local Treasury in accordance with the verified coefficient.
   
   
2. Procedures of the Annual CIT Declaration for head office and branches
   
   Within 5 months from the end of the year, the head office shall proceed consolidated calculation and deduct the advance payments of head office and branches to work out the CIT payable or refundable of the head office and branches, then the head office and branches pay CIT or apply for refund separately.
   
   
3. Preparatory work for branch’s Annual CIT Declaration
   
   Branches shall remind the head office to finish the Annual CIT Declaration in time and ask for the CIT Allocation Form that approved by the competent tax authorities of the head office.
   
   Branches shall report the asset losses to the head office and remain the relevant supporting documents for future reference.
   
   
4. Branches who not apportion and pay CIT locally
   
   

   (1)	The secondary auxiliary branches that providing after-sale service, responsible for internal R&D and storage without operation functions shall not apportion and pay CIT locally if they not pay VAT locally as well.
   (2)	The enterprise which recognized as a small low-profit enterprise last year, its secondary branches shall not apportion and pay CIT locally.
   (3)	The newly established secondary branches shall not apportion and pay CIT locally in the year of incorporation.
   (4)	The secondary branches closed in the current year shall not apportion and pay CIT locally from the start date of tax deregistration process.
   (5)	The secondary branches abroad without legal personality shall not apportion and pay CIT locally.
   (6)	If an unincorporated branch that operates in the name of the head office unable to provide the CIT Allocation Form or relevant supporting documents to prove the identify of its secondary or lower branch, it shall be regarded as as independent taxpayer and pay CIT locally.

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