Article 4(5) of the Implementing Rules of the Provisional Regulations on Value-added Tax stipulates that the act of providing self-produced, commissioned processing or purchased goods as investment to other units or individual operators shall be regarded as the sale of goods. According to the above provisions, investment in equipment should be treated as a sale of value-added tax and its additional tax.
But China's exports have a tax rebate policy, export tax rebate refers to the international trade business, China's customs clearance of goods exported to the refund of the domestic production and circulation of the VAT and consumption tax paid in accordance with the provisions of the tax law, i.e., the export sector is exempted from tax and refund of tax payments in the previous tax link has been taxed.
Do I need to file a tax return for the investment money paid to foreign subsidiaries?
In the documents of the State Administration of Taxation, there is no such article for those who need to file, and there is no such article for those who don't need to file.
One, the domestic institutions and individuals to foreign single payment equivalent to more than 50,000 U.S. dollars (excluding the equivalent of 50,000 U.S. dollars, the same below) the following foreign exchange funds, in addition to the circumstances provided for in Article III of this announcement, should be to the competent tax authorities in the location of the tax filing:
(a) foreign institutions or individuals from the territory of the including transportation, tourism, communications, construction, installation and contracting of services, insurance services, financial services, computers and information technology, and the tax filing. services, financial services, computer and information services, use and licensing of exclusive rights, sports, cultural and recreational services, other commercial services, government services and other services trade income;
(ii) remuneration for work done in the territory of foreign individuals, dividends, bonuses, profits, interest on direct debts, guarantee fees, and donations for non-capital transfers, compensations, taxes, etc., received from the territory of the foreign institutions or individuals, occasional income and other gains and current transfer income;
(3) financial lease rentals, real estate transfer income, equity transfer income and other legitimate income of foreign investors obtained by foreign institutions or individuals from the territory.
Foreign investors who have reinvested more than 50,000 US dollars in the country with their legitimate income from direct investment in the country shall make tax filings in accordance with these provisions.
Third, domestic institutions and individuals to pay the following foreign exchange funds, without having to deal with and submit the "filing form":
(a) Domestic institutions in the overseas travel, meetings, exhibitions and sales of goods and other expenses;
(b) Domestic institutions in the overseas representative offices of office expenses, as well as domestic institutions in the overseas contracted projects of the project;
(c) Domestic institutions in the overseas contracted projects of the project;
(d) Domestic institutions in the foreign exchange funds, without having to deal with and submit the "filing form". (c) commissions, insurance premiums and compensation payments for import and export trade incurred abroad by domestic organizations;
(d) international transportation expenses incurred by domestic organizations under import trade;
(e) premiums, insurance premiums and other related expenses under insurance;
(f) expenses incurred abroad by domestic organizations engaged in transportation or distant-water fishing for repairs, fuel, harbor miscellaneous expenses and other expenses;
(vii) Tour fees of domestic travel agencies engaged in outbound tourism business, as well as accommodation, transportation and other related expenses booked or organized on behalf of the agency;
(viii) Income or revenues obtained from China by the Asian Development Bank and the International Finance Corporation of the World Bank Group, including profits from investment in joint ventures and income from the transfer of shares, income from the leasing or transfer of property in China, as well as interest earned from loans to domestic institutions;
(i) Interest earned by domestic institutions engaged in transport or ocean-going fisheries abroad;
(ii) Interest earned by domestic institutions engaged in transport or ocean-going fisheries abroad on repairs, fuel, port and miscellaneous expenses;(ix) foreign governments and international financial organizations to China under the foreign government (transfer) loans (including foreign governments mixed (transfer) loans) and international financial organizations loans interest. The international financial organizations referred to in this item refers to the International Monetary Fund, the World Bank Group, the International Development Association, the International Fund for Agricultural Development, the European Investment Bank, etc.;
(10) foreign exchange designated banks or finance companies own external financing such as foreign borrowing, foreign interbank lending, overseas payments and other debt, etc. under the interest;