Tax Treatment Varies From Branch Offices To Offices.

In order to meet the needs of business, many enterprises want to set up business contacts throughout the country.

From the point of view of company management, it is generally desirable that such business contacts only engage in business rather than pay taxes locally.

Therefore, some enterprises take the way of setting up offices in the local area, or simply do not even set up offices, rent one or two houses locally, start sending and receiving goods and collecting customers' money.

If this behavior is found by the tax authorities, the tax authorities will approve the tax payable on their business activities, and they shall be ordered to pay taxes and fines.

This way of doing business is actually stupid.

After the goods are paid taxes in the sales place, the head office will have to pay another tax, resulting in a "repeated tax payment" which will outweigh the gains.

The reason for this is that there is a lack of understanding of how these enterprises can pay taxes on branch offices and offices.

After the development of enterprises to a certain scale, based on stable supply channels, opening up new markets or facilitating customer service, it is inevitable that branches should be established in areas where sales are relatively concentrated.

There are mainly two types of branches: one is a branch, the other is the office.

A branch can engage in business activities, and offices can only engage in business liaison activities within the scope of business of the head office.

Tax treatment of branches and offices is different, mainly reflected in corporate income tax and turnover tax.

From the perspective of enterprise income tax, the office can not engage in business activities because there is no business income, no profit, no taxable income, no enterprise income tax is required. For the branch, the enterprise income tax can be paid at the tax office where the branch is located, or it can be aggregated and paid by the head office.

For the summary payment made by the head office, the certificate of the enterprise income tax issued by the internal revenue office of the head office has been aggregated and paid at the head office, and the branch has the certificate to go through the relevant formalities at the local tax bureau.

Generally speaking, the aggregate tax payment is better than the independent tax payment, because the profits and losses of the head office and the branch company can make up for each other.

From the point of view of value added tax, the office does not need to pay VAT because it does not engage in business activities, and the activities of its branches must pay VAT locally.

In order to avoid paying the value-added tax at the location of the branch, the general agency may set up an office in accordance with the regulation on the issue of the value added tax on the pfer of goods between the enterprises to which the branch is located. In order to avoid paying the value-added tax, the establishment of a class of offices shall not be invoiced and no payment will be received. The payment will be directly remitted to the headquarters by the customers, and the invoices will be directly issued by the headquarters to the customers. 1998.

The office is only responsible for the supervision and custody of the pfer of goods.

In order to facilitate sales, some enterprises often set up or rent warehouses in sales places.

There are two basic modes: one is the warehouse, which is managed by the general office, and the wages, operating expenses and warehouse rents of the management personnel are all paid by the head office. The management personnel contact the business in the name of the general organization and sign contracts with the foreign parties.

In this way, in order to avoid paying VAT in the sales place in a short time, the enterprise shall apply to the tax authorities at the place where the head office is located to apply for the certificate of tax collection and management of the business activities for the expropriation business. The selling personnel at the location of the leasing warehouse shall carry out the business tax collection and management certificate of the business activities of the tax authorities issued by the tax authorities at the place where the head office is located, and the value added tax can be paid by the tax authorities at the place where the head office is located.

Another mode is to rent warehouses in different places. The head office does not send personnel to the warehouse, nor does it carry out business activities through the warehouse. In this case, it does not have to pay VAT locally.

In short, when enterprises set up branches in different places, they should not only consider the needs of operation, but also consider the different tax treatment of different organizations, so that they can make reasonable planning so as to avoid tax risks.

A small piece of jade