Feb. 4 – The State Administration of Taxation has released a circular explaining applied corporate income tax for construction companies.

The circular instructs trans-regional construction enterprises implementing the head office and branch office systems to calculate and pay for CIT tax following the provisions stated in Guoshuifa [2008] Document No. 28 issued in 2008 and detailing CIT implications.

It goes on to say that local tax authorities are ordered to stop using tax collection documents that contradict with this circular and amend accordingly. CIT payments made in advance prior to the newest provisions should be returned to the companies.

For more help in handling taxes in China email tax@dezshira.com.