Shanghai Issues Notice on CIT Declaration and Payment by Resident Enterprises

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Apr. 4 – The Shanghai Municipal Office of SAT and Shanghai Municipal Local Taxation Bureau jointly promulgated the “Notice on Improving the Work Related to the Settlement and Payment of Corporate Income Tax of Year 2010 (Hu Guo Shui Suo [2011] No.3)” in January 21, 2011.

The notice applies to all resident enterprises that pay CIT in Shanghai. It stipulates that regardless of whether the taxpayer made profit or incurred loss in year 2010, it should submit an annual CIT declaration form to the tax authority in charge and settle the taxes to be paid or refunded before the end of May 2011. Similarly, the notice requires all tax authorities in charge to complete the supplementation and refund of CIT prior to the end of May 2011.

The 2011 CIT declaration has both electronic and paper components. The taxpayer should first complete the declaration online at, after which they should submit paper materials, including the CIT Annual Tax Payment Declaration Form, the 2010 Fiscal Year Financial Audit Report and other materials, to the tax authority in charge within the stipulated time frame. After the tax authority’s acceptance of the tax declaration materials, if the tax prepaid is found to be less than the tax payable for the entire year, the difference should be supplemented prior to May 31, 2011.

If the taxpayer is unable to complete the declaration or compile all necessary materials within the time limit due to force majeure, or has special difficulties rendering it unable to supplement tax payment within the time limit, it can apply for extension of declaration or payment (as applicable) according to the relevant stipulations of the Law on the Levying and Collection of Taxes.

Dezan Shira & Associates maintains an office in Shanghai and can advise on issues of tax and compliance and how to successfully navigate through such procedures. To contact the office, please email or visit the firm’s web site at

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