The Shanghai Municipal Tax Service of the State Taxation Administration recently issued the User Guide for Tax-Filing of Non-resident Enterprises on E-Tax Bureau Shanghai, introducing an innovative tax service in which non-resident enterprises can complete the declaration of equity transfer and tax payment online.
Specifically, non-resident enterprises can get information on equity transfer contracts, declare the corporate income tax and stamp duty involved in equity transfers, as well as pay taxes online.
It caters to non-resident enterprises that have no offices in China and can declare corporate income tax (applicable to those without withholding agents) and stamp duty on a case-by-case basis for income from equity transfers of non-listed companies (excluding restricted shares).
Bilingual interface
The service provides overseas taxpayers with a bilingual interface and features many tips for guidance, covering such functions as registration and login, collection of identity information, as well as contract content on cross-border equity transfer, declaration, and tax payment.
Innovative login model
Relying on the new unified identity authentication system of the State Taxation Administration, the non-resident natural person can obtain a verification code by email to register as a non-resident user of the e-tax bureau and then apply for the only identification code to sign up as a non-resident enterprise.
Identification code for non-resident enterprises
After completing the application, non-resident enterprises can receive a unified national identification code and get access to the e-tax bureaus of 36 provinces (municipalities, autonomous regions, and cities under separate planning) across the country to handle tax declaration and payment. This will lay a solid foundation for non-resident companies to establish a panoramic digital account.
'Smart calculation of taxes'
By connecting related services in the self-declaration process for non-resident enterprises' equity transfers, the Shanghai Municipal Tax Service of the State Taxation Administration integrates the information collection of cross-border contracts, tax withheld at the source, and tax source of stamp duty.
Previously, enterprises had to fill in different declaration forms by tax type. The Shanghai tax bureau has simplified the procedures through the integration of the corporate income tax form with the property and behavior taxes form.
It also changes the column-based form to a data collection mode so that non-resident enterprises only need to submit three to five pieces of data and the system can automatically calculate the tax, which is simple and easy to operate. It is a practice of the local bureau's "smart calculation of taxes" under the innovative concept of "data plus rules" model.