Announcement of the State Administration of Taxation on Issues concerning Follow-up Administration after the Cancelation of Approval for Items of Simple Collection and Sparing Credit Applied to Enterprises' Overseas Income

Announcement of the State Administration of Taxation [2015] No.70

October 10, 2015

In accordance with the Announcement of the State Administration of Taxation on Promulgating Twenty-two Canceled Non-administrative Licensing Examination and Approval Items about Taxation (Announcement of the State Administration of Taxation [2015] No.58), for the purpose of strengthening the follow-up administration after the cancelation of approval for items of simple collection and sparing credit applied to enterprises' overseas income, agreed upon by the Ministry of Finance, it is hereby announced as follows:

I. Where the overseas income of an enterprise falls within the provisions of Article 10, Sections 1 and 2 of the Circular of the Ministry of Finance and the State Administration of Taxation on Issues concerning Tax Credit for Enterprises' Overseas Income (CaiShui [2009] No.125), the simple-collection method may be adopted to work out tax credit on the amount of tax already paid for enterprises' overseas income. The enterprise shall, in the annual final settlement period, submit to the competent tax authorities the record data, the content of which shall be in compliance with Article 30 of the Announcement of the Ministry of Finance and the State Administration of Taxation on Promulgating the Operating Guidelines on Tax Credit for Enterprise Offshore Income (CaiShui [2010] No.1).

II. This Announcement shall come into force as of the date of promulgation."Upon application by the enterprise and approval by the competent tax authorities...", as provided in Article 10 of the Circular of the Ministry of Finance and the State Administration of Taxation on Issues concerning Tax Credit for Enterprises' Overseas Income (CaiShui [2009] No.125), shall be repealed simultaneously.

It is hereby announced.