To implement the Opinions on Further Deepening the Reform of Tax Collection and Administration issued by the CPC Central Committee Office and the State Council Office, to continuously deepen the reform of tax system “to streamline administration, delegate powers, and improve regulation and service”, to optimize the tax environment, and to carry out the “Spring Breeze Project” in depth, in accordance with Tax Collection and Administration Law of the People’s Republic of China and its Implementation Rules, Enterprise Income Tax Law of the People’s Republic of China (hereinafter referred to as Enterprise Income Tax Law) and its Implementation Regulations, and other relevant provisions, the State Taxation Administration has revised the report forms related to the overseas investment and income information reported by resident enterprises, streamlined and optimized the content and methods of information reporting. The Announcement is as follows:

A resident enterprise itself or through its domestic partnership, on any day within a tax year, directly or indirectly holding 10% or more of the shares or voting shares in a foreign enterprise, shall submit the streamlined Information Report Form on Resident Enterprise Overseas Investment (see annex) to the competent tax authority when filing the annual enterprise income tax return for that year.

The term “Controlled Foreign Company” mentioned in the annex of this Announcement refers to a company established in accordance with the laws of a foreign country (region), whose place of effective management is not situated within the territory of China, and is controlled by a Chinese resident enterprise(s), or by a Chinese resident enterprise(s) along with a Chinese resident(s).

When determining the nature or conditions of control, the shareholding through multiple intermediate tiers shall be calculated by multiplying the shareholding proportion of all intermediate tiers. When exceeding 50 percent, the shareholding proportion of the intermediate tier(s) shall be deemed as 100 percent .  

Where non-resident enterprises with established institutions or places within the territory of China obtain income generated outside the territory but effectively connected with the established institutions or places, this Announcement shall be applicable.

    This Announcement shall enter into force on October 10, 2023. The provisions of this Announcement shall apply to the reportable information for the year 2023 and subsequent years. The Articles 76, 77 and 79 in Chapter 8 of the Circular of the State Taxation Administration on the Issuance of the “Implementation Measures for Special Tax Adjustments (Provisional)” (State Taxation Administration Circular No.2 of 2009), and the Announcement of the State Taxation Administration on Issues with respect to Resident Enterprises Reporting Information on Overseas Investments and Income (State Taxation Announcement No.38 of 2014) are hereby repealed simultaneously.

Annex: Information Report Form on Resident Enterprise Overseas Investment.docx

State Taxation Administration

September 7, 2023

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.