01. Analysis of direct credit cases
Take the acquisition of operating profits and franchise income of overseas branches and permanent establishments as an example].
Domestic Company A is a high-tech enterprise engaged in the production and installation of electricity meters, and has set up a number of subsidiaries and branches abroad. [Note: In this case, the "non-country-specific non-itemized credit method" is selected].
(1) [Indonesia] subsidiary
Domestic Company A collects royalties from its Indonesian subsidiary and obtains royalty income. Royalty withholding tax at source of IDR 130,000 in 2023; IDR 1,170,000 was actually received at an exchange rate of 0000473, the book income was RMB61490,000 yuan ((1,170,000+130,000) 0000473＝614.9)。
Calculation: 1. The amount of income tax directly paid abroad is 130,000 0000473＝61.490,000 yuan;
2. Adjusted income after tax on overseas income Overseas income after tax Income tax directly paid income tax 1,170,000 0000473＋61.49＝614.900,000 yuan.
(2) [Colombia] Branch
In 2023, the total audited profit of the Colombian branch is RMB2,100,000 (the Colombian branch implements independent accounting and self-management), the asset impairment loss is RMB180,000 (there are no other tax adjustments), and the local corporate income tax is 300,000,000 pesos (which we regard as having been paid before the final settlement of the enterprise income tax). The tax refund received is 200,000,000 pesos, and the corporate income tax paid abroad after deducting the tax refund is 100,000,000 pesos, assuming an exchange rate of 00021188。
Calculation: 1. The amount of income tax directly paid overseas The amount of enterprise income tax withheld overseas The amount of tax refund (300,000,000 200,000,000) 00021188＝21.190,000 yuan;
2. Adjusted income after tax on overseas income Pre-tax income for overseas branches Tax adjustment for income and expenses of overseas branches 210,182,280,000 yuan.
(3) [Brazil] subsidiary
In 2023, Company A confirmed an investment income of RMB100 million in Brazil (not actually received), of which the dividend for 2022 was RMB60 million (the resolution of the shareholders' meeting in 2023) and the dividend for 2023 was RMB40 million (no profit distribution resolution was made for the time being). The total profit of the Brazilian subsidiary in 2022 was RMB120 million, with corporate income tax of RMB11 million, after-tax profit of RMB109 million, and actual corporate income tax of RMB8.8 million.
Calculation: 1. The amount of income tax indirectly borne abroad The actual enterprise income tax paid in 2022 The dividends allocated to company A in the resolution The after-tax profit of enterprise income tax in 2022 880 6000 (12000 880) 474820,000 yuan;
2. Income tax adjusted for overseas income Overseas after-tax income Income tax indirectly borne (10,000 4,000) 47482＝6,474.820,000 yuan;
(4) [Bangladesh] project
From November 2022 to July 2023, the total revenue of the three meter installation projects in Bangladesh was RMB 9 million, the project cost was RMB 3.5 million, and the direct management expenses were RMB 1.2 million (including business entertainment expenses of RMB 300,000), the revenue of domestic company A during this period was RMB 90 million, the total indirect management expenses of company A was RMB 11 million, and the local enterprise income tax paid by the project according to the permanent establishment was RMB 1.25 million.
Calculation: 1. The amount of income tax directly paid abroad is 1.25 million yuan.
2. Indirect management costs borne by Bangladesh projects (900 9900) 1100 1 million yuan (apportioned according to income);
3. Adjusted income after tax on overseas income Pre-tax income Tax adjustment on income and expenses of overseas branches Costs and expenses related to the adjustment of overseas income (900 350 120 100) (30 40%) 3.42 million yuan.
Note
Determination of the tax year of overseas branches: According to Article 11 of the Notice on Issues Concerning the Credit of Overseas Income Tax of Enterprises (2009) 125 of Cai Shui (2009), if an enterprise invests in overseas and establishes a branch without independent tax status, and the tax year in which it calculates its production and business income is inconsistent with the tax year stipulated in China, the overseas tax year corresponding to the current year of China's tax year shall be the overseas tax year ending on any day in the relevant tax year in China. For example, the tax year of Bangladesh is: August 2022 to July 2023, and the corresponding tax year in China is 2023, so its taxable income from August 2022 to July 2023 should be incorporated into China's taxable income in 2023.
To sum up, the actual domestic income tax credit of enterprise A's overseas income under the "non-country-neutral" credit method is shown in the following table:
02. Analysis of indirect credit cases
Take the dividends and dividends of subsidiaries with more than one layer of overseas equity structure as an example].
Assumption: When dividends are distributed, 10% withholding tax needs to be paid in the country of income**; 50% of the distributable amount of the after-tax profit of each entity will be distributed to the upper-level investors; Exchange rates are not taken into account. The shareholding structure and related data are shown in the figure below (unit: 10,000 yuan):
[Analysis].Since the Chinese company directly holds shares in Company A and indirectly holds shares in Company B and Company C (both holding more than 20% of the shares), Company A, Company B and Company C are the first-tier, second-tier and third-tier overseas subsidiaries that are eligible for indirect credit shareholding, respectively.
(1) Calculation of the tax amount of company C
1. Calculation of dividend distribution
If the pre-tax profit of Company C for the current year is 4 million yuan, and the actual income tax paid by the country where it is located in the current year after being calculated according to the tax law of that country is 800,000 yuan (20% of 4 million yuan), its after-tax profit is 3.2 million yuan. Company C distributed a 50% dividend of RMB 800,000 (RMB 3.2 million, 50%, 50%) to Company B according to its shareholding ratio of 50%.
2. The formula for calculating the tax amount of indirect burden is as follows:
The tax amount paid by the enterprise (Company C) at this level belongs to the tax amount borne by a superior enterprise (Company B) (the actual tax paid by the enterprise at this level on profits and investment income + the tax amount indirectly borne by the enterprise at this level) Dividends (bonuses) distributed by the enterprise at this level to an enterprise at the upper level) The profit after income tax of the enterprise at this level (80 0) 80 320 200,000 yuan.
(2) Calculation of the tax amount of Company B
1. Calculation of the total taxable income of Company B in the current year:
Company B's pre-tax profit (excluding dividends) for the current year was 6 million yuan, and the investment income from company C's dividends was 800,000 yuan, which was reverted to a pre-tax dividend of 1 million yuan (800,000 yuan and company B indirectly borne the tax amount of 200,000 yuan), so the total taxable income of company B for the year was 7 million yuan (6 million yuan and 1 million yuan).
2. Calculation of the actual deductible income tax amount of Company B:
Company B's investment income from dividends and dividends from Company C is 800,000 yuan, and the withholding tax of the country where Company C is located is 80,000 yuan (10% of 800,000 yuan) at 10%, that is, the amount of foreign income tax that Company B can apply for direct credit is 80,000 yuan; The tax amount paid by Company C is RMB 200,000 to be borne by Company B, that is, the amount of foreign income tax that Company B can apply for indirect credit is RMB 200,000; Company B's applicable foreign income tax amount = direct credit of 80,000 yuan + indirect credit of 200,000 yuan = 280,000 yuan. Credit Limit Pre-tax Dividend Applicable Tax Rate in Country B 100 24% 240,000 In summary, the actual amount of income tax credited by Company B min(28,24) 240,000 yuan.
3. Calculation of dividend distribution:
After enjoying the direct and indirect credits in the current year, Company B actually paid the income tax of the country where it is located was 1.44 million yuan (7 million yuan, 24% and 240,000 yuan), and the after-tax profit of Company B was 5.28 million yuan (80 8 600 144), and Company B distributed 50% dividends of 1.32 million yuan (5.28 million yuan, 50% 50%) to Company A according to its 50% shareholding ratio.
4. The formula for calculating the tax amount of indirect burden is as follows:
The tax amount paid by the enterprise (Company B) at the same level belongs to the tax amount borne by a higher-level enterprise (Company A) (the actual tax paid by the enterprise at the same level on profits and investment income + the tax amount indirectly borne by the enterprise at this level) The dividends (bonuses) distributed by the enterprise at the same level to an enterprise at the upper level) The profit after income tax of the enterprise at this level (144 8 20) 132 528.43 million yuan.
(3) Calculation of the tax amount of company A
1. Calculation of the total taxable income of Company A in the current year
The pre-tax profit (excluding dividends) of company A for the current year was 10 million yuan, and the investment income from dividends and dividends of company B was 1.32 million yuan, which was reduced to 1.75 million yuan in pre-tax dividends (1.32 million yuan and company A indirectly borne the tax amount of 430,000 yuan), so the total taxable income of company A in the current year was 11.75 million yuan (10 million yuan and 1.75 million yuan).
2. Calculation of the actual deductible income tax amount of company A:
Company A's investment income from dividends and dividends from Company B is 1.32 million yuan, and the withholding tax of the country where Company B is located is 1320,000 yuan (1.32 million yuan 10%), that is, the amount of foreign income tax applicable to which company A can be directly credited is 1320,000 yuan; The tax amount paid by Company B is 430,000 yuan borne by Company A, that is, the amount of foreign income tax that Company A can apply indirect credit is 430,000 yuan; All foreign income tax credits applicable to Company A = direct credit 1320,000 yuan + indirect credit of 430,000 yuan = 5620,000 yuan; Credit Limit Pre-tax Dividend Applicable tax rate in country A 175 30% 5250,000 yuan In summary, the actual amount of income tax credited by company A min (56.).2，52.5）＝52.50,000 yuan.
3. Calculation of dividend distribution:
Company A's actual income tax paid by the country where it is located after enjoying direct and indirect credits in the current year is 3 million yuan (11.75 million yuan, 30% 52.).50,000 yuan), and the after-tax profit of Company A was 81880,000 yuan (132 13.)2 1000 300) Company A distributes 50% dividend to the Chinese company according to its 90% shareholding ratio 368460,000 yuan (818.)80,000 yuan, 90%, 50%).
4. The formula for calculating the tax amount of indirect burden is as follows:
The tax amount paid by the enterprise (Company A) belongs to the tax amount borne by a higher-level enterprise (Chinese company) (the actual tax paid by the enterprise at this level on profits and investment income + the tax indirectly borne by the enterprise at this level) Dividends (bonuses) distributed by the enterprise at this level to an upper-level enterprise Profit after income tax at this level (300 13.)2＋43）×368.46÷818.8＝160.290,000 yuan.
(4) Calculation of corporate tax in China
1. Calculation of the total taxable income of a Chinese company in the current year:
The pre-tax profit (excluding dividends) of the Chinese company for the year was 20 million yuan, and the investment income from dividends and dividends of company A was 368460,000 yuan, reverted to a pre-tax dividend of 528750,000 yuan (368460,000 yuan The Chinese company indirectly bears 160 taxes290,000 yuan), so the total taxable income of the Chinese company in the current year is 2528750,000 yuan (20 million yuan 528.)750,000 yuan).
2. Calculation of the actual amount of tax deductible income tax of a Chinese company:
The Chinese company received 368460,000 yuan, according to 10% of the withholding tax of the country where company A is located, the amount is 36850,000 yuan (368460,000 yuan 10%), that is, the amount of foreign income tax applicable to the direct credit of Chinese companies is 36850,000 yuan; The tax amount paid by Company A is 160290,000 yuan, that is, the amount of foreign income tax applicable to the indirect credit of Chinese companies is 160290,000 yuan. The total amount of foreign income tax applicable to the Chinese company = direct credit 36850,000 yuan + indirect credit 160290,000 yuan = 197140,000 yuan. Credit Limit Pre-tax Dividend China Applicable Tax Rate 52875×25%＝132.190,000 yuan In summary, the actual amount of income tax credited by Chinese companies min (197.).14，132.19）＝132.190,000 yuan;
3. Calculation of dividend distribution:
The actual amount of income tax paid by the Chinese company in the country where it is located after enjoying the direct and indirect credits in the current year is 5 million yuan (2528.).750,000 yuan 25% 132190,000 yuan;
*: Small tile tax.
Author: Song Xiaowa love
*Editor: Mu Lin Financial News.