Announcement of the State Taxation Administration on Matters Concerning Optimizing Enterprise Income Tax Prepayment Declarations

Issued by:	State Taxation Administration
Issue No.:	Announcement No. 17 of 2025 of the State Taxation Administration
Issue Date:	July 7, 2025
Effective Date:	October 1, 2025
Links:	https://fgk.chinatax.gov.cn/zcfgk/c100012/c5241820/content.html

The main contents of this announcement are as follows:

Tax credit for specialized equipment can be applied upon prepayment:

Previously, enterprises claiming the income-tax credit for purchasing specialized equipment used for energy-or-water-saving, environmental protection, or workplace safety could do so only during the annual return. Following the announcement, such enterprises may choose to take the credit either when making prepayments or in the annual filing, at their discretion.

Refining the tax treatment for self-operated exports, commissioned exports and agency exports:

Enterprise that exports goods on its own account or under commission shall declare the revenue derived from the exported or commissioned exported goods produced or sold by the enterprise itself.

Enterprises that export goods through agency shall, when making prepayment declarations, simultaneously submit the basic information of the actual commission exporter and the details of the export amount. Otherwise, it shall be treated as self-operated export, and the enterprise shall be responsible for declaring and paying the enterprise income tax corresponding to the relevant export amount.

Revision on the method for allocating taxes between the head office and branches:

The method for allocating taxes between the head office and branches currently applied in the annual filing is extended to each prepayment period. That is, an enterprise first allocates the amount of income tax payable by the end of the current month (quarter), then the head office and branches respectively offset the prepaid taxes they have been allocated, and calculate the amount of income tax to be paid or refunded in the current month (quarter). Through this revision, if an enterprise fails to accurately calculate the allocated taxes in the previous prepayment stages or if a branch is deregistered in the current quarter, the new calculation method will recalculate the annual allocated taxes through a full-volume apportionment method, making the tax calculation in the prepayment stage more accurate.