How To Register for Excess Profit Tax In China

How To Register for Excess Profit Tax In China

  • A tax which is assessed for income above the specified amount, typically that is greater than a “normal” amount of income. Taxes on excess profits are typically applied to certain businesses during the time of war, or any other emergency or over a specific amount of the return earned on investment capital. Taxes on excess profits are intended to raise emergency cash for the government during times of emergency. The tax is levied on the gap between the profits that a business typically earns in peacetime and profits that are earned during times of conflict.
  • Taxpayers will be given tax registration forms from the tax authority in charge or tax registration centers , and fill them out as needed.
  • The tax authority and tax registration offices review and verify the papers, documents, documents as well as tax registration documents that are submitted by taxpayers. They will give tax registration certificate to taxpayers who satisfy the requirements and also collect tax registration costs as well as administrative charges.

Documents Required Register for Excess Profit Tax

  • A commercial and industrial license for business or another similar permits for business operation
  • The contract or agreement or articles of association
  • The unifying organizational code
  • A passport, ID card or any other valid ID proof from the representative of legal or the responsible owner’s representative.
  • Other documents and documents are also required by tax authorities in an autonomous region, province or municipal directly under the supervision of the State Council

Office Locations and Contacts

The State Administration of Taxation Address Yangfangdian Road, Haidian District on the 5th
Zip: 100038
Tel: 010-63417114

State Administration for Industry and Commerce People’s Republic of China
Address: 8 Sanlihe Donglu, Xichengqu, Beijing, 100820, P. R. China
Phone: +86-10-68010463/68013447
Facsimile: +86-10-68010463/68013447

What Are All The Eligibility

It is added to the corporate income tax currently in effect. It usually is triggered when profits of a company exceed a certain amount over what is considered to be normal.


Every business must be registered at both SAT as well as your local tax authority and Customs in the event that it is required. Because of the complex nature of the taxation system taxes, the tax regulations may be read in different ways by various offices and officials, as well as across different districts within an identical city. Different offices across different regions might differ in their interpretation of tax regulations issued through the government and the way they implement them could differ. Contact local tax authorities or trusted service providers for the most current tax policies for the area where you’re located.

The Information You Need

  • The name and # of ID cards, passports,, or other valid ID document issued by the institution, its legal representative or the owner
  • The address for your business or home
  • The kind of registration
  • The accounting system
  • The type of production and the business operation
  • The production scope and operations
  • The sum in capital (fund) and investment
  • The definition of production and operation
  • The name and phone number of the chief financial officer.
  • Other information that is specified in the State Administration of Taxation

Documentation is needed

The Profit Tax tax is that is levied on earnings that are greater than the stipulated amount for “normal” revenue. Two principles govern the calculation of excessive profits. Oneprinciple, referred to as the war-profits principle is designed to help recoup profits from wartime earnings over the normal peacetime earnings that the tax payer earns. Another, referred to as the high-profits principle is based on the income that is over a certain statutory rate of return for invested capital

Information that could be helpful

Excess-profits tax is the tax assessed on the profits that are over a predetermined standard of income normal. There are two rules that govern the determination of surplus profits. One, called the war-profits rule, is designed to help recapture wartime growth in income that exceed normal peacetime earnings of taxpayers. The otherprinciple, which is known as the high-profits principle is based on the income that is over a certain statutory rate of return on investment capital.

Other uses for the document/certificate

The tax is also designed to deter smart businessmen from raking in huge profits from wartime government as well as consumer expenditure.

External Links

State Administration for Industry and Commerce People’s Republic of China

State Administration of Taxation of the People’s Republic of China

Ministry of Commerce, the People’s Republic of China

Tax Law

State Administr

How To Register for Excess Profit Tax In China
How To Register for Excess Profit Tax In China

ation of Taxation


Tax revenue In China can be collected by and distributed between the central and local governments. It is the State Administration of Taxation (SAT) is the top taxes authority within China and is home to SAT offices at municipal and provincial levels that are that are responsible for collecting value-added tax (VAT) as well as the consumption tax and business tax corporate income tax, and other taxes that are specialized. Additionally, there are local tax bureaus reporting to local governments. They are charged with collecting corporate tax, individual income tax, as well as other taxation specialized to. Additionally, imports and exports fall under customs duty as well as VAT and consumption tax are paid from customs officials from the General Administration of Customs and its branches across the country.



Leave a Comment