Can income of a few business establishments be consolidated for tax purposes?
An FIE or FE which has two or more business establishments set up in China may elect one establishment for consolidated income tax filing and payment purposes, however, that establishment must meet the following requirements:
- It shall assume supervisory and management responsibility over the business of other establishments.
- It shall keep complete accounting records and vouchers that correctly reflect the income, expenses, profits and losses of other business establishments.
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