8 Q & A of “Three in One” China Company Business License
Now Three in One business license is carried out for newly-registered companies in China, that is the organization code certificate, SAT certificate and local tax bureau certificate are integrated into one business license; all use one number, that is, the unified social credit code on the new version of business license. The unified code is designed to be 18-digit and consists of five parts, registration management department code, organization category code, administrative district code of registration management department, main identification code (organization code) and verification code (see attachments).
What do you need to notice when using new version of business license? Here Business China summarizes 8 common problems after new enterprises are set and answers as follows:
1. Do newly-established enterprises need to handle tax registration?
Answer: No.
According to Article 2 of Notice of State Administration of Taxation on Implementing “Three in One” Registration System Reform (Shui Zong Han [2015] No. 482), as per the relevant work arrangement, “Three in One, one code for one license” registration reform is overally carried out nationwide on October 1, 2015.
After receiving the business license with the unified social credit code of the legal person and other organizations (hereinafter referred to as unified code) approved and issued by the industrial and commercial administration department, newly-established enterprises and farmer’s professional cooperatives (hereinafter referred to as the “enterprises”) no longer needs to carry out tax registration again and no longer receive tax registration certificate. When handling tax-involved matters, after completing collection of supplementary information, the enterprises can use the business license with unified code instead of tax registration certificate.
Except for the above circumstances, the other tax registrations shall be carried out as per the original legal system.
2. Does it belong to overdue registration if the company does not register in the tax authority within 30 days after Three in One?
Answer: If the enterprises does not register in the tax authority within 30 days after obtaining “Three in One and one code for one license” license, it does not belong to overdue registration.
3. After “Three in One”, what change does the taxpayer identification number have?
Answer: After “Three in One” is carried out, newly-established enterprises and the enterprises renewing license will obtain the business license with 18-digit “unified social credit code” approved and issued by the industrial and commercial registration department. This 18-digit “unified social credit code” is not only the industrial and commercial registration number of the enterprise, but also the tax registration number.
4. After “Three in One” registration system is implemented, does the newly-established enterprise need to put on stamp duty?
Answer: According to the provisions of Provisional Regulations on Stamp Duty and Rules for Implementation, stamp duty shall be put on business books, including account books for production and operation and books recording funds, as per 5‱of the sum of paid-in capital and capital reserve. A stamp duty of 5 Yuan shall be put on other books. Stamp duty shall be put on the taxable receipt when being booked or received. Putting on stamp duty at the time of being booked or received refers to putting on stamp duty when the contract is signed, the receipt is issued, the books are initiated and the license is received. After stamp duty is put on the books recording funds, if the total annual capital increases compared with the total funds with stamp duty on, stamp duty shall be put on for the increased part as stipulated.
5. Shall information change be applied for to the industrial and commercial management department or the competent tax authority?
Ask: Shall the enterprises changing new Three in One license apply to the industrial and commercial management department or the competent tax authority in case of change of three information, production and operation address, financial principal and accounting method?
Answer: After the reform of “one code for one license” is implemented, both the enterprises receiving “one code for one license” and the enterprises still not receiving “one code for one license” shall apply to the competent tax authority for change of production and operation address, financial principal and accounting method.
What do you need to notice when using new version of business license? Here Business China summarizes 8 common problems after new enterprises are set and answers as follows:
1. Do newly-established enterprises need to handle tax registration?
Answer: No.
According to Article 2 of Notice of State Administration of Taxation on Implementing “Three in One” Registration System Reform (Shui Zong Han [2015] No. 482), as per the relevant work arrangement, “Three in One, one code for one license” registration reform is overally carried out nationwide on October 1, 2015.
After receiving the business license with the unified social credit code of the legal person and other organizations (hereinafter referred to as unified code) approved and issued by the industrial and commercial administration department, newly-established enterprises and farmer’s professional cooperatives (hereinafter referred to as the “enterprises”) no longer needs to carry out tax registration again and no longer receive tax registration certificate. When handling tax-involved matters, after completing collection of supplementary information, the enterprises can use the business license with unified code instead of tax registration certificate.
Except for the above circumstances, the other tax registrations shall be carried out as per the original legal system.
2. Does it belong to overdue registration if the company does not register in the tax authority within 30 days after Three in One?
Answer: If the enterprises does not register in the tax authority within 30 days after obtaining “Three in One and one code for one license” license, it does not belong to overdue registration.
3. After “Three in One”, what change does the taxpayer identification number have?
Answer: After “Three in One” is carried out, newly-established enterprises and the enterprises renewing license will obtain the business license with 18-digit “unified social credit code” approved and issued by the industrial and commercial registration department. This 18-digit “unified social credit code” is not only the industrial and commercial registration number of the enterprise, but also the tax registration number.
4. After “Three in One” registration system is implemented, does the newly-established enterprise need to put on stamp duty?
Answer: According to the provisions of Provisional Regulations on Stamp Duty and Rules for Implementation, stamp duty shall be put on business books, including account books for production and operation and books recording funds, as per 5‱of the sum of paid-in capital and capital reserve. A stamp duty of 5 Yuan shall be put on other books. Stamp duty shall be put on the taxable receipt when being booked or received. Putting on stamp duty at the time of being booked or received refers to putting on stamp duty when the contract is signed, the receipt is issued, the books are initiated and the license is received. After stamp duty is put on the books recording funds, if the total annual capital increases compared with the total funds with stamp duty on, stamp duty shall be put on for the increased part as stipulated.
5. Shall information change be applied for to the industrial and commercial management department or the competent tax authority?
Ask: Shall the enterprises changing new Three in One license apply to the industrial and commercial management department or the competent tax authority in case of change of three information, production and operation address, financial principal and accounting method?
Answer: After the reform of “one code for one license” is implemented, both the enterprises receiving “one code for one license” and the enterprises still not receiving “one code for one license” shall apply to the competent tax authority for change of production and operation address, financial principal and accounting method.