On 31 December 2021, Chinese State Administration of Taxation (SAT) has issued Announcement No. 34 (2021) for reducing tax burdens in relation to the final settlement of corporate income tax. The announcement includes revision of certain forms for the annual corporate tax return, “Annual Tax Return for Enterprise Income Tax of the People’s Republic of China (Type A, 2017 Edition)“, to be used for the final settlement of corporate income tax in 2021 and future years.
According to the Announcement No. 34 (2021), if prepayments of corporate income tax during the year exceed the final tax payable, then a refund should be applied for, and the tax authority will promptly process the refund and no longer deduct the overpayment from corporate income tax payable in the following year.
