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Ascertainment of Resident Status of Overseas-registered Chinese-capital Controlled Enterprises

Writer:   |  Editor: Stephanie Yang  |  From: Shenzhen Tax Service, State Administration of Taxation  |  Updated: 2022-05-13


1.If an overseas-registered Chinese-capital controlled enterprise  ("OCCE") fits the descriptions of being a resident enterprise, it shall file an  application for ascertainment of resident status to the tax authority at the  place where its main investor in China is registered. The competent tax  authority should conduct a preliminary assessment of the enterprise's resident  status before further submitting the application level by level to the  provincial tax authority for confirmation. Such confirmation, after being made  by the provincial tax authority, will be communicated to other investment  related provincial tax authorities.

2.If an OCCE concurrently fits the following descriptions, it  should be identified as a resident enterprise with its effective management  located in China ("overseas-registered resident enterprise" or "ORE"), and be  subject to corresponding tax administration and to enterprise income tax on  income derived from sources inside and outside of China.

(1) The places where the senior management personnel and relevant  departments in charge of the daily production, operation and management of the  enterprise perform their duties are mainly located in China.

(2) Financial decisions (for example borrowing, lending, financing  and financial risk management) and human resources decisions (for example  appointment, dismissal and remuneration) are made or required to be approved by  any establishments or persons located in China.

(3) The main assets, accounting books, official seals, and minutes  of board/shareholder meetings of the enterprise are located or preserved in  China.

(4) 1/2 or more of the directors having voting rights or senior  management personnel of the enterprise habitually reside in China.

3.The principal of substance over form should be used for the  judgement on effective management. An OCCE should conduct a self-assessment to  determine if its effective management is located in China based on its actual  production, operation and management.

4.Where the place of effective management of an ORE is not where  its main investor in China is domiciled, the ORE falls under the jurisdiction of  the state tax authority at the place of effective management; or it may also  elect to fall under the jurisdiction of the tax authority in charge of levying  the corporate income tax of its main investor in China, upon approval of such  tax authorities' common superior.

In case of multiple places of effective management for an ORE, the  relevant tax authorities shall report such circumstance to their common superior  for determination.

5.The tax authority in charge of an ORE, once confirmed, shall not  be altered arbitrarily, and if alteration is indeed necessary, approval by a  competent provincial authority shall be obtained.

[Materials Required]


Materials  Name




Documents evidencing the enterprise's legal identity



A  statement on the organizational structure of the enterprise's group   and its production and operation



The  enterprise's  previous-year auditor's report issued by certified  public accountants



A  certificate of domicile of the place where the senior management in charge of  the production, operation and other issues of the enterprise perform their  duties



The  residence records of the enterprise's directors and senior management personnel  of the previous and current years



Board resolutions and minutes with respect to significant matters of  the previous and current years


[Time Limit]

1.For Taxpayers


2.For Tax Authorities

20 working days.


An Ascertainment of Resident Status of Overseas-registered  Chinese-capital Controlled Enterprise will be given by the tax authorities.

[Notice to Taxpayers]

1.Taxpayers are responsible for the authenticity and legality of  the materials they submit.

2.Taxpayers only need to visit tax authorities once if the  materials are complete and the statutory conditions for acceptance are  satisfied.


Free of charge.

(Note: The text above is a translation of the  Chinese version for reference only. In case of any discrepancy between the two  versions, the original published Chinese version shall  prevail.)