FY2024 Company Income Tax Declaration Guide: Compliance Filing and Optimization Strategies

With the last two weeks of May remaining, the FY2024 Company Income Tax (CIT) Return (also known as CIT Annual Filing) is approaching completion.

Why is CIT Annual Filing Crucial?

CIT Annual Filing is an obligation stipulated by law, and it is also an important part of company tax management. Through standardized operations, companies can:

Avoid Tax Risks

Ensure that the tax declaration is consistent with the actual operational data, and avoid late payment fees, fines, and other economic losses caused by declaration errors.

Optimize Tax Costs

Comprehensively sort out taxable income, identify potential problems, and reduce unnecessary tax expenses.

Making Full Use of Tax Incentives

Policies such as additional deduction for R&D expenses and reduction and exemption for high-tech companies, effectively reduce tax burden and enhance market competitiveness.

Enhance the Level of Financial Management

Through the preparation of annual financial statements and tax adjustments, further improve the financial system to ensure the healthy development of companies.

Which company needs to do the CIT Annual Filing?

According to the Company Income Tax Law and its implementation rules, the following taxpayers are required to complete the CIT Annual Filing within the specified period:

• Companies engaged in production and operation (including trial operation) during the tax year;
• Companies that terminate their business activities during the year;

Regardless of profit or loss and whether they enjoy tax incentives, they are all required to make declarations in accordance with the law.

Key Time Nodes

Companies in normal operation: from January 1 to May 31, 2025

Companies that terminate their operations in the middle of the year (e.g., dissolution, bankruptcy, etc.): the declaration needs to be completed within 60 days after the actual termination of operations.

Materials Required for Declaration

To ensure a smooth declaration, companies need to prepare the following materials:

1. Company Income Tax annual tax return and annex;
2. Financial statements;
3. Materials related to filing matters (e.g., certificate of tax incentives);
4. Tax-related information regarding head office and branches (if applicable);
5. Reporting form for related business transactions (if related transactions are involved);
6. Agent declaration documents (e.g., entrusting intermediaries);
7. Other supplementary materials required by the tax authorities.

Conclusion

Special reminder: Companies that have not yet declared should start preparation immediately! Companies that have already declared are advised to review the accuracy of their data. Complex businesses may consider seeking support from professional organizations.

Within the final filing deadline, we suggest companies prioritize ensuring the timeliness and accuracy of basic declarations, focus on checking the applicability of tax incentives, and improve the filing of relevant supporting materials.

For more detailed modifications to the application forms, please refer to the official site of the State Administration of Taxation.

If you need assistance or further explanation, please contact us.