Core Viewpoint - The article discusses the tax obligations and benefits for enterprises with secondary branches, particularly focusing on the conditions under which these branches do not need to pay corporate income tax locally [2][3][4][5][6]. Tax Obligations for Secondary Branches - Small and micro enterprises recognized in the previous year do not need to allocate corporate income tax locally for their secondary branches [3]. - Newly established secondary branches are exempt from local corporate income tax allocation in the year of establishment [4]. - Secondary branches that are canceled do not need to allocate corporate income tax locally from the date of tax deregistration [5]. - Secondary branches established outside of China that do not have legal person status are also exempt from local corporate income tax allocation [6]. Tax Distribution Among Branches - The total tax allocation from the headquarters to its branches is calculated as 50% of the total corporate income tax payable by the consolidated tax-paying enterprise [7]. - The total tax allocation among all branches is also 50% of the total corporate income tax payable [7]. - The tax allocation for a specific branch is determined by its proportion of total revenue, employee compensation, and total assets, with respective weights of 0.35, 0.35, and 0.30 [7]. Eligibility for Tax Reduction Policies - Branches without legal person status must aggregate the total number of employees, total assets, and annual taxable income of the headquarters and all branches to determine eligibility for small and micro enterprise tax reduction policies [7].