PRC Enterprise Income Tax Law

中华人民共和国企业所得税法

April 02, 2007 | BY

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Enterprise income tax rate for both FIEs and domestic companies set at 25%.

Clp Reference: 3230/07.03.16 Promulgated: 2007-03-16 Effective: 2008-01-01

Promulgated: March 16 2007
Effective: January 1 2008

Applicability: For the purposes of this Law, the term "tax-resident enterprise" means an enterprise that is established in China in accordance with the law or an Enterprise that is established in accordance with the law of a foreign country (or region) but whose actual management organization is in China.

For the purposes of this Law, the term "non-tax-resident enterprise" means an enterprise that is established in accordance with the law of a foreign country (or region) and whose actual management organization is not in China but has an establishment in China, or, although it does not have an establishment in China, it has China-sourced income.

Main Contents: The Law set the enterprise income tax rate at 25%. A tax-resident enterprise shall pay enterprise income tax on both its China-sourced and foreign-sourced income. If a non-tax-resident enterprise has an establishment in China, it shall pay enterprise income tax on the China-sourced income of its establishment and on its income derived abroad that is actually connected with its establishment. If a non-tax-resident enterprise does not have an establishment in China, or if it has an establishment in China but its income is not actually connected with such establishment, it shall pay enterprise income tax on that of its income sourced in China.

Related Legislation: PRC Law on the Administration of the Levy and Collection of Taxes, (Revised in April 2001), Apr 28 2001, CLP 2001 No.5 p.12 & CLP 1995 No.3 p.12

Repealed Legislation: PRC Income Tax Law on Foreign-invested Enterprises and Foreign Enterprises, Apr 9 1991, CLP 1991 No.3 p.25 and PRC Tentative Regulations on Enterprise Income Tax, Dec 13 1993, CLP 1994 No.1 p.9

clp reference:3230/07.03.16prc reference:中华人民共和国主席令 (十届第 63 号)promulgated:2007-03-16effective:2008-01-01

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