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  • In accordance with the provisions of Enterprise Income Tax Law of the Peoples Republic of China, enterprise income tax islevied on the income derived by enterprises and other organizations within the territory of the Peoples Republic of China. Enterprise income tax is calculated based on the taxable income of taxpayers. Resident enterprises and non-resident enterprises that have an establishment or a place in China and derive income effectively connected with the aforesaid establishment or place are subject to a standard tax rate of 25 percent. Where a non-resident enterprise has no establishment or place in China, or it has an establishment or a place in China but the income derived is not effectively connected with the aforesaid establishment or place, it shall pay enterprise income tax on the portion of its income sourced from inside China and the applicable tax rate shall be 20 percent. For non-resident enterprises who are in compliance with Article 27 of Enterprise Income Tax Law and Article 91 of Implementation Regulations for Enterprise Income Tax Law, a reduced tax rate of 10 percent shall apply.