backgrounder企业所得税法英文版

2021年1月19日发(作者：整饬)
The Law of the People
’
s Republic of China on Enterprise Income Tax
中华人民共和国企业所得税法


Order of the President [2007] No.63

16 March, 2007

(Adopted at the 5th Session of the 10th National People
’
s Congress on 16 March 2007, promulgated by
Order No. 63 of the President of the People
’
s Republic of China and effective as of 1 January 2008)



Table of Content

Chapter One: General Provisions
Chapter Two: Taxable Income
Chapter Three: Payable Tax
Chapter Four: Preferential Tax Treatment
Chapter Five: Tax Withheld at Source
Chapter Six: Special Tax Payment Adjustment
Chapter Seven: Administration of Tax Levying and Collection
Chapter Eight: Supplementary Provisions

Chapter One: General Provisions

Article
1:
Taxpayers
of
enterprise
income
tax
shall
be
enterprises
and
other
organizations
that
obtain
income
within
the
People
’s
Republic
of
China
(hereinafter
referred
to
as
“Enterprises”)
and
shall
pay
enterprise income tax in accordance with the provisions of this Law.
This Law shall not apply to wholly individually-owned enterprises and partnership enterprises.

Article 2: Enterprises are divided into resident enterprises and non-resident enterprises.
For the purposes of this Law, the term “resident enterprises” shall refer to Enterprises that are set up in
China
in
accordance
with
the
law,
or
that
are
set
up
in
accordance
with
the
law
of
the
foreign
country
(region) whose actual administration institution is in China.
For the purposes of this Law, the term “non
-
resident enterprises” shall refer to Enterprises that are se
t up in
accordance with the law of the foreign country (region) whose actual administration institution is outside
China, but they have set up institutions or establishments in China or they have income originating from
China without setting up institutions or establishments in China.

Article 3: Resident enterprises shall pay enterprise income tax originating both within and outside China.
Non-resident enterprises that have set up institutions or premises in China shall pay enterprise income tax
in relation to the income originating from China obtained by their institutions or establishments, and the
income incurred outside China but there is an actual relationship with the institutions or establishments set
up by such enterprises.
Where
non-resident
enterprises
that
have
not
set
up
institutions
or
establishments
in
China,
or
where
institutions or establishments are set up but there is no actual relationship with the income obtained by the
institutions or establishments set up by such enterprises, they shall pay enterprise income tax in relation to
the income originating from China.

Article 4: The rate of enterprise income tax shall be 25%.
Non-resident enterprises that have obtained income in accordance with the provisions of Paragraph Three
of Article 3 hereof, the applicable tax rate shall be 20%.


Chapter Two: Taxable Income

Article 5: The balance derived from the total income in each taxable year of Enterprises, after deduction of
the non- taxable income, tax exempted income, other deductions and the making up of losses of previous
years shall be the taxable income.

Article 6: Income obtained by Enterprises from various sources in monetary and non-monetary terms shall
be the total income, including:
from sale of goods;
from provision of labour services;
from transfer of property;
from equity investment such as dividend and bonus;
st income;
income;
from royalties;
from donations; and
income.

Article 7: The following income from the total income shall not be taxable:
ial funding;
strative fees and government funds obtained and included in financial management in accordance
with the law; and
non-taxable income prescribed by the State Council.

Article
8:
Reasonable
expenses
that
are
relevant
to
the
income
actually
incurred
and
obtained
by
Enterprises, including costs, fees, tax payments, losses and other fees may be deducted from the taxable
income.

Article 9: In relation to the expenses from charitable donations incurred by Enterprises, the portion within
12% of the total annual profit may be deducted from the taxable income.

Article 10: The following expenses may not be deducted from the taxable income:
from equity investment paid to investors such as dividend and bonus;
t of enterprise income tax;
payment fines;
ies; fines and losses from confiscated property;
es from donations other than those prescribed in Article 9 hereof;
rship fees;
es for non-verified provisions; and
expenses irrelevant to the income obtained.

Article 11: Where Enterprises compute the taxable income, the depreciation of fixed assets calculated in
accordance with provisions may be deducted.
No depreciation may be deducted for the following fixed assets:
assets other than premises and buildings that have not yet been used;
assets leased from other parties by means of business lease;
assets leased to other parties by means of lease financing;
assets that have been depreciated in full but are still in use;
assets that are irrelevant to business activities;
credited as fixed assets after independent price valuation;
fixed assets whose depreciation may not be calculated.

Article 12: In Enterprises compute the taxable income, the amortization of intangible assets calculated in
accordance with provisions may be deducted.
The amortization of the following intangible assets may not be deducted:
fees for self development of intangible assets that have been deducted from the taxable income;
-created goodwill;
ible assets that are irrelevant to business activities; and
intangible assets whose amortization fee may not be calculated.

Article 13: Where Enterprises calculate taxable income, the following expenses incurred by Enterprises as
long-term fees to be amortized and that are amortized in accordance with provisions may be deducted:
truction expenses for fixed assets that have been depreciated in full;
truction expenses for fixed assets leased from other parties;
repair expenses of fixed assets; and
expenses that shall be treated as long-term amortization fees.

Article 14: During the period when Enterprises invest outside the territory, the cost of investment in assets
may not be deducted from the taxable income.

Article
15:
The
inventory
used
or
sold
by
Enterprises
whose
cost
is
calculated
in
accordance
with
provisions may be deducted from the taxable income.

Article
16:
Where
Enterprises
transfer
assets,
the
net
value
thereof
may
be
deducted
from
the
taxable
income.

Article
17:
Where
Enterprises
compute
the
consolidated
enterprise
income
tax,
the
losses
of
business
institutions outside the territory may not be offset by the profits of business institutions inside the territory.

Article
18:
Where
there
is
a
loss
in
a
taxable
year
of
Enterprises,
it
may
be
brought
forward
to
the
succeeding years and made up by the income of succeeding years, but the limit of bringing forward may
not exceed five years.

Article 19: Where non-resident enterprises obtain income provided in Paragraph Three of Article 3 hereof,
the taxable income shall be calculated in accordance with the following methods:

from
equity
investment
such
as
dividend
and
bonus
and
interest
income,
rental
income
and
royalties, the total income shall be the taxable income;
from property transfer, the balance derived from the deduction of net asset value from the total
income shall be the taxable income;
income whose taxable income shall be calculated with reference to the previous two methods.

Article
20:
The
income,
specific
scope
and
standard
of
deduction
and
the
specific
method
of
taxation
treatment of assets prescribed in this Chapter shall be provided by the departments in charge of finance
and taxation under the State Council.

Article
21:
In
computing
the
taxable
income,
where
financial
and
accounting
treatment
methods
of
Enterprises
are
inconsistent
with
tax
laws
and
administrative
regulations,
such
taxable
income
shall
be
computed in accordance with tax laws and administrative regulations.


Chapter Three: Payable Tax

Article
22:
The
taxable
income
of
Enterprises
shall
be
the
balance
derived
from
the
taxable
income
of
Enterprises
multiplies
the
applicable
rate
and
minus
the
tax
amount
of
tax
reduction
and
exemption
pursuant to the preferential tax treatment hereof.

Article 23: The income tax that has been paid outside the territory for the following income obtained by
Enterprises may be offset from the payable tax of the current period. The offset limit is the payable tax
calculated
in
accordance
with
provisions
hereof
in
respect
of
the
income
of
such
item,
the
portion
in
excess of the offset limit may be made up by the balance of the offset amount of the current year out of the
annual offset limit within the next five years:
taxable income originating outside China by resident enterprises;

taxable
income
incurred
outside
China
that
is
obtained
by
institutions
or
establishments
of
non-resident enterprises set up in China with an actual relationship with such institution or establishment.

Article
24:
Where
income
from
equity
investment
such
as
dividend
and
bonus
originating
outside
the
territory of China is shared by foreign enterprises directly or indirectly controlled by resident enterprises,
the portion undertaken by foreign enterprises in the actual income tax actually paid outside the territory by
foreign enterprises may be offset in the offset limit prescribed in Article 23 hereof as the income tax that
may be offset outside the territory by such resident enterprises.


Chapter Four: Preferential Tax Treatment