Law of the People's Republic of China on Enterprise Income Tax
Law of the People's Republic of China on Enterprise Income Tax
Law of the People's Republic of China on Enterprise Income Tax
Order of the President [2007] No. 63
March 16, 2007
(Adopted at the 5th Session of the 10th National People's Congress on March 16, 2007, promulgated by Order No. 63 of the President of the People's Republic of China on March 16, 2007 and effective as of January 1, 2008)
Chapter I General Provisions
Chapter II Taxable Income
Chapter III Payable Tax
Chapter IV Preferential Tax Treatment
Chapter V Tax Withheld at Source
Chapter VI Special Tax Payment Adjustment
Chapter VII Administration of Tax Levying and Collection
Chapter VIII Supplementary Provisions
Chapter I General Provisions
Article 1 Enterprise income tax payers shall be enterprises within the People's Republic of China 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 set up in accordance with the law of the foreign country (region) whose actual administration institution is outside China, but have set up institutions or establishments in China or, without institutions or establishments set up in China, have income originating from China.
Article 3 Resident enterprises shall pay enterprise income tax in relation to their income originating both within and outside China.
Non-resident enterprises that have set up institutions or establishments in China shall pay enterprise income tax in relation to income originating from China obtained by the set up institutions or establishments, and income occurring outside China but having an actual connection with the set up institutions or establishments.
Non-resident enterprises that have not set up institutions or establishments in China, or have set up institutions or establishments but the income obtained by the said enterprises has no actual connection with the set up institutions or establishments, shall pay enterprise income tax in relation to their income originating from China.
Article 60 This Law shall come into effect as of January 1, 2008.
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