China’s Corporate Income Tax Law: Taxpayers
China’s Corporate Income Tax Law: Taxpayers
In the PRC, the currently existing law governing corporate income tax is the Corporate Income Tax Law of the PRC (the “Law”) that came into effect on January 1, 2008, which is also the basis for government regulations in this respect.
According to the Law, taxpayers of corporate income tax include almost all resident and non-resident enterprises, excluding sole proprietorships and partnerships, which should pay individual income tax in order to avoid double taxation.
A resident enterprise defined in the Law refers to an enterprise established within the territory of the PRC in accordance with the law of the PRC or established in accordance with the law of a foreign country (region) and with a managing body within the territory of the PRC. A resident enterprise shall pay corporate income tax on its income from sources within and outside the PRC.
A non-resident enterprise defined in the Law refers to an enterprise established in accordance with the law of a foreign country (region) and with its actual managing body outside of China, but with a branch or premise within the territory of the PRC, or without a branch or premise within the territory of the PRC but with income from sources in the PRC.
If a non-resident enterprise has a branch or premise within the territory of the PRC, it shall pay corporate income tax on the income obtained by such branch or premise within the territory of the PRC and the income from outside the territory of the PRC but actually related to its branch or premise.
If a non-resident enterprise does not have a branch or premise within the territory of the PRC, or has a branch or premise within the territory of the PRC but its income is not actually related to such branch or premise, it shall pay corporate income tax on its income from sources in the PRC.
Robert Zhang 
Steve Li 