China’s Corporate Income Tax Law: 锚点锚点Collection
The balance of the total income of an enterprise in each tax year, after deducting non-taxable income, tax-free income, various deductions, and losses allowed in previous years, is its taxable income. The balance of the taxable income of an enterprise multiplied by the applicable tax rate, minus the amount of tax deducted, exempted or credited in accordance with the Corporate Income Tax Law on tax incentives, is its taxable income.
The income taxes that have been paid overseas for the following income items obtained by an enterprise may be deducted from its current tax payable, with the credit limit being the tax payable calculated for that income item in accordance with the Corporate Income Law, and the amount exceeding the credit limit may be offset year by year within the next 5 years using the balance of each year's credit limit to offset the current year's deductible tax amount:
(1) The taxable income from sources outside the PRC in case of a resident enterprise; and
(2) The taxable income from sources outside the PRC but actually related to its branch or premise within the territory of the PRC in case of a non-resident enterprise.
Dividends, bonuses, and other income items derived from equity investment of a resident enterprise received from a foreign enterprise under its direct or indirect control, and the portion of the income tax actually paid by such a foreign enterprise overseas attributable to such income items, may be deducted as a deductible overseas income tax of such resident enterprise within the credit limit stipulated in Article 23 of the Corporate Income Tax Law.
Practising lawyers
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Robert Zhang
An international lawyer registered in Shanghai, China. Master's degreePublish…
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Steve Li
An international lawyer registered in Shanghai, China. Master's degreePublish…
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