What taxes do foreign-invested companies need to pay?

Foreign investment needs to pay: value-added tax, urban construction tax, education surcharge, local education surcharge, stamp duty and income tax. The income from the transfer of non-monetary assets confirmed by the foreign investment of non-monetary assets by resident enterprises (hereinafter referred to as enterprises) can be included in the taxable income of the corresponding year by stages within a period of no more than five years, and the enterprise income tax can be calculated and paid according to the regulations. When an enterprise invests in non-monetary assets abroad, it shall evaluate the non-monetary assets and calculate and confirm the income from the transfer of non-monetary assets according to the fair value after deducting tax basis. Where an enterprise invests in foreign countries with non-monetary assets, it shall confirm the realization of the income from the transfer of non-monetary assets when the investment agreement comes into effect and the equity registration formalities are completed. If the investment in non-monetary assets between affiliated enterprises is not completed within 12 months after the investment agreement comes into effect, the realization of non-monetary assets transfer income will be confirmed when the investment agreement comes into effect.

Accounting methods of investment companies:

General specification

(1) In order to unify and standardize the accounting of investment companies, the Accounting Measures for Investment Companies (hereinafter referred to as the Measures) are formulated in accordance with the Accounting Law of People's Republic of China (PRC), the Regulations on Financial Accounting Reports of Enterprises, the Accounting System for Enterprises and relevant laws and regulations of the state, and in combination with the operating characteristics and actual conditions of investment companies.

(2) Enterprises established in People's Republic of China (PRC) that specialize in long-term equity investment or long-term creditor's rights investment, that is, non-financial enterprises that have not obtained financial business licenses, shall implement these Measures while implementing the enterprise accounting system.

legal ground

People's Republic of China (PRC) tax collection management law

Article 1 This Law is formulated with a view to strengthening the administration of tax collection, standardizing tax collection, safeguarding national tax revenue, protecting the legitimate rights and interests of taxpayers and promoting economic and social development.

Article 2 This Law is applicable to the collection and management of various taxes collected by tax authorities according to law.

Article 3 The collection, suspension, reduction, exemption, refund and supplementary payment of taxes shall be carried out in accordance with the law. Where the State Council is authorized by law, it shall be implemented in accordance with the administrative regulations formulated by the State Council.

No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.

Article 4 Units and individuals that are obligated to pay taxes according to laws and administrative regulations are taxpayers.

Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.