Enterprise income tax is a tax levied on the production and operation income and other income of domestic-funded enterprises and business units in China. The scope of taxpayers is greater than enterprise income tax. Taxpayers of enterprise income tax are all domestic-funded enterprises or other organizations that implement independent economic accounting in People's Republic of China (PRC) and China, including the following six categories:
(1) state-owned enterprises;
(2) Collective enterprises;
(3) private enterprises;
(4) Joint ventures;
(5) Joint-stock enterprises;
(six) other organizations with production and operation income and other income.
The object of enterprise income tax is the income obtained by taxpayers. Including sales of goods, provision of services, transfer of property, dividends, interest, rent, royalties, donations and other income.
legal ground
Article 26 The following income of an enterprise is tax-free income:
(1) Debt interest income;
(two) dividends, bonuses and other equity investment income between qualified resident enterprises;
(3) A non-resident enterprise establishes an institution or place in China, and obtains dividends, bonuses and other equity investment income actually related to the institution or place from the resident enterprise;
(4) Income of qualified non-profit organizations.
Article 3 of the Enterprise Income Tax Law: Income from dividends, bonuses and other equity investments obtained by non-resident enterprises from resident enterprises that have actual connections with institutions and places in China is also tax-free income. The "Regulations on the Implementation of the Enterprise Income Tax Law" further clarifies that dividends, bonuses and other equity investment income between eligible resident enterprises refer to the investment income obtained by resident enterprises directly investing in other resident enterprises. Dividends, bonuses and other equity investment income referred to therein do not include the investment income obtained by continuously holding shares publicly issued and listed and circulated by resident enterprises for less than 12 months. That is to say, the dividend that an enterprise holds shares of a listed company for less than 12 months needs to be taxed, and other dividends do not need to be taxed.