The corporate income tax rate is 25%. If a non-resident enterprise has no institution or place in China, or if it has an institution or place, but its income is not actually related to its institution or place, the applicable tax rate is 20%. Taxable income is the total income of an enterprise in each tax year, after deducting non-taxable income, tax-free income, various deductions and losses allowed to make up in previous years. The income obtained by enterprises from various channels in monetary and non-monetary forms is the total income. Including: (1) income from sales of goods; (2) Income from providing labor services; (3) Income from property transfer; (four) dividends, bonuses and other equity investment income; (5) Interest income; (6) Rental income; (7) Royalty income; (8) Receiving donation income; (9) Other income. The following income from the total income is non-taxable income: (1) financial appropriation income; (2) Administrative fees and government funds collected according to law and incorporated into financial management; (3) Other non-taxable income as stipulated by the State Council. Reasonable expenses related to income actually incurred by an enterprise, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income.
Legal analysis
Article 15 of the Law of People's Republic of China (PRC) on the Administration of Tax Collection, enterprises, branches engaged in production and operation, individual industrial and commercial households and institutions engaged in production and operation (hereinafter referred to as taxpayers engaged in production and operation) established in other places and places shall, within 30 days from the date of obtaining the business license, report to the tax authorities for tax registration with relevant documents. The tax authorities shall register the declaration on the day it is received and issue a tax registration certificate. The administrative department for industry and commerce shall regularly notify the tax authorities of the registration and issuance of business licenses. The scope and methods for taxpayers other than those specified in the first paragraph of this article to register tax and withholding agents to register tax withholding shall be stipulated by the State Council.