How do subsidiaries and parent companies pay taxes?

The parent company and subsidiaries pay enterprise income tax at the rate of 25%. 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.

legal ground

Article 14 of the Company Law of People's Republic of China (PRC) * * A company may set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law. Article 5 of the Enterprise Income Tax Law of People's Republic of China (PRC) refers to the total income of an enterprise in each tax year, after deducting non-taxable income, tax-free income, various deductions and allowed losses in previous years.