(Adopted at the Fifth Session of the Tenth National People's Congress on March 6, 2007)
catalogue
Chapter I General Provisions
Chapter II Taxable Income
Chapter III Taxable Amount
Chapter IV Tax Preferences
Chapter V Withholding at Source
Chapter VI Special Tax Adjustment
Chapter VII Collection and Management
Chapter VIII Supplementary Provisions
Chapter I General Provisions
Article 1 Within the territory of People's Republic of China (PRC), enterprises and other income-earning organizations (hereinafter referred to as enterprises) are taxpayers of enterprise income tax and shall pay enterprise income tax in accordance with the provisions of this Law.
This law is not applicable to sole proprietorship enterprises and partnership enterprises.
Article 2 Enterprises are divided into resident enterprises and non-resident enterprises.
Resident enterprises mentioned in this Law refer to enterprises established in China according to law, or enterprises established in accordance with the laws of foreign countries (regions) but with actual management institutions in China.
The term "non-resident enterprise" as mentioned in this Law refers to an enterprise established in accordance with the laws of a foreign country (region). Its actual management institution is not in China, but it has institutions and places in China, or it has no institutions and places in China, but it has income from China.
Article 3 A resident enterprise shall pay enterprise income tax on its income from sources inside and outside China.
Where a non-resident enterprise establishes an institution or place in China, it shall pay enterprise income tax on the income obtained by its institution or place from China and the income generated outside China but actually related to its institution or place.
If a non-resident enterprise has no institution or place in China, or if it has an institution or place, but its income has no actual connection with its institution or place, it shall pay enterprise income tax on its income originating in China.
Article 4 The enterprise income tax rate is 25%.
The tax rate applicable to non-resident enterprises obtaining the income specified in the third paragraph of Article 3 of this Law is 20%.
Chapter II Taxable Income
Article 5 Taxable income refers to the total income of an enterprise in each tax year, the balance after deducting non-taxable income, tax-free income, various deductions and allowed losses in previous years.
Article 6 The income in monetary form and non-monetary form obtained by an enterprise from various channels shall be the total income. Including:
(1) Revenue from the sale of commodities;
(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.
Article 7 The following incomes in the total income are non-taxable income:
(1) financial allocation;
(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.
Article 8 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.
Article 9 If the public welfare donation expenditure incurred by an enterprise is less than 65,438+02% of the total annual profit, it may be deducted when calculating the taxable income.
Article 10 When calculating taxable income, the following expenses shall not be deducted:
(1) Dividends, bonuses and other equity investment income paid to investors;
(2) enterprise income tax;
(3) tax late fees;
(four) fines, fines and confiscation of property losses;
(5) Donation expenditures other than those specified in Article 9 of this Law;
(6) sponsorship expenditure;
(7) Unapproved reserve expenditure;
(eight) other expenses unrelated to income.
Article 11 The depreciation of fixed assets calculated by an enterprise according to regulations shall be deducted when calculating the taxable income.
The following fixed assets shall not be depreciated:
(1) Fixed assets other than houses and buildings that have not been put into use;
(2) Fixed assets leased by way of operating lease;
(3) Fixed assets leased by means of financial leasing;
(4) Fixed assets that have been fully depreciated and still continue to be used;
(5) Fixed assets unrelated to business activities;
(6) Land separately priced and accounted for as fixed assets;
(seven) other fixed assets that cannot be deducted from depreciation.
Article 12 The amortization expenses of intangible assets calculated by an enterprise in accordance with regulations shall be deducted when calculating taxable income.
Amortization expense deduction shall not be calculated for the following intangible assets:
(1) Intangible assets whose self-development expenses have been deducted when calculating taxable income;
(2) Self-created goodwill;
(3) Intangible assets unrelated to business activities;
(4) Other intangible assets that cannot be deducted from amortization expenses.
Article 13 When calculating the taxable income, the following expenses incurred by the enterprise shall be regarded as long-term deferred expenses, which shall be amortized in accordance with the provisions and allowed to be deducted:
(1) Expenditure on the reconstruction of fully depreciated fixed assets;
(2) expenditure on renovation of rented fixed assets;
(3) Expenditure on major repairs of fixed assets;
(4) Other expenses that should be regarded as long-term deferred expenses.
Article 14 During the period of an enterprise's foreign investment, the cost of investment assets shall not be deducted when calculating the taxable income.
Article 15 When an enterprise uses or sells inventory, the inventory cost calculated according to regulations can be deducted when calculating taxable income.
Article 16 When an enterprise transfers assets, the net asset value is allowed to be deducted when calculating the taxable income.
Article 17 When calculating and paying enterprise income tax on a consolidated basis, the losses of its overseas business institutions shall not offset the profits of its domestic business institutions.
Article 18 The losses incurred by an enterprise in a tax year may be carried forward to the following year to be made up with the income of the following year, but the longest carrying-forward period shall not exceed five years.
Article 19 When a non-resident enterprise obtains the income specified in the third paragraph of Article 3 of this Law, the calculation method of its taxable income is as follows:
(1) Income from dividends, bonuses and other equity investments, as well as interest, rent and royalties, shall be regarded as taxable income in full;
(2) For the income from the transfer of property, the taxable income shall be the balance of the net value of the property after deducting all expenses;
(3) For other income, the taxable income shall be calculated by referring to the methods specified in the preceding two paragraphs.
Article 20 The specific scope, standards of income deduction and specific measures for asset tax treatment stipulated in this chapter shall be formulated by the competent departments of finance and taxation of the State Council.
Article 21 When calculating taxable income, if the enterprise's financial and accounting treatment methods are inconsistent with the provisions of tax laws and administrative regulations, it shall be calculated in accordance with the provisions of tax laws and administrative regulations.
Chapter III Taxable Amount
Article 22 The taxable income of an enterprise multiplied by the applicable tax rate, after deducting the tax amount reduced or credited according to the preferential tax provisions of this Law, shall be the taxable amount.
Article 23 The income tax paid abroad by an enterprise on the following income may be deducted from its current taxable amount, and the credit limit is the taxable amount calculated in accordance with the provisions of this Law; The part exceeding the credit limit can be deducted from the balance after deducting the tax payable in the current year with the annual credit limit in the next five years;
(1) Taxable income obtained by resident enterprises from outside China;
(2) Non-resident enterprises set up institutions and places in China, and obtained taxable income that occurred outside China but was actually related to the institutions and places.
Article 24 The income from dividends, bonuses and other equity investments obtained by resident enterprises from foreign enterprises directly or indirectly controlled by them, as well as the part of the income tax actually paid by foreign enterprises abroad, can be used as the deductible overseas income tax of resident enterprises and credited within the credit limit stipulated in Article 23 of this Law.
Chapter IV Tax Preferences
Article 25 The state gives preferential treatment to enterprise income tax to industries and projects that are supported and encouraged by the government.
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 27 The following income of an enterprise may be exempted from or reduced from enterprise income tax:
(1) Income from agriculture, forestry, animal husbandry and fishery projects;
(two) the investment and operating income of public infrastructure projects supported by the state;
(three) income from engaging in qualified environmental protection, energy saving and water saving projects;
(4) Income from qualified technology transfer;
(5) Income as stipulated in the third paragraph of Article 3 of this Law.
Article 28 The enterprise income tax shall be levied at a reduced rate of 20% for qualified small-scale enterprises with low profits.
High-tech enterprises that need special support from the state shall be subject to enterprise income tax at a reduced rate of 15%.
Article 29 The organs of self-government of ethnic autonomous areas may decide to reduce or exempt the share of enterprise income tax payable by enterprises in ethnic autonomous areas. Where an autonomous prefecture or autonomous county decides to reduce or exempt taxes, it must report to the people's government of the province, autonomous region or municipality directly under the Central Government for approval.
Article 30 The following expenses of an enterprise may be added and deducted when calculating the taxable income:
(a) research and development expenses incurred in the development of new technologies, new products and new processes;
(two) the wages paid by the disabled and other employed persons encouraged by the state.
Thirty-first venture capital enterprises engaged in venture capital that the state needs to support and encourage can deduct the taxable income according to a certain proportion of the investment.
Thirty-second due to technological progress and other reasons, it is really necessary to accelerate the depreciation of fixed assets of enterprises, and the depreciation period can be shortened or accelerated depreciation can be implemented.
Article 33 The income earned by an enterprise from the comprehensive utilization of resources and the production of products conforming to the national industrial policies may be deducted when calculating the taxable income.
Thirty-fourth enterprises to buy environmental protection, energy saving and water saving, production safety and other special equipment investment, can implement a certain proportion of tax credit.
Article 35 The specific measures for tax incentives provided for in this Law shall be formulated by the State Council.
Article 36 the State Council may formulate special preferential policies for enterprise income tax according to the needs of national economic and social development, or if the business activities of enterprises are greatly affected due to unexpected events and other reasons, and report them to the NPC Standing Committee for the record.
Chapter V Withholding at Source
Article 37 The income tax payable by a non-resident enterprise from the income specified in the third paragraph of Article 3 of this Law shall be withheld at the source, with the payer as the withholding agent. The tax shall be withheld by the withholding agent from the paid or expired tax every time it is paid or due.
Article 38 The tax authorities may designate the payer of the project price or labor service fee as the withholding agent for the income tax payable by the non-resident enterprises engaged in the project operation and labor service within the territory of China.
Article 39 If the withholding agent fails to withhold the income tax in accordance with the provisions of Articles 37 and 38 of this Law or fails to perform the withholding obligation, it shall be paid by the taxpayer in the place where the income occurs. If the taxpayer fails to pay in accordance with the law, the tax authorities may recover the tax payable from the tax payable of the payer of other income items in China.
Article 40 The tax withheld by withholding agents each time shall be turned over to the state treasury within seven days from the date of withholding, and the enterprise income tax withholding report form shall be submitted to the local tax authorities.
Chapter VI Special Tax Adjustment
Article 41 Where the business dealings between an enterprise and its related parties do not conform to the principle of independent transactions, and the taxable income or income of the enterprise or its related parties is reduced, the tax authorities have the right to make adjustments in a reasonable way.
The costs incurred by an enterprise and its related parties in developing or transferring intangible assets or providing or accepting labor services shall be shared according to the principle of independent transaction when calculating taxable income.
Article 42 An enterprise may propose to the tax authorities the pricing principles and calculation methods for business dealings with its related parties, and the tax authorities and the enterprise shall reach an advance pricing arrangement after consultation and confirmation.
Article 43 When submitting an annual enterprise income tax return to the tax authorities, an enterprise shall attach an annual business transaction report with its affiliated parties.
When the tax authorities conduct relevant business investigations, enterprises and their related parties, as well as other enterprises related to relevant business investigations, shall provide relevant information in accordance with regulations.
Article 44 If an enterprise fails to provide information on business dealings with its affiliated parties, or the information provided is untrue and incomplete, which cannot truly reflect its affiliated business dealings, the tax authorities have the right to verify its taxable income according to law.
Article 45 If a resident enterprise established in a country (region) whose actual tax burden is obviously lower than the tax rate stipulated in the first paragraph of Article 4 of this Law or an enterprise jointly controlled by a resident enterprise and a China resident fails to distribute or reduce the profits, the part of the above profits that should belong to the resident enterprise shall be included in the current income of the resident enterprise.
Article 46 Interest expenses incurred when the ratio of creditor's rights investment and equity investment accepted by an enterprise from related parties exceeds the prescribed standard shall not be deducted when calculating taxable income.
Article 47 Where an enterprise implements other arrangements that have no reasonable commercial purpose and reduces its taxable income or income, the tax authorities have the right to make reasonable adjustments.
Article 48 The tax authorities shall make tax adjustments in accordance with the provisions of this Chapter. If it is necessary to pay back taxes, they shall pay back taxes in accordance with the provisions of the State Council and charge interest.
Chapter VII Collection and Management
Article 49 The collection and management of enterprise income tax shall, in addition to the provisions of this Law, be implemented in accordance with the provisions of the Tax Collection and Management Law of People's Republic of China (PRC).
Article 50 Unless otherwise provided by tax laws and administrative regulations, resident enterprises shall take the place where they are registered as the place of tax payment; However, if the place of registration is overseas, the place of tax payment shall be the place where the actual management institution is located.
Where a resident enterprise establishes a business organization without legal person status within the territory of China, it shall calculate and pay enterprise income tax on a consolidated basis.
Article 51 Where a non-resident enterprise obtains the income specified in the second paragraph of Article 3 of this Law, the place of tax payment shall be the place where the institution or place is located. If a non-resident enterprise establishes two or more institutions and places in China, it may choose to pay enterprise income tax from its main institutions and places upon examination and approval by the tax authorities.
Where a non-resident enterprise obtains the income specified in the third paragraph of Article 3 of this Law, the place of tax payment shall be the place where the withholding agent is located.
Article 52 Unless otherwise stipulated by the State Council, enterprises may not pay enterprise income tax in a consolidated manner.
Article 53 The enterprise income tax shall be calculated according to the tax year. The tax year begins at 65438+ 10 1 and ends at 65438+February 3 1.
If an enterprise starts or terminates its business activities in the middle of a tax year, resulting in the actual operating period of the tax year being less than 12 months, its actual operating period shall be regarded as a tax year.
When an enterprise is liquidated according to law, the liquidation period shall be regarded as a tax year.
Article 54 Enterprise income tax shall be paid in advance in monthly or quarterly installments.
An enterprise shall, within 15 days after the end of the month or quarter, submit a tax return for prepaying enterprise income tax to the tax authorities and pay taxes in advance.
The enterprise shall, within five months after the end of the year, submit the annual enterprise income tax return to the tax authorities for final settlement and settlement of the tax refund.
When an enterprise submits an enterprise income tax return, it shall attach financial and accounting reports and other relevant materials in accordance with the regulations.
Article 55 Where an enterprise terminates its business activities in the middle of a year, it shall, within 60 days from the actual date of termination, handle the final settlement of enterprise income tax for the current period with the tax authorities.
Before going through the cancellation of registration, an enterprise shall declare its liquidation income to the tax authorities and pay enterprise income tax according to law.
Article 56 The enterprise income tax paid in accordance with this Law shall be calculated in RMB. If the income is calculated in currencies other than RMB, it shall be converted into RMB for tax calculation.
Chapter VIII Supplementary Provisions
Article 57 Enterprises that have been approved to be established before the implementation of this Law and enjoy preferential tax rates in accordance with the provisions of tax laws and administrative regulations at that time may gradually transition to the tax rates stipulated in this Law in accordance with the provisions of the State Council within five years after the implementation of this Law; After the implementation of this Law, those who have enjoyed preferential treatment of regular tax reduction or exemption may continue to enjoy preferential treatment in accordance with the provisions of the State Council. However, if you do not enjoy preferential treatment because you are not profitable, the preferential period shall be counted from the year when this Law is implemented.
High-tech enterprises that need special support from the state can enjoy transitional tax concessions in specific fields established according to law for the development of foreign economic cooperation and technical exchanges, and in areas where special policies are implemented in the State Council. The specific measures shall be formulated by the State Council.
Other encouraged enterprises recognized by the state can enjoy preferential tax reduction and exemption in accordance with the provisions of the State Council.
Article 58 Where the tax agreements concluded between People's Republic of China (PRC) and foreign governments have different provisions from this Law, the provisions of the agreements shall prevail.
Article 59 the State Council shall formulate implementation regulations in accordance with this Law.
Article 60 This Law shall come into force as of June 5, 2008. 1991The Income Tax Law of People's Republic of China (PRC) for Enterprises with Foreign Investment and Foreign Enterprises adopted at the Fourth Session of the Seventh National People's Congress on April 9 and the Provisional Regulations on Enterprise Income Tax of People's Republic of China (PRC) promulgated by the State Council on February 3 shall be abolished at the same time.