Article 2 of the Enterprise Income Tax Law of People's Republic of China (PRC) stipulates that a non-resident enterprise refers to an enterprise established in accordance with the laws of a foreign country (region), whose actual management institution is not in China, but has institutions and places in China, or has no institutions or places in China, but has income from China. Paragraph 3 of Article 3 stipulates that if a non-resident enterprise has not established an institution or place in China, or if it has established an institution or place, its income has no actual connection with the institution or place it has established, it shall pay enterprise income tax on its income originating in China. It can be seen that foreign companies that have business dealings with your company are non-resident enterprises that have no institutions or places in China, and should pay enterprise income tax on their income from China.
Article 37 of the Enterprise Income Tax Law of People's Republic of China (PRC) stipulates that the income tax payable by non-resident enterprises on the income stipulated 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.
The Regulations for the Implementation of the Enterprise Income Tax Law stipulates that taxpayers refer to units or individuals that have the obligation to directly pay relevant funds to non-resident enterprises in accordance with relevant laws or contracts.