Legal basis: Regulations on the Implementation of Enterprise Income Tax Law of People's Republic of China (PRC).
Article 7 The income from sources inside and outside China mentioned in Article 3 of the Enterprise Income Tax Law shall be determined according to the following principles: (1) The income from the sale of goods shall be determined according to the place where the transaction takes place; (2) The income from providing labor services shall be determined according to the place where the labor services occur; (3) Income from property transfer, income from real estate transfer shall be determined according to the location of real estate, income from movable property transfer shall be determined according to the location of the enterprise, institution or place where movable property is transferred, and income from equity investment assets transfer shall be determined according to the location of the invested enterprise; (four) dividends, bonuses and other equity investment income, according to the location of income distribution enterprises to determine; (5) Income from interest, rent and royalties shall be determined according to the location of the enterprise, institution or place that undertakes or pays the income, or according to the domicile of the individual who undertakes or pays the income; (six) other income determined by the competent departments of finance and taxation of the State Council. Therefore, the business takes place completely abroad and there is no need to pay enterprise income tax.