Enterprise income tax is not the total profit multiplied by the tax rate. The taxable amount of enterprise income tax is the balance of the taxable income multiplied by the tax rate, and then the tax amount reduced, exempted or credited. Taxable income refers to the total income of the current year, after deducting non-taxable income, tax-free income, various deductions and allowing to make up for the losses of previous years.
Legal objectivity:
Article 3 of the Individual Income Tax Law of People's Republic of China (PRC): (1) For comprehensive income, the excess progressive tax rate of 3% to 45% is applicable (the tax rate table is attached); (2) For operating income, the excess progressive tax rate of 5% to 35% shall apply (the tax rate table is attached); (3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to the proportional tax rate of 20%.