How are joint ventures taxed and how are partnerships taxed?

According to the "Enterprise Income Tax Law of the People's Republic of China":

Article 3 Resident enterprises shall pay enterprise income tax on their income within and outside China.

If a non-resident enterprise establishes an institution or place in China, it shall pay enterprise income tax on the income obtained by the establishment or place in China, as well as the income that occurs outside China but has an actual connection with the institution or place established by the non-resident enterprise.

If a non-resident enterprise has not established an institution or place in China, or if it has established an institution or place but the income obtained has no actual connection with the institution or place it has established, it shall pay enterprise income tax on its income in China.

Article 4 The tax rate of enterprise income tax is 25%.

The applicable tax rate for non-resident enterprises obtaining the income provided for in paragraph 3 of Article 3 of this Law is 20%.

Article 19 The taxable income of a non-resident enterprise shall be calculated in accordance with the following methods when it obtains the income specified in Paragraph 3 of Article 3 of this Law:

1) Income from dividends, bonuses and other equity investments, as well as income from interest, rent and royalties, shall be taxable income in full amount;

2) For income from the transfer of property, the balance of the income after deducting the net value of the property in full shall be the taxable income;

Article 27 The following income of an enterprise may be exempted or reduced from enterprise income tax:

1) Income from engaging in agriculture, forestry, animal husbandry and fishery projects;

2) Income from the investment and operation of public infrastructure projects supported by the state;

3) Income from engaging in qualified environmental protection, energy conservation and water conservation projects;

4) Qualified income from technology transfer;

5) Income provided for in paragraph 3 of Article 3 of this Law.

Article 91 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China Non-resident enterprises shall be subject to enterprise income tax at a reduced rate of 10% if they obtain the income specified in Article 27 (5) of the Enterprise Income Tax Law.

How are joint ventures taxed? How are joint ventures taxed? According to the "Enterprise Income Tax Law of the People's Republic of China":

Article 3 Resident enterprises shall pay enterprise income tax on their income within and outside China. If a non-resident enterprise establishes an institution or place in China, it shall pay enterprise income tax on the income obtained by the institution or place in China, as well as the income that occurs outside China but has an actual connection with the institution or place it has established. If a non-resident enterprise has not established an institution or place in China, or if it has established an institution or place but the income obtained has no actual connection with the institution or place it has established, it shall pay the enterprise income tax on its income in China.

Article 4 The tax rate of enterprise income tax is 25%. The applicable tax rate for non-resident enterprises obtaining the income provided for in paragraph 3 of Article 3 of this Law is 20%. Article 19 The taxable income of a non-resident enterprise shall be calculated in accordance with the following methods when it obtains the income specified in Paragraph 3 of Article 3 of this Law:

1) Income from dividends, bonuses and other equity investments, as well as income from interest, rent and royalties, shall be taxable income in full amount; 2) For income from the transfer of property, the balance of the income after deducting the net value of the property in full shall be the taxable income; Article 27 The following income of an enterprise may be exempted or reduced from enterprise income tax: (1) Income from engaging in agriculture, forestry, animal husbandry, and fishery projects; (2) Income from the investment and operation of public infrastructure construction projects supported by the state; 3) Income from engaging in qualified environmental protection, energy conservation and water conservation projects; 4) Qualified income from technology transfer; 5) Income provided for in paragraph 3 of Article 3 of this Law. Article 91 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China Non-resident enterprises shall be subject to enterprise income tax at a reduced rate of 10% if they obtain the income specified in Article 27 (5) of the Enterprise Income Tax Law.

Do you understand this explanation?

According to the Notice of the Ministry of Finance and the State Administration of Taxation on Income Tax Issues of Partners of Partnership Enterprises (Cai Shui 2021 No. 159), the partners of a partnership shall distribute their taxable income according to the following principles:

1) The partners of the partnership shall determine the taxable income according to the distribution ratio agreed in the partnership agreement with the production and operation income and other income of the partnership enterprise.

2) If the partnership agreement is not stipulated or the agreement is not clear, the taxable income shall be determined according to the distribution ratio determined by the partners through consultation with all the production and operation income and other income.

3) If the negotiation fails, the taxable income shall be determined according to the proportion of the partner's paid-in capital contribution based on all production and operation income and other income.

4) If the proportion of capital contribution cannot be determined, the taxable income of each partner shall be calculated on the basis of all production and operation income and other income.

Interim Regulations of the People's Republic of China on Real Estate Tax:

Article 2 The property tax shall be paid by the owner of the property right. If the property rights belong to the whole people, they shall be paid by the units that operate and manage them. If the property rights are pawned, the pawn shall pay them.

If the owner of the property right or the pawn is not in the place where the property is located, or if the property right has not been determined and the dispute over the lease has not been resolved, the real estate custodian or user shall pay the fee.

The property owners, business management units, pawns, real estate custodians or users listed in the preceding paragraph are collectively referred to as taxpayers (hereinafter referred to as taxpayers).

Interim Regulations of the People's Republic of China on Real Estate Tax:

Article 2 The property tax shall be paid by the owner of the property right. If the property rights belong to the whole people, they shall be paid by the units that operate and manage them. If the property rights are pawned, the pawn shall pay them.

If the owner of the property right or the pawn is not in the place where the property is located, or if the property right has not been determined and the dispute over the lease has not been resolved, the real estate custodian or user shall pay the fee.

The property owners, business management units, pawns, real estate custodians or users listed in the preceding paragraph are collectively referred to as taxpayers (hereinafter referred to as taxpayers).

Interim Regulations of the People's Republic of China on Real Estate Tax:

Article 3 The real estate tax shall be calculated and paid according to the residual value of the original value of the real estate after deducting 10% to 30% at one time. The specific reduction range shall be prescribed by the people of provinces, autonomous regions, and municipalities directly under the Central Government.

If there is no original value of the property as a basis, the tax authority where the property is located shall refer to the same type of property for verification.

If the property is rented, the rental income of the property shall be used as the basis for calculating the real estate tax.

There are two types of tax payment for a partnership:

1. The legal representative partner, "income from production and manufacturing operations", or "income from dividend distribution, loan interest, and income" are subject to income tax, and the general levy rate is 25%;

2. The general partner of the general partner mainly pays two types of individual enterprise income tax, namely, business income, dividend distribution, loan interest, and income income.

The type of tax, commonly known as "tax". Tax refers to the actual tax type in a country's tax management system, which is the basic tax module. The tax paid is called the taxable income, and the proportion of the taxable income and the various taxes in the treasury is called the collection rate.

According to the different objects of taxation, the tax can be divided into different categories. Therefore, the different objects of taxation are the main signs that distinguish one type of tax from another, and the name of the tax type is generally named after the object of taxation.

For example, the type of tax that is taxed on the value-added rate is called income tax; The type of tax that is levied on resources is called resource tax, etc. Taxation refers to a standardized form of the state to participate in the distribution of social products in order to provide public goods to the society, meet the common needs of the society, and participate in the distribution of social products and obtain financial revenue without compensation in accordance with the provisions of the law. Taxation is a very important policy tool.

Compared with other distribution methods, taxation has the characteristics of mandatory, free and fixed, and is customarily called the "three natures" of taxation, mandatory, fixed and free.

The three basic characteristics of taxation are a unified whole. Among them, compulsory is a strong guarantee for the realization of free tax collection, gratuitous is the embodiment of the essence of taxation, and fixity is the inevitable requirement of compulsory and gratuitous.