How to determine the subject of income tax and the applicable tax rate of foreign invested enterpris

Chapter VII Enterprise Income Tax Law.

Section 2 The main legal provisions of enterprise income tax.

1. Subject and object of taxation.

1) Taxpayers.

According to the law, enterprises within the territory of China, foreign-invested enterprises and foreign enterprises shall pay income tax on their production, business income and other income in accordance with the law. Domestic enterprise income tax payers include: (1) state-owned enterprises; (2) collective enterprises; (3) private enterprises; (4) associates; (5) Joint-stock enterprises; (6) Other organizations with income from production, business and other income.

2) The object of taxation.

The Regulations on Enterprise Income Tax stipulate that the income from production, operation and other incomes of enterprises, including income within and outside China, are the objects of taxation.

Note! In July 2002, the exam topic was "What is the object of taxation of China's enterprise income tax".

2. Tax rate. The Corporate Income Tax Ordinance generally provides for a proportional tax rate of 33% and a preferential tax rate of 27% or 18%.

3. Calculation of taxable income and income tax payable.

The "Regulations on Enterprise Income Tax" stipulates that the balance of the total income of the taxpayer in each tax year after deducting the allowable deduction items is the taxable income, and the taxable income is multiplied by 33% to obtain the income tax payable, and the calculation formula is: income tax payable = taxable income tax rate.

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Enterprise Income Tax Knowledge] The collection and management of income tax of foreign-invested enterprises and foreign enterprisesThe tax authorities collect, manage and inspect the taxpayers who have the obligation to pay the income tax of foreign-invested enterprises and foreign enterprises in accordance with the provisions of the tax law and management authority. This is embodied in the following aspects:

1) Within 30 days after the industrial and commercial registration, the tax registration enterprise shall go through the tax registration with the local tax authority; When a foreign-invested enterprise establishes or withdraws a branch outside China, it shall, within 30 days from the date of establishment or revocation, go through tax registration, alteration or cancellation of registration with the local tax authorities; In the event of relocation, reorganization, merger, division, termination, change of capital amount, business scope and other major registration matters, an enterprise shall, within 30 days after the industrial and commercial change registration or before the cancellation of registration, go through the change of registration or cancellation of registration with the relevant Huaixiang certificate to the local tax authorities.

2) Tax Declaration: Foreign-invested enterprises and establishments established by foreign enterprises engaged in production and business operations within the territory of China, regardless of profits or losses during the tax year, shall submit the prepaid income tax return to the local tax authorities within the time limit of each prepayment of income tax, and submit the annual income tax return and accounting statement within 4 months after the end of the year, and the audit report of the Chinese certified public accountant shall be attached unless otherwise stipulated by the state; If a foreign enterprise establishes two or more business establishments in China, it may select one of the business establishments to declare and pay income tax on a consolidated basis. At the time of liquidation, the enterprise shall submit the enterprise liquidation income tax return and relevant financial accounting statements and other materials to the local tax authorities before the cancellation of industrial and commercial registration. If an enterprise fails to submit its income tax return and accounting statements within the time limit prescribed by the tax law due to special reasons, it shall submit an application within the submission period, and the filing period may be appropriately extended with the approval of the local competent tax authority.

3) Tax payment and payment of enterprise income tax and local income tax, the implementation of annual calculation, quarterly prepayment, year-end final settlement and payment. Prepayment within 15 days after the end of the quarter, final settlement within 5 months after the end of the year, excess refund and deficiency compensation; If a foreign enterprise has not established an institution or place in China, but has obtained profits, interest, rent, royalties and other income in China, or has established an institution or place, but the above-mentioned income has no actual connection with its institution or place, it shall pay 20% income tax, with the payer as the withholding agent, and the tax shall be withheld from the amount paid each time.

Foreign investment refers to private direct investment made by foreign companies, enterprises, other economic organizations or individuals within the territory of the People's Republic of China in accordance with the provisions of the laws of the People's Republic of China. At present, the types of taxes that are not applicable to foreign-invested enterprises: urban maintenance and construction tax, education surcharge According to the relevant provisions of China's tax law, the main types of taxes involved in foreign-invested enterprises are as follows:

1. Income tax of foreign-invested enterprises and foreign enterprises; 2. Value-added increase; 3. Consumption tax; 4. Business tax; 5. Tariffs; 6. License plate use tax; 7. Real estate tax; 8. Land Appreciation Tax; 9. Resource tax.

Article 2 of the Law of the People's Republic of China on Cultivated Land Occupation Tax of the People's Republic of China Units and individuals that occupy cultivated land within the territory of the People's Republic of China to construct buildings and structures or engage in non-agricultural construction shall be taxpayers of cultivated land occupation tax and shall pay cultivated land occupation tax in accordance with the provisions of this Law. Those who occupy cultivated land to construct farmland water conservancy facilities shall not pay cultivated land occupation tax. "Cultivated land" as used in this Law refers to land used for growing crops.

Legal Analysis: The Income Tax Law of Foreign-invested Enterprises refers to the income from the production, operation and other income of foreign-invested enterprises within the territory of the People's Republic of China, which shall be paid in accordance with the provisions of this Law. Within the territory of the People's Republic of China, foreign enterprises shall pay income tax on their production and business income and other income in accordance with the provisions of this Law.

Legal basis: Income Tax Law of the People's Republic of China on Foreign-invested Enterprises and Foreign Enterprises

Article 1: Income tax shall be paid in accordance with the provisions of this Law on the income from production and business operations of foreign-invested enterprises within the territory of the People's Republic of China and other such income. Within the territory of the People's Republic of China, foreign enterprises shall pay income tax on their production and business income and other income in accordance with the provisions of this Law.

Article 2: "Foreign-invested enterprises" as used in this Law refers to Sino-foreign joint ventures, Sino-foreign cooperative joint ventures, and foreign-funded enterprises established within mainland China. For the purposes of this Law, the term "foreign enterprises" refers to foreign companies, enterprises and other economic organizations that have established institutions or places within the territory of China, engaged in production and business operations, and have income from the territory of China even though they have not established institutions or places.

Article 3: Foreign-invested enterprises with their head offices located within the territory of China shall pay income tax on their income within and outside China. Foreign enterprises pay income tax on their income in China.

Law of the People's Republic of China on the Administration of Tax Collection

Article 1 This Law is enacted for the purpose of strengthening the administration of tax collection, standardizing the collection and payment of taxes, safeguarding state tax revenues, protecting the legitimate rights and interests of taxpayers, and promoting economic and social development.

Article 2 This Law shall apply to the collection and management of all kinds of taxes collected by the tax authorities in accordance with the law.

Article 3 The levy and suspension of taxation, as well as tax reduction, exemption, tax refund and tax compensation, shall be carried out in accordance with the provisions of the law; Where the law authorizes ***, it shall be implemented in accordance with the provisions of the administrative regulations formulated by ***.

No organ, unit, or individual may violate the provisions of laws and administrative regulations by making decisions on tax collection, suspending, tax reduction, tax exemption, tax refund, tax compensation, or other decisions that contradict tax laws and administrative regulations.

Article 4 Units and individuals that are liable to pay taxes as stipulated by laws and administrative regulations are taxpayers.

Units and individuals that are required by laws and administrative regulations to withhold and remit, collect and remit taxes are withholding agents. Taxpayers and withholding agents must pay, withhold, collect and remit taxes in accordance with the provisions of laws and administrative regulations.

Taxpayers of income tax for foreign-invested enterprises and foreign enterprises include foreign-invested enterprises engaged in production, operation and other income within the territory of China.

Foreign-invested enterprises include Sino-foreign joint ventures, Sino-foreign cooperative joint ventures and foreign-funded enterprises established in China.

Foreign enterprises, including those that have set up institutions and places in China, are engaged in production and operation, and although they have not set up institutions and places in China, they have the best in China.

Foreign companies, enterprises and other economic organizations with domestic income.