The production, operating income and other income of the branches of a joint venture in and outside China shall be paid by the head office. Article 2 The total income of a joint venture in each tax year, after deducting costs, expenses and losses, is the taxable income. Article 3 The income tax rate of a joint venture is 30%. In addition, the local income tax of 10% is levied according to the income tax payable.
The income tax rate of joint ventures that exploit oil, natural gas and other resources shall be stipulated separately. Article 4 When the foreign party of a joint venture remits enterprise profits abroad, it shall pay income tax of 10% of the remitted amount. Article 5 A newly established joint venture with a joint venture period of more than 10 years shall be exempted from income tax in the first year after the application of the enterprise and the approval of the tax authorities, and the income tax shall be reduced by half in the second and third years.
Joint ventures with low profits such as agriculture and forestry and joint ventures located in economically underdeveloped remote areas may continue to reduce the income tax by/kloc-0.5% to 30% after the expiration of the tax reduction or exemption period in accordance with the provisions of the preceding paragraph, with the approval of People's Republic of China (PRC) and the Ministry of Finance. Article 6. If the joint venture reinvests its profits from China enterprises for a period of not less than five years, 40% of the income tax paid on the reinvested part may be refunded upon the application of the joint venture and the approval of the tax authorities. If the investment has been withdrawn for less than five years, the tax refund will be refunded. Article 7 When an annual loss occurs in a joint venture, it may withdraw the corresponding amount from the income of the next year to make up for it; If the income in the next year is insufficient to make up for it, the income can be extracted year by year to continue to make up for it, but the longest period shall not exceed five years. Article 8 The income tax of a joint venture shall be levied annually and paid in advance quarterly. Pay in advance within fifteen days after the end of each quarter, and make final settlement within three months after the end of each year, and refund more and make up less. Article 9 A joint venture shall, within the time limit for each advance payment of income tax, submit a declaration form for advance payment of income tax to the local tax authorities; Submit the annual income tax return and final accounting report within three months after the end of the year. Article 10 The income tax of a joint venture shall be calculated in RMB. If the income is in foreign currency, it shall be converted into RMB according to the foreign exchange quotation published by People's Republic of China (PRC) and the State Administration of Foreign Exchange. Article 11 After registering with the State Administration for Industry and Commerce of People's Republic of China (PRC), a joint venture shall go through the tax registration with the local tax authorities with relevant certificates within 30 days. Article 12 The tax authorities have the right to inspect the financial, accounting and tax payment of a joint venture. A joint venture must truthfully declare and provide relevant information, and may not refuse or conceal it. Article 13 A joint venture must pay taxes within the prescribed time limit. If it fails to pay within the time limit, the tax authorities shall, in addition to paying within the time limit, impose a late fee of 0.5% of the overdue tax on a daily basis from the date of delay. Article 14 Where a joint venture violates the provisions of Articles 9, 11 and 12 of this Law, the tax authorities may impose a fine at their discretion.
If a joint venture evades taxes or refuses to pay taxes, the tax authorities may, in addition to recovering taxes, impose a fine of less than five times the amount of tax payable according to the seriousness of the case. If the circumstances are serious, the local people's court shall handle it according to law. Article 15 When there is a dispute between a joint venture and the tax authorities on the issue of tax payment, they must first pay taxes in accordance with regulations, and then apply to the higher tax authorities for reconsideration. If you are not satisfied after reconsideration, you may bring a lawsuit to the local people's court. Article 16 The income tax paid by a joint venture and its overseas branches may be deducted from the income tax payable by the head office.
If there is an agreement between the government of People's Republic of China (PRC) and foreign governments to avoid double taxation, the income tax credit shall be handled in accordance with the provisions of the agreement. Article 17 The detailed rules for the implementation of this Law shall be formulated by People's Republic of China (PRC) and the Ministry of Finance. Article 18 This Law shall come into force as of the date of promulgation.