Foreign investment refers to the private direct investment made by foreign companies, enterprises, other economic organizations or individuals in People's Republic of China (PRC) according to the laws of People's Republic of China (PRC). The following is the 20 17 income tax law for foreign-invested enterprises compiled by me. Welcome to read!

20 17 income tax law for foreign-invested enterprises

Article 1 Income from production, business operation and other income of foreign-invested enterprises in People's Republic of China (PRC) shall be subject to income tax in accordance with the provisions of this Law.

Within the territory of People's Republic of China (PRC), the income from production, business operations and other income of foreign enterprises shall be subject to income tax in accordance with the provisions of this Law.

Article 2 Foreign-invested enterprises mentioned in this Law refer to Chinese-foreign equity joint ventures, Chinese-foreign cooperative ventures and foreign-funded enterprises established within the territory of China.

Foreign enterprises mentioned in this Law refer to foreign companies, enterprises and other economic organizations that have set up institutions and places in China to engage in production and business operations, but have income from China, although they have no institutions or places.

Article 3 The head office of a foreign-invested enterprise is located in the territory of China, and it pays income tax on income from sources inside and outside China. Foreign enterprises pay income tax on income from China.

Article 4 The taxable income shall be the total income of enterprises with foreign investment and institutions and places engaged in production and business operations established by foreign enterprises within the territory of China in each tax year, and the balance after deducting costs, expenses and losses.

Article 5 The enterprise income tax payable by foreign-invested enterprises and foreign enterprises on the income of institutions and places established in China for production and business operations shall be calculated according to the taxable income, and the tax rate shall be 30%; Local income tax is calculated according to taxable income, and the tax rate is 3%.

Article 6 The State shall, in accordance with industrial policies, guide the direction of foreign investment and encourage the establishment of foreign-invested enterprises that adopt advanced technology and equipment and export all or most of their products.

Article 7 Foreign-invested enterprises in special economic zones, foreign enterprises that set up institutions and places in special economic zones to engage in production and operation, and productive foreign-invested enterprises in economic and technological development zones shall be subject to enterprise income tax at the reduced rate of 15%.

Productive foreign-invested enterprises located in coastal economic open zones and old urban areas of cities where special economic zones and economic and technological development zones are located shall be subject to enterprise income tax at a reduced rate of 24%.

Enterprises with foreign investment located in the old urban areas of cities where coastal economic open zones, special economic zones and economic and technological development zones are located, or in other areas specified by the State Council, which belong to energy, transportation, ports, docks or other projects encouraged by the state, may collect enterprise income tax at a reduced rate of/kloc-0.5%, and the specific measures shall be specified by the State Council.

Article 8 For productive foreign-invested enterprises with an operating period of more than 10, the enterprise income tax shall be exempted in the first and second years from the profit-making year, and the enterprise income tax shall be reduced by half in the third to fifth years. However, projects that belong to the exploitation of resources such as oil, natural gas, rare metals and precious metals shall be stipulated separately by the State Council. If the actual operating period of a foreign-invested enterprise is less than ten years, it shall pay back the enterprise income tax that has been exempted or reduced.

The regulations promulgated in the State Council before the implementation of this Law give preferential treatment for exemption or reduction of enterprise income tax for important productive projects such as energy, transportation, ports and wharves for a longer period than that specified in the preceding paragraph, or for important non-productive projects, which will continue to be implemented after the implementation of this Law.

Enterprises with foreign investment engaged in agriculture, forestry and animal husbandry and enterprises with foreign investment located in economically underdeveloped remote areas may, after the expiration of the tax reduction or exemption treatment in accordance with the provisions of the preceding two paragraphs, continue to reduce the enterprise income tax by 30% to 65% according to the taxable amount in the next ten years upon the application of enterprises and the approval of the competent tax authorities in the State Council.

After the implementation of this Law, if it is necessary to change the provisions of the preceding three paragraphs on exemption or reduction of enterprise income tax, it shall be decided by the State Council and reported to the NPC Standing Committee for approval.

Article 9 The people's governments of provinces, autonomous regions and municipalities directly under the Central Government may, according to actual conditions, decide to exempt or reduce local income tax on industries and projects that encourage foreign investment.

Article 10 If a foreign investor of a foreign-invested enterprise directly reinvests the profits obtained from the enterprise to increase its registered capital, or establishes other foreign-invested enterprises as capital investment for a period of not less than five years, 40% of the income tax paid for the reinvested part may be refunded upon the application of the investor and the approval of the tax authorities. If there are other preferential provisions in the State Council, it shall be handled in accordance with the provisions of the State Council. If the reinvestment is withdrawn within five years, the tax refund will be refunded.

Eleventh foreign-invested enterprises, institutions and places engaged in production and business operations established by foreign enterprises in China have annual losses, which can be made up by the income of the next tax year; If the income in the next tax year is insufficient to make up for it, it can be made up year by year, but the longest period shall not exceed five years.

Article 12 The income tax paid by a foreign-invested enterprise from sources outside China may be deducted from its taxable amount at the time of consolidated tax payment, but the deduction amount shall not exceed the taxable amount of its overseas income calculated in accordance with the provisions of this Law.

Thirteenth foreign-invested enterprises or institutions and places set up by foreign enterprises in China to engage in production and business operations and their affiliated enterprises shall collect or pay the prices and expenses according to the business dealings between independent enterprises. The tax authorities have the right to make reasonable adjustments if an independent enterprise reduces its taxable income because it fails to collect or pay the price and expenses according to its business dealings.

Article 14 The establishment, relocation, merger, division, termination and change registration of enterprises with foreign investment and institutions and places set up by foreign enterprises in China to engage in production and business operations shall be registered with the administrative department for industry and commerce or changed or cancelled, and the relevant documents shall be presented to the local tax authorities for tax registration or changed or cancelled.

Fifteenth payment of enterprise income tax and local income tax, calculated on an annual basis, quarterly in advance. Pay in advance within fifteen days after the end of the quarter; Settle the payment within five months after the end of the year, refund more and make up less.

Article 16 Foreign-invested enterprises and institutions and places set up by foreign enterprises in China to engage in production and business operations shall submit advance income tax returns to the local tax authorities within the time limit for each advance income tax; Submit the annual income tax return and final accounting report within four months after the end of the year.

Article 17 The financial and accounting systems of enterprises with foreign investment and institutions and places set up by foreign enterprises in China to engage in production and business operations shall be submitted to the local tax authorities for reference. All accounting records must be complete and accurate, based on legal vouchers.

If the financial and accounting treatment methods of enterprises with foreign investment and institutions and places established by foreign enterprises in China engaged in production and business operations conflict with the relevant tax regulations of the State Council, they shall calculate and pay taxes in accordance with the relevant tax regulations of the State Council.

Article 18 When a foreign-invested enterprise is liquidated, the balance of its net assets or surplus property after deducting undistributed profits, funds and liquidation expenses of the enterprise shall be the liquidation income, and income tax shall be paid in accordance with the provisions of this Law.

Article 19 If a foreign enterprise does not have an institution or place in China, but obtains profits, interest, rent, royalties and other income from China, or if it has an institution or place, but the above income is not actually related to its institution or place, it shall pay 20% income tax.

Income tax paid in accordance with the provisions of the preceding paragraph shall be paid by the actual beneficiary as the taxpayer and the payer as the withholding agent. The tax is withheld by the payer from each payment. The withholding agent shall turn over the tax withheld each time to the state treasury within five days and submit the withholding income tax report form to the local tax authorities.

Income tax shall be exempted or reduced for the following income:

(1) Profits made by foreign investors from foreign-invested enterprises shall be exempted from income tax;

(2) Interest income from loans made by international financial organizations to the Government of China and the National Bank of China shall be exempted from income tax;

(3) Interest income from loans made by foreign banks to the National Bank of China at preferential interest rates shall be exempted from income tax;

(4) With the approval of the tax authorities in the State Council, the royalties obtained by providing proprietary technology for scientific research, energy development, transportation development, agriculture, forestry and animal husbandry production and important technology development can be subject to income tax at a reduced rate of 10%, and those with advanced technology or favorable conditions can be exempted from income tax.

In addition to the provisions of this article, profits, interests, rents, royalties and other income stipulated by the State Council need to be given preferential treatment of income tax reduction or exemption.

Twentieth tax authorities have the right to check the financial, accounting and tax payment of enterprises with foreign investment and institutions and places engaged in production and business operations established by foreign enterprises in China; Have the right to check the withholding agents' withholding and collecting taxes. The inspected entity and withholding agent must truthfully report and provide relevant information, and may not refuse or conceal it.

When the tax authorities send personnel to inspect, they shall show their certificates and be responsible for confidentiality.

Article 21 Income tax paid in accordance with this Law 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 the State Administration of Foreign Exchange.

Article 22 If the taxpayer fails to pay the tax within the prescribed time limit, or the withholding agent fails to pay the tax within the prescribed time limit, the tax authorities shall, in addition to paying the tax within the prescribed time limit, impose a late fee of 2‰ of the overdue tax on a daily basis from the date when the tax is overdue.

Article 23 Whoever fails to go through the tax registration, change of registration or cancellation of registration with the tax authorities within the prescribed time limit, fails to submit the income tax return, final accounting statement or income tax withholding report to the tax authorities within the prescribed time limit, or fails to submit the financial and accounting system of his own unit to the tax authorities for reference, shall be ordered by the tax authorities to register or submit it within a prescribed time limit and may be fined not more than 5,000 yuan.

After being ordered by the tax authorities to register or submit within a time limit, the tax authorities have not gone through the tax registration or change registration with the tax authorities within the time limit, or have not submitted the income tax return, final accounting report or income tax withholding report to the tax authorities, and the tax authorities shall impose a fine of less than 10,000 yuan; If the circumstances are serious, the legal representative and the person directly responsible shall be investigated for criminal responsibility in accordance with the provisions of Article 121st of the Criminal Law.

Article 24 If a withholding agent fails to fulfill the withholding obligations stipulated in this Law and fails to deduct or underpay the tax payable, the tax authorities shall recover the tax payable within a time limit and may impose a fine of less than one time the tax payable.

If the withholding agent fails to pay the withheld tax into the state treasury within the prescribed time limit, the tax authorities shall order it to be paid within a specified time limit and may impose a fine of not more than 5,000 yuan; If it fails to pay within the time limit, it shall be recovered by the tax authorities according to law, and a fine of less than 1 10,000 yuan shall be imposed; If the circumstances are serious, the legal representative and the person directly responsible shall be investigated for criminal responsibility in accordance with the provisions of Article 121st of the Criminal Law.

Article 25 Whoever evades taxes by concealment or deception, or fails to pay taxes within the time limit stipulated in this Law, and fails to do so after being urged by the tax authorities, shall be recovered by the tax authorities and fined not more than five times the tax payable; If the circumstances are serious, the legal representative and the person directly responsible shall be investigated for criminal responsibility in accordance with the provisions of Article 121st of the Criminal Law.

Article 26 When a foreign-invested enterprise, foreign enterprise or withholding agent has a tax dispute with the tax authorities, they must first pay taxes according to regulations, and then they can apply for reconsideration to the tax authorities at the next higher level within 60 days from the date of receiving the tax payment certificate issued by the tax authorities. The tax authorities at the next higher level shall make a reconsideration decision within 60 days from the date of receiving the application for reconsideration. If you are not satisfied with the reconsideration decision, you can bring a lawsuit to the people's court within 15 days from the date of receiving the reconsideration decision.

If a party refuses to accept the punishment decision of the tax authorities, he may, within 15 days from the date of receiving the punishment notice, apply for reconsideration to the organ at the next higher level of the organ that made the punishment decision; If you are not satisfied with the reconsideration decision, you can bring a lawsuit to the people's court within 15 days from the date of receiving the reconsideration decision. The parties may also bring a suit directly to the people's court within 15 days from the date of receiving the penalty notice. If a party fails to apply for reconsideration or bring a suit in a people's court within the time limit, and fails to perform the punishment decision, the organ that made the punishment decision may apply to the people's court for compulsory execution.

Article 27 In accordance with the provisions of this Law, if the income tax rate of foreign-invested enterprises established before the promulgation of this Law is higher than that before the implementation of this Law, or if the preferential treatment for income tax relief is lower than that before the implementation of this Law, it shall be implemented in accordance with the laws before the implementation of this Law and the relevant provisions of the State Council within the approved operating period; If there is no operating period, it shall be implemented in accordance with the laws before the implementation of this Law and the relevant provisions of the State Council within the time limit stipulated by the State Council. Specific measures shall be formulated by the State Council.

Article 28 Where the tax agreements concluded between People's Republic of China (PRC) and foreign governments have different provisions from this Law, the provisions of the agreements shall prevail.

Article 29 the State Council shall formulate detailed rules for implementation in accordance with this Law.

Article 30 This Law shall come into force as of July 199 1 year 1 day. The Income Tax Law of the People's Republic of China on Chinese-foreign Joint Ventures and the Income Tax Law of People's Republic of China (PRC) on Foreign Enterprises shall be abolished at the same time.

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