According to the Enterprise Income Tax Law of People's Republic of China (PRC), the income tax of cooperatives needs to be determined according to the enterprise income tax rate, which is generally 25%, and the local tax refers to the value-added tax, which is generally 17%. The collection of these taxes shall be completed by the competent tax authorities in accordance with relevant regulations.

Cooperatives can enjoy the policy of small collection, which can effectively reduce the tax burden of cooperatives.