In 1949, the first National Tax Conference adopted a basic plan to unify national tax policies, including methods for levying corporate income tax and personal income tax. In 1950, the Government Affairs Council promulgated the "National Tax Policy Implementation Guidelines", which stipulated that 14 types of taxes should be set up nationwide, including three types of taxes involving the taxation of income: industrial and commercial tax (income tax), deposit interest income tax and salary remuneration income tax.

After the reform and opening up, in order to adapt to the needs of introducing foreign capital, technology and talents, and carrying out foreign economic and technical cooperation, according to the unified deployment of the Party Central Committee, the tax system reform work was gradually launched during the "Seventh Five-Year Plan" period. In September 1980, the Third Session of the Fifth National People's Congress passed the "Income Tax Law of the People's Republic of China and Sino-foreign Joint Ventures" and promulgated it for implementation. The corporate income tax rate is determined to be 30%, and a local income tax of 10% is levied on the amount of income tax payable. In December 1981, the Fourth Session of the Fifth National People's Congress passed the "Foreign Enterprise Income Tax Law of the People's Republic of China", which implemented a five-level progressive tax rate of 20% to 40%. Income is subject to a local income tax of 10%.

As a major measure for enterprise reform and urban reform, in 1983, the State Council decided to trial the "profit-to-tax" reform of state-owned enterprises nationwide, which meant that state-owned enterprises that had been implemented for more than 30 years after the founding of New China would turn over to the state The profit system was changed to a corporate income tax system.

In April 1991, the Seventh National People's Congress merged the "Income Tax Law of the People's Republic of China on Sino-foreign Joint Ventures" and the "Income Tax Law of the People's Republic of China on Foreign Enterprises" , the "Income Tax Law of the People's Republic of China and Foreign-invested Enterprises and Foreign Enterprises" was formulated and came into effect on July 1 of the same year.

On December 13, 1993, the State Council promulgated the "Regulations on Income Tax of State-owned Enterprises of the People's Republic of China (Draft)", "Measures for the Collection of Adjustment Taxes on State-owned Enterprises" and "Regulations of the People's Republic of China on State-owned Enterprises" The Interim Regulations of the People's Republic of China on Income Tax and the "Interim Regulations of the People's Republic of China on Private Enterprise Income Tax" were integrated to formulate the "Interim Regulations of the People's Republic of China on Enterprise Income Tax", which came into effect on January 1, 1994. The above-mentioned reforms mark an important step forward in the reform of China's income tax system towards legalization, science and standardization.

On March 16, 2007, the Fifth Session of the Tenth National People's Congress passed the "Enterprise Income Tax Law of the People's Republic of China" and came into effect on January 1, 2008. , since then, domestic and foreign-funded enterprises have implemented a unified corporate income tax law.