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Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China

 (2007年12月6日中华人民共和国国务院令第512号公布    根据2019年4月23日《国务院关于修改部分行政法规的决定》修订)

Chapter XNUMX General

  Article XNUMX These Regulations are formulated in accordance with the "Enterprise Income Tax Law of the People's Republic of China" (hereinafter referred to as the Enterprise Income Tax Law).

  Article XNUMX The term "sole proprietorship enterprises and partnership enterprises" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to sole proprietorship enterprises and partnership enterprises established in accordance with Chinese laws and administrative regulations.

  Article XNUMX Enterprises legally established within the territory of China as mentioned in Article XNUMX of the Enterprise Income Tax Law include enterprises, institutions, social groups and other organizations that obtain income established within the territory of China in accordance with Chinese laws and administrative regulations.

  Enterprises established under the laws of foreign countries (regions) as mentioned in Article XNUMX of the Enterprise Income Tax Law include enterprises established under the laws of foreign countries (regions) and other organizations that obtain income.

  Article XNUMX The term "actual management agency" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to an agency that exercises substantial and comprehensive management and control over the production and operation, personnel, accounts, property, etc. of an enterprise.

  Article XNUMX Institutions and establishments as mentioned in Paragraph XNUMX of Article XNUMX of the Enterprise Income Tax Law refer to establishments and establishments engaged in production and business activities within the territory of China, including:

  (XNUMX) Management agencies, business agencies, and offices;

  (XNUMX) Factories, farms, and places where natural resources are exploited;

  (XNUMX) The place where labor services are provided;

  (XNUMX) Places for construction, installation, assembly, repair, exploration and other engineering operations;

  (XNUMX) Other institutions and places engaged in production and business activities.

  If a non-resident enterprise entrusts a business agent to engage in production and business activities within the territory of China, including the entrusting unit or individual often signing contracts on its behalf, or storing or delivering goods, the business agent shall be regarded as an organization established by the non-resident enterprise within the territory of China, place.

  Article XNUMX The “income” as mentioned in Article XNUMX of the Enterprise Income Tax Law includes income from the sale of goods, income from the provision of labor services, income from property transfer, income from equity investments such as dividends, income from interest, income from rent, income from royalties, income from donations and other income. other income.

  Article XNUMX Income from sources within and outside China as mentioned in Article XNUMX of the Enterprise Income Tax Law shall be determined in accordance with the following principles:

  (XNUMX) Income from the sale of goods shall be determined according to the place where the trading activities take place;

  (XNUMX) Income from the provision of labor services shall be determined according to the place where the labor services occur;

  (XNUMX) Income from the transfer of property, the income from the transfer of immovable property shall be determined according to the location of the immovable property, the income from the transfer of movable property shall be determined according to the location of the enterprise, institution or place that transfers the movable property, and the income from the transfer of equity investment assets shall be determined according to the location of the invested enterprise;

  (XNUMX) Dividends, bonuses and other equity investment income shall be determined according to the location of the enterprise where the income is distributed;

  (XNUMX) Interest income, rental income, and royalties income shall be determined according to the location of the enterprise, institution, or place that bears or pays the income, or according to the domicile of the individual who bears or pays the income;

  (XNUMX) Other income shall be determined by the competent finance and taxation departments of the State Council.

  Article XNUMX The term “actual connection” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the fact that a non-resident enterprise established within the territory of China owns the equity, creditor's rights, and owns, manages and controls the property through which the income is obtained, etc. .

Chapter II Taxable Income

Section XNUMX General Provisions

  Article XNUMX The calculation of the taxable income of an enterprise shall be based on the principle of accrual, and the income and expenses that belong to the current period shall be regarded as the income and expenses of the current period regardless of whether the payment is received or not; The receipts and payments already made in the current period shall not be regarded as current income and expenses.Except as otherwise provided by these Regulations and the competent finance and taxation departments of the State Council.

  Article XNUMX The term “losses” as mentioned in Article XNUMX of the Enterprise Income Tax Law means that an enterprise deducts non-taxable income, tax-exempt income and all deductions less than zero from the total income of each tax year in accordance with the provisions of the Enterprise Income Tax Law and these Regulations. amount.

  Article XNUMX The term "liquidation income" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the balance of the realizable value or transaction price of all the assets of an enterprise after deducting the net asset value, liquidation fees and relevant taxes and fees.

  The remaining assets distributed by the investor enterprise from the liquidated enterprise, which is equivalent to the part that should be distributed from the accumulated undistributed profits and accumulated surplus reserve of the liquidated enterprise, shall be recognized as dividend income; the residual assets after deducting the above dividend income The balance of the investment assets, and the part that exceeds or falls below the investment cost shall be recognized as income or loss from the transfer of investment assets.

Section XNUMX Income

  Article XNUMX The monetary form of income obtained by an enterprise as mentioned in Article XNUMX of the Enterprise Income Tax Law includes cash, deposits, accounts receivable, notes receivable, bond investments prepared to be held to maturity, and debt exemption.

  The non-monetary forms of income obtained by an enterprise as mentioned in Article XNUMX of the Enterprise Income Tax Law include fixed assets, biological assets, intangible assets, equity investments, inventories, bond investments that are not intended to be held to maturity, labor services, and related rights and interests.

  Article XNUMX The income obtained by an enterprise in non-monetary form as mentioned in Article XNUMX of the Enterprise Income Tax Law shall be determined according to its fair value.

  The fair value mentioned in the preceding paragraph refers to the value determined according to the market price.

  Article XNUMX The income from sales of goods as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refers to the income obtained by an enterprise from the sale of commodities, products, raw materials, packaging materials, low-value consumables and other inventories.

  Article XNUMX The term "income from providing labor services" as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refers to the enterprises engaged in construction and installation, repair and repair, transportation, storage leasing, finance and insurance, post and telecommunications, consulting and brokerage, culture, sports, scientific Income from research, technical services, education and training, catering and accommodation, agency, health care, community services, tourism, entertainment, processing and other labor service activities.

  Article XNUMX The income from transfer of property as mentioned in item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refers to the income obtained by an enterprise from the transfer of fixed assets, biological assets, intangible assets, equity, creditor's rights and other properties.

  Article XNUMX The term "dividends, bonuses and other equity investment income" as mentioned in Article XNUMX(XNUMX) of the Enterprise Income Tax Law refers to the income obtained by an enterprise from the investee due to equity investment.

  Dividends, bonuses and other equity investment income, unless otherwise stipulated by the financial and taxation authorities of the State Council, shall be recognized on the date when the investee makes the profit distribution decision.

  Article XNUMX The term "interest income" as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refers to the income obtained by an enterprise from providing funds to others for use but not constituting equity investment, or from the occupation of the enterprise's funds by others, including deposit interest, Loan interest, bond interest, arrears interest and other income.

  For interest income, the realization of the income shall be recognized according to the date when the debtor shall pay the interest as agreed in the contract.

  Article XNUMX The term "rental income" as mentioned in item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refers to the income obtained by an enterprise from providing the right to use fixed assets, packaging or other tangible assets.

  For rental income, the realization of the income shall be recognized according to the date when the lessee shall pay the rent as agreed in the contract.

  Article XNUMX The “royalty fee income” as mentioned in Article XNUMX(XNUMX) of the Enterprise Income Tax Law refers to the income obtained by an enterprise from providing the right to use patents, non-patented technologies, trademarks, copyrights and other franchises.

  For royalties income, the realization of the income shall be confirmed according to the contracted date when the franchisee should pay the royalties.

  Article XNUMX The term “received donation income” as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refers to the monetary assets and non-monetary assets that the enterprise accepts from other enterprises, organizations or individuals given free of charge.

  Accept donation income, and confirm the realization of income according to the date when donated assets are actually received.

  Article XNUMX The term "other income" as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refers to the income obtained by an enterprise other than those specified in Items (XNUMX) to (XNUMX) of Article XNUMX of the Enterprise Income Tax Law. Income, including corporate asset surplus income, overdue unreturned package deposit income, payables that cannot be repaid, receivables recovered after bad debt loss treatment, debt restructuring income, subsidy income, liquidated damages income, foreign exchange income, etc.

  Article XNUMX The following production and operation businesses of an enterprise may recognize the realization of income in stages:

  (XNUMX) If the goods are sold by installments, the realization of the income shall be confirmed according to the date of payment agreed in the contract;

  (12) If an enterprise is entrusted to process and manufacture large-scale machinery and equipment, ships, and aircraft, as well as engage in construction, installation, and assembly projects, or provide other labor services, etc., for a duration of more than XNUMX months, the income shall be recognized according to the progress of completion or the amount of work completed within the tax year. realization.

  Article XNUMX If the income is obtained by product sharing, the realization of the income shall be confirmed according to the date when the enterprise obtains the product, and the amount of the income shall be determined according to the fair value of the product.

  Article XNUMX The exchange of non-monetary assets and the use of goods, property and labor services for donation, debt repayment, sponsorship, fundraising, advertising, samples, employee welfare or profit distribution shall be regarded as the sale of goods, Transfer property or provide labor services, unless otherwise stipulated by the competent finance and taxation departments of the State Council.

  Article XNUMX The term “financial appropriation” as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refers to the financial funds appropriated by the people’s governments at all levels to public institutions, social groups and other organizations included in the budget management, but the State Council and the State Council’s finance, Unless otherwise stipulated by the tax authorities.

  The term “administrative and institutional charges” as mentioned in Article XNUMX(XNUMX) of the Enterprise Income Tax Law refers to the implementation of social and public management and the provision of specific services to citizens, legal persons or other organizations in accordance with relevant laws and regulations, approved in accordance with the procedures prescribed by the State Council. In the process of public service, fees charged to specific objects and incorporated into financial management.

  The term “government fund” as mentioned in Article XNUMX(XNUMX) of the Enterprise Income Tax Law refers to the financial funds for special purposes collected by enterprises on behalf of the government in accordance with relevant laws, administrative regulations and other regulations.

  The term "other non-taxable income stipulated by the State Council" as mentioned in Article XNUMX(XNUMX) of the Enterprise Income Tax Law refers to the fiscal funds obtained by the enterprise for special purposes specified by the competent finance and taxation departments of the State Council and approved by the State Council.

Section XNUMX Deductions

  Article XNUMX The relevant expenditures mentioned in Article XNUMX of the Enterprise Income Tax Law refer to the expenditures directly related to the income obtained.

  The "reasonable expenditures" mentioned in Article XNUMX of the Enterprise Income Tax Law refer to the necessary and normal expenditures that conform to the routine of production and operation activities and should be included in the current profits and losses or the cost of relevant assets.

  Article XNUMX The expenditures incurred by an enterprise shall be classified into revenue expenditures and capital expenditures.Income expenditures shall be directly deducted in the current period; capital expenditures shall be deducted in installments or included in the cost of relevant assets, and shall not be directly deducted in the current period.

  The non-taxable income of an enterprise shall not be deducted or calculated for the corresponding depreciation and amortization deductions for expenses or property formed by expenditures.

  Unless otherwise stipulated in the Enterprise Income Tax Law and these Regulations, the actual costs, expenses, taxes, losses and other expenses incurred by the enterprise shall not be deducted repeatedly.

  Article XNUMX The term "cost" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the cost of sales, cost of goods sold, business expenditure and other expenses incurred by an enterprise in its production and operation activities.

  Article XNUMX Expenses as mentioned in Article XNUMX of the Enterprise Income Tax Law refer to the sales expenses, management expenses and financial expenses incurred by an enterprise in the production and operation activities, excluding the relevant expenses already included in the cost.

  Article XNUMX The term “taxes” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to various taxes and surcharges incurred by an enterprise other than enterprise income tax and deductible value-added tax.

  Article XNUMX The term “losses” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the loss of inventory, damage and scrapping of fixed assets and inventories, losses from transfer of properties, losses from bad debts, losses from bad debts, and natural disasters that occur in the production and business activities of enterprises. and other losses caused by force majeure factors.

  For losses incurred by an enterprise, the balance after deducting the compensation from the responsible party and insurance indemnity shall be deducted in accordance with the provisions of the competent finance and taxation departments of the State Council.

  Assets that have been treated as losses by the enterprise shall be included in the current income when all or part of the assets are recovered in subsequent tax years.

  Article XNUMX "Other expenditures" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to reasonable expenditures related to production and operation activities of an enterprise in the course of production and operation activities, in addition to costs, expenses, taxes and losses.

  Article XNUMX Reasonable wages and salaries incurred by the enterprise shall be deducted.

  Wages and salaries as mentioned in the preceding paragraph refer to all cash or non-cash labor remunerations paid by an enterprise to employees working or employed in the enterprise in each tax year, including basic wages, bonuses, allowances, subsidies, and year-end salary increases. , overtime pay, and other expenses related to the employee's tenure or employment.

  Article XNUMX Enterprises shall pay basic old-age insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and other basic social insurances for employees in accordance with the scope and standards prescribed by the relevant competent department of the State Council or the provincial people's government Fees and housing provident fund are allowed to be deducted.

  Supplementary old-age insurance premiums and supplementary medical insurance premiums paid by enterprises for investors or employees are allowed to be deducted within the scope and standards prescribed by the competent finance and taxation departments of the State Council.

  Article XNUMX In addition to the personal safety insurance premiums paid by the enterprise for employees of special types of work in accordance with the relevant regulations of the state and other commercial insurance premiums that can be deducted by the competent financial and taxation departments of the State Council, the commercial insurance premiums paid by the enterprise for investors or employees, Not deductible.

  Article XNUMX Reasonable borrowing costs that do not require capitalization incurred by an enterprise in its production and operation activities are allowed to be deducted.

  If an enterprise borrows money for the purchase and construction of fixed assets, intangible assets and inventories that can only be ready for sale after more than 12 months of construction, the reasonable borrowing costs incurred during the purchase and construction of relevant assets shall be calculated as capital expenditures. The cost of entering the relevant assets shall be deducted in accordance with the provisions of this Regulation.

  Article XNUMX The following interest expenses incurred by an enterprise in its production and operation activities are allowed to be deducted:

  (XNUMX) Interest expenses on loans from non-financial enterprises to financial enterprises, interest expenses on various deposits of financial enterprises and interest expenses on interbank lending, and interest expenses on bonds issued by enterprises upon approval;

  (XNUMX) The interest expense of a non-financial enterprise borrowing money from a non-financial enterprise shall not exceed the amount calculated according to the same loan interest rate of the financial enterprise in the same period.

  Article XNUMX The foreign exchange losses incurred by an enterprise in currency transactions and when the monetary assets and liabilities other than RMB are converted into RMB at the mid-point rate of the spot RMB exchange rate at the end of the tax year shall not be included in the cost of relevant assets and A deduction is allowed except for the portion related to the distribution of profits to owners.

  Article 14 The employee welfare expenses incurred by the enterprise shall not exceed XNUMX% of the total wages and salaries, and may be deducted.

  Article 2 The trade union funds allocated by the enterprise shall not exceed XNUMX% of the total wages and salaries, and may be deducted.

  Article 2.5 Unless otherwise stipulated by the competent finance and taxation departments of the State Council, the part of the employee education expenditure incurred by the enterprise, which does not exceed XNUMX% of the total wages and salaries, is allowed to be deducted; the excess part is allowed to be carried forward and deducted in subsequent tax years.

  Article 60 The business entertainment expenses related to production and operation activities incurred by an enterprise shall be deducted according to 5% of the amount incurred, but the maximum shall not exceed XNUMX‰ of the sales (operating) income of the current year.

  Article 15 The qualified advertising and business promotion expenses incurred by an enterprise shall be deducted for the part that does not exceed XNUMX% of the sales (operating) income of the current year, unless otherwise stipulated by the competent finance and taxation departments of the State Council; the excess part shall be deducted. Deductions are allowed to be carried forward in subsequent tax years.

  Article XNUMX The special funds drawn by enterprises for environmental protection and ecological restoration in accordance with the relevant provisions of laws and administrative regulations are allowed to be deducted.If the above-mentioned special funds are used and changed after being withdrawn, no deduction shall be allowed.

  Article XNUMX When an enterprise participates in property insurance, the insurance premiums paid in accordance with the regulations are allowed to be deducted.

  Article XNUMX The lease fee paid by an enterprise for renting in fixed assets according to the needs of production and operation activities shall be deducted according to the following methods:

  (XNUMX) The lease fees incurred for leased fixed assets under operating lease shall be deducted evenly according to the lease term;

  (XNUMX) For the lease expenses incurred by leasing the fixed assets in the form of financing lease, the part that constitutes the value of the fixed assets under financing lease shall be depreciated and deducted in installments.

  Article XNUMX Reasonable labor protection expenses incurred by enterprises are allowed to be deducted.

  Article XNUMX Management fees paid between enterprises, rents and royalties paid between business organizations within an enterprise, and interest paid between business organizations within a non-bank enterprise shall not be deducted.

  Article XNUMX For an institution or place established by a non-resident enterprise within the territory of China, for the expenses incurred by its head office outside China related to the production and operation of the institution or place, it can provide the scope of collection, quota, distribution basis and expenses issued by the head office. If the method and other supporting documents are distributed reasonably, the deduction is allowed.

  Article XNUMX The term “public welfare donations” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the donations made by enterprises for charitable activities and public welfare undertakings in compliance with legal provisions through public welfare social organizations or the people’s governments at or above the county level and their departments.

  Article XNUMX The term "public welfare social organizations" as mentioned in Article XNUMX of these Regulations refers to charitable organizations and other social organizations that meet the following conditions at the same time:

  (XNUMX) Registered in accordance with the law and have the status of a legal person;

  (XNUMX) The purpose is to develop public welfare undertakings and not for profit;

  (XNUMX) All assets and their appreciation are owned by the legal person;

  (XNUMX) The income and operating balance are mainly used for the business that meets the purpose of establishment of the legal person;

  (XNUMX) The remaining property after termination does not belong to any individual or for-profit organization;

  (XNUMX) Not to operate any business unrelated to the purpose of its establishment;

  (XNUMX) It has a sound financial accounting system;

  (XNUMX) The donor does not participate in the distribution of the legal person's property in any form;

  (XNUMX) Other conditions stipulated by the competent department of finance and taxation of the State Council in conjunction with the civil affairs department of the State Council and other registration management departments.

  Article 12 The public welfare donation expenditure incurred by the enterprise in the current year and carried forward from the previous year is allowed to be deducted, which does not exceed XNUMX% of the total annual profit.

  The total annual profit refers to the annual accounting profit calculated by the enterprise in accordance with the provisions of the unified national accounting system.

  Article XNUMX Sponsorship expenditures as mentioned in Article XNUMX(XNUMX) of the Enterprise Income Tax Law refer to various non-advertising expenditures incurred by enterprises that are not related to production and business activities.

  Article XNUMX The term "unapproved reserve expenditures" as mentioned in Article XNUMX(XNUMX) of the Enterprise Income Tax Law refers to the reserves that do not comply with the provisions of the State Council's financial and taxation authorities for various asset impairment reserves, risk reserves, etc. expenditure.

Section XNUMX Tax Treatment of Assets

  Article XNUMX All assets of an enterprise, including fixed assets, biological assets, intangible assets, long-term deferred expenses, investment assets, inventories, etc., shall be taxed based on historical cost.

  The historical cost mentioned in the preceding paragraph refers to the expenditure actually incurred when the enterprise obtains the asset.

  During the period in which an enterprise holds various assets, the assets increase or decrease in value, and the tax base for the assets shall not be adjusted unless the financial and taxation authorities of the State Council can confirm the profit and loss.

  Article 12 The term “fixed assets” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to non-monetary assets held by an enterprise for the production of products, provision of labor services, rental or business management and used for more than XNUMX months, including housing , buildings, machines, machinery, means of transport, and other equipment, appliances, tools, etc. related to production and business activities.

  Article XNUMX The tax base for fixed assets shall be determined according to the following methods:

  (XNUMX) For fixed assets purchased from outside, the tax base shall be the purchase price, relevant taxes paid and other expenditures directly attributable to making the asset reach its intended use;

  (XNUMX) For self-built fixed assets, the tax base shall be the expenditures incurred before completion and settlement;

  (XNUMX) For fixed assets under financing lease, the tax base shall be the total payment agreed in the leasing contract and the relevant expenses incurred by the lessee in the process of signing the leasing contract. If the leasing contract does not stipulate the total amount of payment, the fair value and The relevant expenses incurred by the lessee in the process of signing the lease contract shall be the tax basis;

  (XNUMX) For fixed assets with excess inventory, the tax base shall be the full replacement value of similar fixed assets;

  (XNUMX) For fixed assets obtained through donation, investment, non-monetary asset exchange, debt restructuring, etc., the tax base shall be the fair value of the asset and the relevant taxes paid;

  (XNUMX) For the reconstructed fixed assets, in addition to the expenditures stipulated in Items (XNUMX) and (XNUMX) of Article XNUMX of the Enterprise Income Tax Law, the tax base shall be increased by the reconstruction expenditures incurred during the reconstruction process.

  Article XNUMX The depreciation of fixed assets calculated according to the straight-line method is allowed to be deducted.

  An enterprise shall calculate depreciation from the month following the month in which the fixed assets are put into use; for fixed assets that are out of use, depreciation shall be stopped from the month following the month in which they are out of use.

  The enterprise shall reasonably determine the estimated net residual value of the fixed assets according to the nature and usage of the fixed assets.Once the estimated net residual value of fixed assets is determined, it cannot be changed.

  Article XNUMX Unless otherwise stipulated by the competent finance and taxation departments of the State Council, the minimum years for calculating depreciation of fixed assets are as follows:

  (20) XNUMX years for houses and buildings;

  (10) XNUMX years for aircraft, trains, ships, machinery, machinery and other production equipment;

  (5) XNUMX years for utensils, tools, furniture, etc. related to production and business activities;

  (4) XNUMX years for means of transport other than planes, trains and ships;

  (3) Electronic equipment, XNUMX years.

  Article XNUMX For enterprises engaged in the exploitation of petroleum, natural gas and other mineral resources, the expenses incurred before commercial production and the methods of depletion and depreciation of relevant fixed assets shall be separately prescribed by the competent finance and taxation departments of the State Council.

  Article XNUMX The tax base for productive biological assets shall be determined according to the following methods:

  (XNUMX) For the purchased productive biological assets, the tax base shall be the purchase price and the relevant taxes paid;

  (XNUMX) For productive biological assets obtained through donation, investment, non-monetary asset exchange, debt restructuring, etc., the tax base shall be the fair value of the asset and the relevant taxes paid.

  The productive biological assets mentioned in the preceding paragraph refer to the biological assets held by enterprises for the production of agricultural products, provision of labor services, or lease, etc., including economic forests, fuel wood forests, production and draft animals, etc.

  Article XNUMX The depreciation of productive biological assets calculated according to the straight-line method is allowed to be deducted.

  An enterprise shall calculate the depreciation from the month following the month in which the productive biological assets are put into use; for the productive biological assets that are discontinued, the calculation of depreciation shall be stopped from the month following the month when the productive biological assets are discontinued.

  The enterprise shall reasonably determine the estimated net residual value of the productive biological assets according to the nature and usage of the productive biological assets.Once the estimated net residual value of productive biological assets is determined, it cannot be changed.

  Article XNUMX The minimum years for calculating depreciation of productive biological assets are as follows:

  (10) XNUMX years for productive biological assets of forest trees;

  (3) XNUMX years for the productive biological assets of livestock.

  Article XNUMX The term "intangible assets" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the non-monetary long-term assets without physical form held by enterprises for the production of products, provision of labor services, lease or business management, including patent rights, Trademark rights, copyrights, land use rights, non-patented technologies, goodwill, etc.

  Article XNUMX The tax base for intangible assets shall be determined according to the following methods:

  (XNUMX) For purchased intangible assets, the tax base shall be the purchase price, relevant taxes paid and other expenses directly attributable to making the asset reach its intended use;

  (XNUMX) For self-developed intangible assets, the tax base shall be the expenditures incurred after the assets meet the capitalization conditions and before reaching the intended use during the development process;

  (XNUMX) For intangible assets obtained through donation, investment, non-monetary asset exchange, debt restructuring, etc., the tax base shall be the fair value of the asset and the relevant taxes paid.

  Article XNUMX The amortization expenses of intangible assets calculated by the straight-line method are allowed to be deducted.

  The amortization period of intangible assets shall not be less than 10 years.

  As an investment or transfer of intangible assets, if the relevant laws or contracts stipulate a useful life, it may be amortized in installments according to the stipulated or agreed useful life.

  Expenses for purchased goodwill are allowed to be deducted when the enterprise is transferred or liquidated as a whole.

  Article XNUMX The expenditures for the reconstruction of fixed assets as mentioned in Items (XNUMX) and (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refer to the expenditures incurred for changing the structure of houses or buildings, extending the service life, etc.

  Expenses stipulated in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law shall be amortized in installments according to the estimated useful life of the fixed assets; expenses stipulated in Item (XNUMX) shall be amortized in installments according to the remaining lease term agreed in the contract.

  If the rebuilt fixed assets extend the useful life, in addition to the provisions of Article XNUMX (XNUMX) and (XNUMX) of the Enterprise Income Tax Law, the depreciation period shall be appropriately extended.

  Article XNUMX The expenditure on overhaul of fixed assets as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refers to the expenditure that meets the following conditions at the same time:

  (50) The repair expenses reach more than XNUMX% of the tax base when the fixed assets are obtained;

  (2) The useful life of fixed assets after repair is extended by more than XNUMX years.

  Expenses stipulated in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law shall be amortized in installments according to the useful life of the fixed assets.

  Article 3 The other expenses that should be regarded as long-term deferred expenses as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law shall be amortized in installments starting from the month following the month in which the expenses occurred, and the amortization period shall not be less than XNUMX years.

  Article XNUMX The term "investment assets" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the assets formed by an enterprise's external equity investment and debt investment.

  When an enterprise transfers or disposes of investment assets, the cost of investment assets is allowed to be deducted.

  Investment assets are costed as follows:

  (XNUMX) For investment assets obtained by paying cash, the purchase price shall be the cost;

  (XNUMX) For investment assets obtained by means other than cash, the fair value of the assets and the relevant taxes paid shall be taken as the cost.

  Article XNUMX The term “inventory” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the products or commodities held by the enterprise for sale, the work-in-progress in the production process, the materials and materials consumed in the production or provision of labor services. materials, etc.

  Inventories are costed as follows:

  (XNUMX) For inventories obtained by paying cash, the cost shall be the purchase price and the relevant taxes paid;

  (XNUMX) For inventories obtained by means other than cash payment, the fair value of the inventories and the relevant taxes paid shall be taken as the cost;

  (XNUMX) For the agricultural products harvested from productive biological assets, the cost shall be the necessary expenses such as material costs, labor costs and apportioned indirect costs incurred during the production or harvesting process.

  Article XNUMX The cost calculation method for inventories used or sold by an enterprise may be one of the first-in first-out method, the weighted average method, and the individual pricing method.Once the pricing method is selected, it cannot be changed at will.

  Article XNUMX The "net value of assets" as mentioned in Article XNUMX of the Enterprise Income Tax Law and the "net value of property" as mentioned in Article XNUMX refer to the tax base of the relevant assets and properties minus the depreciation, depletion and amortization that have been deducted in accordance with regulations , reserves, etc.

  Article XNUMX Unless otherwise stipulated by the finance and taxation authorities of the State Council, during the reorganization process, the enterprise shall confirm the transfer income or loss of the relevant assets when the transaction occurs, and the relevant assets shall re-determine the tax base according to the transaction price.

Chapter III Tax Payable

  Article XNUMX The formula for calculating the tax payable stipulated in Article XNUMX of the Enterprise Income Tax Law is:

  Taxable amount = taxable income × applicable tax rate - deductions and exemptions - credits

  The tax deductions and credits in the formula refer to the amount of tax payable that is deducted, exempted and credited in accordance with the Enterprise Income Tax Law and the State Council's preferential tax regulations.

  Article XNUMX The amount of income tax that has been paid overseas as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the nature of the enterprise income tax that should be paid and has actually been paid on the income of an enterprise derived from outside China in accordance with China's overseas tax laws and relevant regulations. of taxes.

  Article XNUMX The “credit limit” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the tax payable of the enterprise's income from outside China, calculated in accordance with the provisions of the Enterprise Income Tax Law and these Regulations.Unless otherwise stipulated by the competent finance and taxation departments of the State Council, the credit limit shall be calculated by country (region) and not by item. The calculation formula is as follows:

  Credit limit = total taxable income calculated in accordance with the Enterprise Income Tax Law and these regulations for income within and outside China × taxable income from a certain country (region) ÷ total taxable income within and outside China

  Article 5 The term “five years” as mentioned in Article 5 of the Enterprise Income Tax Law refers to the year in which the income obtained from the enterprise from sources outside China and the amount of enterprise income tax paid outside China exceeds the credit limit. XNUMX consecutive tax years starting from the following year.

  Article 20 The term "direct control" as mentioned in Article XNUMX of the Enterprise Income Tax Law means that a resident enterprise directly holds more than XNUMX% of the shares of a foreign enterprise.

  The term “indirect control” as mentioned in Article 20 of the Enterprise Income Tax Law means that a resident enterprise holds more than XNUMX% of the shares of a foreign enterprise in the form of indirect shareholding.

  Article XNUMX When an enterprise deducts and deducts the enterprise income tax amount in accordance with the provisions of Article XNUMX and Article XNUMX of the Enterprise Income Tax Law, it shall provide the relevant tax payment certificate issued by the tax authority outside China for the tax year.

Chapter IV Tax Incentives

  Article XNUMX The term "interest income from treasury bonds" as mentioned in Article XNUMX(XNUMX) of the Enterprise Income Tax Law refers to the interest income obtained by enterprises from holding treasury bonds issued by the financial department of the State Council.

  Article 12 Dividends, bonuses and other equity investment income between eligible resident enterprises as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refers to the investment obtained by resident enterprises directly investing in other resident enterprises income.Dividends, bonuses and other equity investment incomes as mentioned in Items (XNUMX) and (XNUMX) of Article XNUMX of the Enterprise Income Tax Law do not include the continuous holding of publicly issued and listed stocks of resident enterprises for less than XNUMX months. return on investment.

  Article XNUMX The non-profit organizations that meet the conditions as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refer to organizations that meet the following conditions at the same time:

  (XNUMX) Performing the registration procedures for non-profit organizations according to law;

  (XNUMX) engaging in public welfare or non-profit activities;

  (XNUMX) Except for the reasonable expenditures related to the organization, all the income obtained is used for public welfare or non-profit undertakings approved by registration or stipulated in the articles of association;

  (XNUMX) The property and its fruits are not used for distribution;

  (XNUMX) According to the registration approval or the articles of association, the residual property after the cancellation of the organization is used for public welfare or non-profit purposes, or is donated by the registration management authority to an organization with the same nature and purpose as the organization, and an announcement is made to the public;

  (XNUMX) The investor does not retain or enjoy any property rights to the property invested in the organization;

  (XNUMX) Staff salary and welfare expenses shall be controlled within the prescribed proportion, and the property of the organization shall not be allocated in phase.

  The administrative measures for the identification of non-profit organizations as prescribed in the preceding paragraph shall be formulated by the competent department of finance and taxation under the State Council in conjunction with the relevant departments of the State Council.

  Article XNUMX The income of qualified non-profit organizations as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law does not include the income obtained by non-profit organizations from engaging in for-profit activities, but the competent finance and taxation departments of the State Council shall otherwise. Except as provided.

  Article XNUMX The income of enterprises engaged in agricultural, forestry, animal husbandry and fishery projects as specified in item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law may be exempted or reduced from enterprise income tax, which means:

  (XNUMX) The income of an enterprise engaged in the following items shall be exempted from enterprise income tax:

  1.Planting of vegetables, grains, potatoes, oilseeds, beans, cotton, hemp, sugar, fruits, nuts;

  2.Breeding of new crop varieties;

  3.cultivation of Chinese herbal medicines;

  4.Cultivation and planting of forest trees;

  5.Raising livestock and poultry;

  6.collection of forest products;

  7.Agricultural, forestry, animal husbandry and fishery service projects such as irrigation, primary processing of agricultural products, veterinary medicine, agricultural technology extension, agricultural machinery operation and maintenance;

  8.Ocean fishing.

  (XNUMX) For the income of enterprises engaged in the following items, the enterprise income tax shall be halved:

  1.The cultivation of flowers, tea and other beverage crops and spice crops;

  2.Marine aquaculture, inland aquaculture.

  Enterprises engaged in projects whose development is restricted or prohibited by the state shall not enjoy the preferential corporate income tax provided for in this article.

  Article XNUMX The public infrastructure projects supported by the state as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law refer to the ports, terminals, airports, railways, etc. Highways, urban public transport, electricity, water conservancy and other projects.

  Income from investment and operation of enterprises engaged in public infrastructure projects supported by the state as specified in the preceding paragraph shall be exempted from corporate income tax from the first year to the third year from the tax year in which the project obtains the first production and operation income, and from the fourth year to the third year. In the sixth year, corporate income tax is halved.

  Enterprises contracted for operation, contracted construction and internal self-construction and self-use of the projects stipulated in this article shall not enjoy the enterprise income tax preference stipulated in this article.

  Article XNUMX The qualified environmental protection, energy-saving and water-saving projects mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law include public sewage treatment, public garbage treatment, comprehensive development and utilization of biogas, and technological transformation of energy conservation and emission reduction. , seawater desalination, etc.The specific conditions and scope of the project shall be formulated by the competent finance and taxation departments of the State Council in consultation with the relevant departments of the State Council, and shall be announced and implemented after being reported to the State Council for approval.

  The income of the enterprise engaged in the environmental protection, energy saving and water saving projects that meet the conditions specified in the preceding paragraph shall be exempted from enterprise income tax from the first year to the third year from the tax year in which the project obtains the first production and operation income, and the fourth year to the third year. Corporate income tax is halved for six years.

  Article XNUMX If a project that enjoys tax reduction or exemption in accordance with Articles XNUMX and XNUMX of these Regulations is transferred within the tax reduction period, the transferee may, from the date of transfer, have the right to transfer within the remaining period. Enjoy the prescribed tax reduction and exemption; if the transfer is transferred after the expiration of the tax reduction period, the transferee shall not enjoy the repeated tax reduction and exemption for the project.

  Article 500 The term "exemption or reduction of enterprise income tax for qualified technology transfer income" as mentioned in Article 500(XNUMX) of the Enterprise Income Tax Law refers to the income from technology transfer of a resident enterprise that does not exceed RMB XNUMX million within a tax year. Part of it is exempted from corporate income tax; the part exceeding XNUMX million yuan is halved and levied on corporate income tax.

  Article 10 For non-resident enterprises that obtain the income specified in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law, the enterprise income tax shall be levied at a reduced rate of XNUMX%.

  The following income is exempt from corporate income tax:

  (XNUMX) Interest income from loans provided by foreign governments to the Chinese government;

  (XNUMX) Interest income from international financial organizations providing preferential loans to the Chinese government and resident enterprises;

  (XNUMX) Other income approved by the State Council.

  Article XNUMX The term "small and low-profit enterprises that meet the conditions" as mentioned in the first paragraph of Article XNUMX of the Enterprise Income Tax Law refers to enterprises engaged in industries that are not restricted or prohibited by the state and meet the following conditions:

  (30) For industrial enterprises, the annual taxable income does not exceed 100 yuan, the number of employees does not exceed 3000, and the total assets do not exceed XNUMX million yuan;

  (30) For other enterprises, the annual taxable income shall not exceed 80 yuan, the number of employees shall not exceed 1000, and the total assets shall not exceed XNUMX million yuan.

  Article XNUMX The term "high-tech enterprises that the state needs to give key support to" as mentioned in the second paragraph of Article XNUMX of the Enterprise Income Tax Law refers to enterprises that possess core independent intellectual property rights and meet the following conditions at the same time:

  (XNUMX) The products (services) fall within the scope stipulated in the "High-tech Fields Key Supported by the State";

  (XNUMX) The proportion of research and development expenses to sales revenue shall not be lower than the prescribed proportion;

  (XNUMX) The proportion of the income from high-tech products (services) to the total income of the enterprise shall not be lower than the prescribed proportion;

  (XNUMX) The proportion of scientific and technological personnel to the total number of employees of the enterprise shall not be lower than the prescribed proportion;

  (XNUMX) Other conditions stipulated in the administrative measures for the identification of high-tech enterprises.

  The "High-tech Fields Key Supported by the State" and the administrative measures for the identification of high-tech enterprises shall be formulated by the State Council's science and technology, finance, and taxation departments in consultation with the relevant departments of the State Council, and shall be promulgated and implemented after being reported to the State Council for approval.

  Article XNUMX The term "ethnic autonomous areas" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the autonomous regions, autonomous prefectures and autonomous counties that exercise regional ethnic autonomy in accordance with the provisions of the "Regional Ethnic Autonomy Law of the People's Republic of China".

  Enterprises in industries restricted or prohibited by the state in ethnic autonomous areas shall not be subject to reduction or exemption of corporate income tax.

  Article 50 The super-deduction of research and development expenses as mentioned in Item (150) of Article XNUMX of the Enterprise Income Tax Law refers to the research and development expenses incurred by an enterprise for the development of new technologies, new products and new processes, which have not formed intangible assets. If it is included in the current profit and loss, XNUMX% of the research and development expenses will be deducted on the basis of actual deduction according to regulations; if it forms intangible assets, it will be amortized according to XNUMX% of the cost of intangible assets.

  Article 100 The term “additional deduction of wages paid by an enterprise to place disabled persons” as mentioned in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law means that when an enterprise places a disabled person, it shall be deducted according to the actual wages paid to disabled employees. On the basis of XNUMX% of the wages paid to disabled employees, a super deduction will be made.The scope of disabled persons shall be governed by the relevant provisions of the Law of the People's Republic of China on the Protection of Disabled Persons.

  The measures for the additional deduction of wages paid by other employed persons encouraged by the state to be resettled by enterprises referred to in Item (XNUMX) of Article XNUMX of the Enterprise Income Tax Law shall be separately prescribed by the State Council.

  Article 2 The deduction of taxable income as mentioned in Article 70 of the Enterprise Income Tax Law means that if a venture capital enterprise invests in an unlisted small and medium-sized high-tech enterprise by means of equity investment for more than 2 years, the amount of its investment may be deducted. XNUMX% of the equity is deducted from the taxable income of the venture capital enterprise in the year in which the equity has been held for XNUMX years; if the deduction is insufficient in the current year, it can be carried forward and deducted in subsequent tax years.

  Article XNUMX The fixed assets mentioned in Article XNUMX of the Enterprise Income Tax Law that can adopt the method of shortening the depreciation period or adopting the method of accelerated depreciation include:

  (XNUMX) Due to technological progress, fixed assets with faster product replacement;

  (XNUMX) Fixed assets in a state of strong vibration and high corrosion all year round.

  If the method of shortening the depreciation period is adopted, the minimum depreciation period shall not be less than 60% of the depreciation period stipulated in Article XNUMX of these Regulations; if the method of accelerated depreciation is adopted, the double declining balance method or the total number of years method may be adopted.

  Article 90 The term “reduced income” as mentioned in Article XNUMX of the Enterprise Income Tax Law means that an enterprise uses the resources specified in the Catalogue of Enterprise Income Tax Preferential for Comprehensive Utilization of Resources as its main raw materials, and its production is not restricted or prohibited by the state and conforms to the requirements of the state and the industry. The income obtained from products of relevant standards shall be included in the total income at the deduction of XNUMX%.

  The proportion of raw materials mentioned in the preceding paragraph to the materials of production products shall not be lower than the standard stipulated in the Catalogue of Income Tax Preferential Enterprises for Comprehensive Utilization of Resources.

  Article 10 The term “tax credit” as mentioned in Article 5 of the Enterprise Income Tax Law refers to the purchase and actual use of the Enterprise Income Tax Preferential Catalogue for Special Equipment for Environmental Protection, the Enterprise Income Tax Preferential Catalogue for Special Equipment for Energy Conservation and Water Saving, and the Safety XNUMX% of the investment amount of the special equipment can be deducted from the tax payable of the enterprise for the current year; , the credit can be carried forward for the next XNUMX tax years.

  An enterprise that enjoys the preferential enterprise income tax prescribed in the preceding paragraph shall actually purchase and put into use the special equipment prescribed in the preceding paragraph; if the enterprise purchases the above-mentioned special equipment and transfers or leases it within 5 years, it shall stop enjoying the preferential enterprise income tax, and make up the Credit for corporate income tax.

  XNUMX. The catalogue of preferential corporate income tax stipulated in Articles XNUMX, XNUMX and XNUMX of this chapter shall be formulated by the competent finance and taxation departments of the State Council in consultation with the relevant departments of the State Council, and shall be promulgated and implemented after being reported to the State Council for approval.

  Article XNUMX If an enterprise engages in projects subject to different enterprise income tax treatment at the same time, its preferential projects shall calculate the income separately, and allocate the period expenses of the enterprise reasonably;

Chapter V Withholding at Sources

  Article XNUMX If the enterprise income tax payable by a non-resident enterprise is withheld at source in accordance with the Enterprise Income Tax Law, the taxable income shall be calculated in accordance with the provisions of Article XNUMX of the Enterprise Income Tax Law.

  The “full amount of income” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to all the prices and extra-price fees that a non-resident enterprise collects from the payer.

  Article XNUMX The term "payer" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the entity or individual that is directly obligated to pay the relevant amount to the non-resident enterprise in accordance with the relevant laws or the contract.

  Article XNUMX Payments as mentioned in Article XNUMX of the Enterprise Income Tax Law include cash payments, remittance payments, transfer payments, and rights and interests exchange payments and other monetary and non-monetary payments.

  The “payments due and payable” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the payables that should be included in the relevant costs and expenses by the payer in accordance with the principle of accrual basis.

  Article XNUMX The circumstances under which a withholding agent may be designated as stipulated in Article XNUMX of the Enterprise Income Tax Law include:

  (XNUMX) The expected period of engineering operations or provision of labor services is less than one tax year, and there is evidence that the tax obligations are not fulfilled;

  (XNUMX) failing to go through tax registration or temporary tax registration, and failing to entrust an agent within China to perform tax obligations;

  (XNUMX) Failure to file corporate income tax returns or prepayment returns within the prescribed time limit.

  The withholding agent specified in the preceding paragraph shall be designated by the tax authority at or above the county level, and the withholding agent shall be informed of the calculation basis, calculation method, withholding period and withholding method of the tax withheld.

  Article XNUMX The place where the income is generated as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the place where the income is generated according to the principles stipulated in Article XNUMX of these Regulations.If there are multiple sources of income within the territory of China, the taxpayer shall choose one of them to declare and pay corporate income tax.

  Article XNUMX The term "other income of the taxpayer within the territory of China" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the income of the taxpayer from various other sources within the territory of China.

  When retrieving the tax payable by the taxpayer, the tax authority shall inform the taxpayer of the reasons for the retrieving, the amount of retrieving, the time limit for payment and the method of payment.

Chapter VI Special Tax Adjustment

  Article XNUMX The term "related parties" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to enterprises, other organizations or individuals that have one of the following related relationships with the enterprise:

  (XNUMX) There is a direct or indirect control relationship in capital, operation, purchase and sales, etc.;

  (XNUMX) Directly or indirectly controlled by a third party;

  (XNUMX) Other relationships with related interests.

  Article XNUMX The "arms-length transaction principle" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the principle that the parties to the transaction who are not affiliated shall conduct business transactions in accordance with the arm's length transaction price and business practices.

  Article XNUMX The “reasonable methods” as mentioned in Article XNUMX of the Enterprise Income Tax Law include:

  (XNUMX) Comparable uncontrolled price method, which refers to the method of pricing at the same or similar business transaction price between unrelated parties to the transaction;

  (XNUMX) The resale price method, which refers to the method of pricing based on the price of goods purchased from related parties and resale to non-affiliated transaction parties, minus the gross profit from sales of the same or similar business;

  (XNUMX) The cost plus method refers to the method of pricing based on cost plus reasonable expenses and profits;

  (XNUMX) The transactional net profit method refers to the method of determining profit according to the level of net profit obtained by the parties to the transaction who are not affiliated with the same or similar business transactions;

  (XNUMX) Profit division method, which refers to the method in which the combined profits or losses of an enterprise and its related parties are distributed among the parties using reasonable standards;

  (XNUMX) Other methods that conform to the arm's length principle.

  Article XNUMX An enterprise may, in accordance with the provisions of Paragraph XNUMX of Article XNUMX of the Enterprise Income Tax Law, share common costs with its affiliates in accordance with the arm's length principle, and reach a cost sharing agreement.

  When an enterprise and its related parties share costs, they shall share the costs according to the principle of matching the cost with the expected income, and submit relevant materials as required by the tax authorities within the time limit prescribed by the tax authorities.

  If an enterprise violates the provisions of paragraphs XNUMX and XNUMX of this article when sharing costs with its affiliates, the costs allocated by itself shall not be deducted from the calculation of taxable income.

  Article XNUMX The term "advance pricing arrangement" as mentioned in Article XNUMX of the Enterprise Income Tax Law means that an enterprise applies to the tax authority on the pricing principles and calculation methods of its affiliated transactions in the future years, and then cooperates with the tax authority in accordance with the arm's length principle. An agreement reached after negotiation and confirmation.

  Article XNUMX The relevant materials referred to in Article XNUMX of the Enterprise Income Tax Law include:

  (XNUMX) Contemporaneous materials such as the formulation standards, calculation methods and descriptions of prices and expenses related to related business transactions;

  (XNUMX) Relevant materials on the resale (transfer) price or the final sales (transfer) price of the property, property use rights, labor services, etc. involved in related business transactions;

  (XNUMX) Materials such as product prices, pricing methods and profit levels that are comparable to those of the enterprise under investigation that should be provided by other enterprises related to the affiliate business investigation;

  (XNUMX) Other materials related to related business transactions.

  "Other enterprises related to the investigation of affiliated business" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to enterprises that are similar to the enterprise under investigation in terms of production and operation content and methods.

  The enterprise shall provide the price, the formulating standard, calculation method and description of the related party business transactions within the time limit specified by the tax authority.Affiliated parties and other enterprises involved in the investigation of affiliated business shall provide relevant materials within the time limit agreed upon by the tax authorities.

  Article XNUMX When the tax authorities determine the taxable income of an enterprise in accordance with the provisions of Article XNUMX of the Enterprise Income Tax Law, the following methods may be adopted:

  (XNUMX) Verification with reference to the profit rate level of similar or similar enterprises;

  (XNUMX) Appraisal according to the method of enterprise cost plus reasonable expenses and profits;

  (XNUMX) Appraisal based on a reasonable proportion of the overall profits of the affiliated enterprise group;

  (XNUMX) Approved according to other reasonable methods.

  If an enterprise has any objection to the taxable income amount verified by the tax authority in accordance with the method specified in the preceding paragraph, it shall provide relevant evidence and adjust the verified taxable income amount after being confirmed by the tax authority.

  Article XNUMX The term “Chinese residents” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to persons who, in accordance with the provisions of the Individual Income Tax Law of the People’s Republic of China, pay individual income tax in China on their income obtained from within and outside China. personal.

  Article XNUMX Control as mentioned in Article XNUMX of the Enterprise Income Tax Law includes:

  (10) A resident enterprise or a Chinese resident directly or indirectly holds more than 50% of the voting shares of a foreign enterprise, and they jointly hold more than XNUMX% of the shares of the foreign enterprise;

  (XNUMX) A resident enterprise, or the shareholding ratio between a resident enterprise and a Chinese resident does not meet the standard specified in item (XNUMX), but it constitutes substantial control over the foreign enterprise in terms of shares, capital, operation, purchase and sale, etc.

  Article 50 The actual tax burden mentioned in Article XNUMX of the Enterprise Income Tax Law is significantly lower than the tax rate specified in Article XNUMX, paragraph XNUMX of the Enterprise Income Tax Law, which means lower than the tax rate specified in Article XNUMX, paragraph XNUMX of the Enterprise Income Tax Law. XNUMX% of the tax rate.

  Article XNUMX The term “debt investment” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to an investment directly or indirectly obtained by an enterprise from a related party, which needs to repay the principal and pay interest, or needs to pay interest in other ways. Compensated financing.

  Debt investments indirectly obtained by enterprises from related parties, including:

  (XNUMX) Debt investments provided by related parties through unrelated third parties;

  (XNUMX) Debt investments provided by unrelated third parties, guaranteed by related parties, and jointly and severally liable;

  (XNUMX) Other debt investments with substantial liabilities obtained indirectly from related parties.

  The term "equity investment" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to an investment accepted by an enterprise that does not require repayment of principal and interest, and the investor has ownership of the net assets of the enterprise.

  The standards referred to in Article XNUMX of the Enterprise Income Tax Law shall be separately prescribed by the competent departments of finance and taxation under the State Council.

  Article XNUMX The term "not having a reasonable commercial purpose" as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the main purpose of reducing, exempting or delaying the payment of taxes.

  Article 6 If the tax authority makes special tax adjustments to an enterprise in accordance with the provisions of tax laws and administrative regulations, the additional tax shall be levied from June 1 of the next year of the tax year to which the tax is paid. Interest will be charged daily for the period up to the date of payment of the tax.

  The interest charged in the preceding paragraph shall not be deducted when calculating the taxable income.

  Article 5 The interest mentioned in Article XNUMX of the Enterprise Income Tax Law shall be calculated according to the benchmark interest rate of RMB loans published by the People's Bank of China in the tax year to which the tax is payable and in the same period as the tax payment period plus XNUMX percentage points.

  Enterprises that provide relevant materials in accordance with the provisions of Article XNUMX of the Enterprise Income Tax Law and these Regulations may only calculate the interest at the benchmark interest rate of RMB loans specified in the preceding paragraph.

  Article 10 If the business transactions between an enterprise and its related parties do not conform to the arm's length principle, or the enterprise implements other arrangements that do not have reasonable commercial purposes, the tax authority has the right to, within XNUMX years from the tax year in which the business occurs, Make tax adjustments.

Chapter VII Collection Management

  Article XNUMX The “place of enterprise registration” as mentioned in Article XNUMX of the Enterprise Income Tax Law refers to the place where the enterprise is registered in accordance with relevant state regulations.

  Article XNUMX When an enterprise collectively calculates and pays enterprise income tax, it shall calculate the taxable income in a unified manner, and the specific measures shall be formulated separately by the competent finance and taxation departments of the State Council.

  Article XNUMX The main institutions and places mentioned in Article XNUMX of the Enterprise Income Tax Law shall meet the following conditions at the same time:

  (XNUMX) To be responsible for the supervision and management of the production and business activities of other institutions and sites;

  (XNUMX) It has complete account books and vouchers, which can accurately reflect the income, cost, expense and profit and loss of each institution and place.

  Article XNUMX The advance payment of enterprise income tax by monthly or quarterly shall be determined by the tax authorities.

  When an enterprise prepays enterprise income tax by monthly or quarterly in accordance with Article XNUMX of the Enterprise Income Tax Law, it shall prepay according to the actual monthly or quarterly profit amount; if it is difficult to prepay according to the monthly or quarterly actual profit amount, it may The monthly or quarterly average amount of taxable income for the previous tax year shall be prepaid, or the prepayment shall be made in accordance with other methods approved by the tax authority.Once the prepayment method is determined, it cannot be arbitrarily changed within the tax year.

  Article XNUMX An enterprise shall, in accordance with the time limit stipulated in Article XNUMX of the Enterprise Income Tax Law, submit a prepaid enterprise income tax return and an annual enterprise income tax return to the tax authorities, regardless of profit or loss during the tax year. , financial accounting reports and other relevant materials required by tax authorities to be submitted.

  Article XNUMX If the income of an enterprise is calculated in a currency other than RMB, when prepaying the enterprise income tax, the taxable income shall be calculated by converting it into RMB at the midpoint of the RMB exchange rate on the last day of the month or quarter.When the tax is settled at the end of the year, if the tax has been prepaid monthly or quarterly, it will not be re-converted and calculated, and only the part that has not paid corporate income tax in the tax year will be based on the central parity of the RMB exchange rate on the last day of the tax year. Convert it into RMB to calculate the taxable income.

  Upon inspection and confirmation by the tax authorities, if an enterprise undercounts or overcounts the income specified in the preceding paragraph, it shall convert the undercounted or overstated income into the middle rate of the RMB exchange rate on the last day of the previous month when the tax payment or tax refund is confirmed. Calculate the taxable income in RMB, and then calculate the tax that should be paid or refunded.

Chapter XNUMX Supplementary Provisions

  Article XNUMX The enterprises whose establishment has been approved before the promulgation of this Law as mentioned in the first paragraph of Article XNUMX of the Enterprise Income Tax Law refers to the enterprises whose registration has been completed before the promulgation of the Enterprise Income Tax Law.

  Article XNUMX For enterprises established in the Hong Kong Special Administrative Region, the Macao Special Administrative Region and the Taiwan Region, the relevant provisions of the second and third paragraphs of Article XNUMX of the Enterprise Income Tax Law shall apply.

  第一百三十二条 本条例自2008年1月1日起施行。1991年6月30日国务院发布的《中华人民共和国外商投资企业和外国企业所得税法实施细则》和1994年2月4日财政部发布的《中华人民共和国企业所得税暂行条例实施细则》同时废止。

Source of this article: http://jdjc.mof.gov.cn/fgzd/202201/t20220125_3784682.htm

Release date: January 2022, 01 The Ministry of Finance of the People's Republic of China All rights reserved. If you need to reprint, please indicate the source. It is only for self-study and sharing of tax law.
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