Introduction to the Enterprise Income Tax Regime

The primary laws, regulations and measures in respect of enterprise income tax are as follows:

1. Law of the People’s Republic of China on Enterprise Income Tax (the “EITL”);  
2. Regulations on the Implementation of the Enterprise Income Tax Law of the People’s Republic of China (the “EIT Regulations”); and
3. Implementation Measures of Special Tax Adjustments (Provisional) (the “Measures”).

The EITL was passed by the 10th National People's Congress on 16 March 2007 and took effect from 1 January 2008.  The EIT Regulations were issued by the States Council and the Measures were jointly issued by the State Administration of Taxation.

The Enterprise Income Tax applies to all enterprises except for sole individual proprietorship enterprises and partnership enterprises.

Our guide to the Enterprise Income Tax Law will cover the following matters:

1. Liability to Tax, Applicable Tax Rates
2. Taxable Income and Deductions;
3. Prevention of Double Taxation
4. International Anti-Avoidance
5. Preferential Tax Treatment