The Enterprise Income Tax Law was promulgated in 2007 and amended in 2017 and 2018 respectively. The latest revision entered into force on December 29, 2018.

There are 98 articles in total.

The key points are as follows:

1.Within the territory of China, the enterprises and other organizations that have incomes shall be payers of the enterprise income tax and shall pay their enterprise income taxes in accordance with this Law.(Article 1)

2.Enterprises shall be divided into resident enterprises and non-resident enterprises. (Article 2)

3.A resident enterprise means an enterprise lawfully incorporated in China, or an enterprise lawfully incorporated pursuant to the laws of a foreign country (Article region) but where actual management functions are conducted in China. A resident enterprise shall pay the enterprise income tax on its incomes derived from both inside and outside China.(Article 2 and 3)

4.A non-resident enterprise means, an enterprise lawfully incorporated pursuant to the laws of a foreign country (region) that has an office or premises established in China with no actual management functions performed in China, or an enterprise that has income derived from or accruing in China although it does not have an office or premises in China. For a non-resident enterprise having offices or establishments inside China, it shall pay enterprise income tax on its incomes derived from China as well as on incomes that it earns outside China but which has real connection with the said offices or establishments. For a non-resident enterprise having no office or establishment inside China, or for a non-resident enterprise whose incomes have no actual connection to its institution or establishment inside China, it shall pay enterprise income tax on the incomes derived from China. (Article 2 and 3)

5.The enterprise income tax rate shall be 25%.(Article 4)