企业所得税法实施条例英文

The Release of Regulations on the Implementation of Enterprise Income Tax

The Release of Regulations on the Implementation of Enterprise Income Tax Law of the People's Republic of China by the State Council

Order of the State Council [2007] No. 512

December 6, 2007

Regulations on the Implementation of Enterprise Income Tax Law of the People's Republic of China, approved at the 197th Executive Meeting of the State Council on November 28, 2007, are hereby promulgated and shall come into effect as of January 1, 2008.

Premier: Wen Jiabao

Attachment: Regulations on the Implementation of Enterprise Income Tax Law of the People's Republic of China

Chapter I General Provisions

Article 1 In accordance with the provisions of the Enterprise Income Tax Law of the People's Republic of China (hereinafter called the "Enterprise Income Tax Law"), this Regulation is hereby formulated.

Article 2 The individual proprietorship enterprises and the partnership enterprises indicated in the Article 1 of the Enterprise Income Tax Law refer to the individual proprietorship enterprises and the partnership enterprises established in accordance with the provisions of Chinese laws and administrative rules.

Article 3 The enterprises established in accordance with Chinese laws and administrative rules within China's territory, as indicated in the Article 2 of the Enterprise Income Tax Law, include the companies, the institutions, the social organizations, and other organizations with income sources.

The enterprises established in accordance with the foreign (regional) laws, as indicated in the Article 2 of the Enterprise Income Tax Law, refer to enterprises and other organizations with income sources which are established in accordance with the foreign (regional) law.

Article 4 The in-fact administrative organizations indicated in the Article 2 of the Enterprise Income Tax Law refer to the organizations that actually and comprehensively manage and control the production and operation, staff, account, property and other aspects of enterprises.

Article 5 The organizations and places indicated in the Clause 3 of the Article 2 of the Enterprise Income Tax Law refer to the organizations and places wherein the domestic production and operation activities are conducted, including:

1. Management office, business office, representative office;

2. The places used as farm, factory, and exploitation of natural resources;

3. Places where the labor service is provided;

4. Places where the engineering works in fields like construction, installation, assembly, repair and exploration are conducted;

5. Other organizations and places wherein other production and operation activities are conducted.

If non-resident enterprises authorize business agents to engage in production and operation activities within Chinese territory, including entrusting units or individuals to sign contracts, store goods or deliver goods etc, such business agents shall be deemed as the organization or establishment set up by the non-resident enterprises within Chinese territory.

Article 6 The incomes indicated in the Article 3 of the Enterprise Income Tax Law include the income from selling goods, the income from providing labor service, the income from property transfer, the income from equity investment such as the dividends and bonus, the income from interest, the income from rental, the income from royalty fee, the income from donation and other incomes.

Article 7 The incomes from Chinese territory and foreign territory which are indicated in Article 3 of the Enterprise Income Tax Law shall be recognized in accordance with the following principles:

1. The incomes from selling goods shall be recognized in terms of places where the sales activities happen;

2. The incomes from providing labor service shall be recognized in terms of places where the labor services provide;

3. As to the incomes from property transfer, if the income from transferring real properties, it shall be recognized in terms of where the real property is located; if transferring the movable properties, it shall be recognized in terms of where the enterprise/organization/place conducting the transfer of the movable properties is located; if transferring the equity investment assets, it shall be recognized in terms of where the enterprise accepting the equity investment is located;

4. For the income from equity investment such as the income from dividend and bonus, it shall be recognized in terms of where the enterprise distributing the dividend and bonus is located;

5. For the income from interest, rental and royalty fee, it shall be recognized in terms of where the enterprise/organization/place bearing or paying the interest, rental and royalty fee is located;

6. For other incomes, they shall be recognized in terms of the rules of the competent finance and taxation departments under the State Council;

Article 8 The actual associations indicated in the Article 3 of the Enterprise Income Tax Law mean organizations and places established by non-resident enterprises within Chinese territory own equities, creditor's rights generated by themselves and own, manage or control the properties generated by themselves.

Chapter II Taxable Incomes

Section 1 General Provisions

Article 9 The amount of income taxable of enterprise shall be computed on the accrual basis. For the income and expense belonging to the current period, regardless of whether they have received or paid, they shall be recognized as the income and expense in the current period; for the income and expense not belonging to the current period, even if they have received or paid in the current period, they shall not be recognized as the income and expense in the current period, unless otherwise prescribed in these Regulations and the rules of the competent finance and taxation departments under the State Council.

Article 10 The loss mentioned in the Article 5 of the Enterprise Income Tax Law means the negative balance (less than zero) of total income minus tax-exemption income minus various deductions in each taxpaying year in accordance with the provisions of the Enterprise Income Tax Law and these Regulations.