How to calculate the income tax of foreign-funded enterprises

Calculation of income tax on foreign-funded enterprises

（1） Income tax of foreign-invested enterprises and foreign enterprises , Calculated according to the taxable income , The tax rate is 30% ; Local income tax , It is also calculated according to the taxable income , The tax rate is 3% , The total of the two is 33% .

（2） The foreign enterprise has no establishment in China 、 place , Obtain rent from within China 、 interest 、 profits 、 Royalties and other income , Or even though there is a place 、 Institutions , But the above-mentioned income is different from the institution 、 The place has no actual connection , The income tax rate is 20% .

（3） If the income of a foreign-invested enterprise from outside China has already paid the income tax amount outside China , It can be deducted from the tax payable when the tax payment is summarized , However, the amount deducted shall not exceed the amount of tax payable in accordance with the Chinese tax law .

 

Preferential policies for income tax of foreign-funded enterprises

Although the tax rate of foreign-funded companies is high , But you can enjoy many preferential policies , For example, the following ：

（1） If a foreign-funded enterprise establishes an institution or place in the special economic zone to engage in production 、 Enterprise income tax may be reduced or exempted by 15% for business or technological development ;

（2） Located in coastal economic open zones and special economic zones 、 Productive foreign-invested enterprises in the old urban area of the city where the economic and Technological Development Zone is located , At a reduced rate of 24% ;

（3） Located in coastal economic open zones and special economic zones 、 Enterprises with foreign investment located in the old urban areas of the cities where the economic and technological development zones are located or in other areas as stipulated by the State Council , Belonging to port 、 traffic 、 energy 、 Wharf or other projects encouraged by the state , It can be levied at a reduced tax rate of 15% , The specific measures shall be formulated by the State Council .

 

VAT preference for foreign-funded enterprises

1、 Directly used in scientific research 、 Imported instruments for scientific experiments and teaching 、 equipment , VAT exemption .

2、 Foreign governments 、 Imported goods and materials with free assistance from international organizations 、 equipment , Incoming processing 、 Imported equipment for assembly and compensation trade , VAT exemption .

3、 Self produced goods exported by foreign-invested enterprises on their own or entrusted foreign trade enterprises , Unless otherwise specified , VAT will be exempted 、 Offset 、 Tax refund management measures .

4、 Goods exported by small-scale taxpayers of foreign-invested enterprises on their own account or on commission , All are exempt from VAT .

Reference resources

1. ^ foreign enterprise   Registration process and conditions of foreign-funded companies _ What information does the registered foreign investment representative office need _ Annual inspection of foreign-funded enterprises _ Cancellation of foreign-funded enterprises _ Acting for the registration of foreign-funded companies http://www.91kaiye.cn/wzzc/
2. ^ Calculation formula of enterprise income tax   What is the formula for calculating the enterprise income tax rate - corporate income tax https://www.91kaiye.cn/article-12232-1.html