How should foreign-invested enterprises pay taxes?

english.gov.cn Updated: September 4, 2018

A foreign-funded business-starting investment enterprise (hereafter referred as FBIE) shall make tax declaration in accordance with the tax laws of the state. As to a non-legal-person organization, in accordance with the law, it may request all the investing parties to file returns for enterprise income taxes on their own, or file an application by itself, after the application has been approved, it shall, in accordance with the law, calculate and pay the enterprise income tax in a consolidated way.

The concrete regulatory measures concerning the levy of enterprise income tax upon the non-legal-person FBIEs shall be promulgated separately by the State Administration of Taxation.

It’s an international practice that non-legal-person partnership FBIEs enjoys low income taxation rate, and non-legal-person FBIEs have the same request in China. Though not explicitly written in the Provisions Concerning the Administration of Foreign-funded Business-starting Investment Enterprises, it retains that the tax authorities will formulate the specific corporate income tax collection management measures of non-legal-person FBIEs.