The taxpayers of Enterprise Income Tax include any enterprise and other organizations (not applicable to sole proprietorships and partnerships) which have income derived from China. Including resident enterprises and non-resident enterprises.

a. Resident enterprises: enterprises which are established in China according to Chinese law or established in accordance with laws of foreign countries (regions) but have actual management institutions in China.

b. Non-resident enterprises: enterprises which are established in accordance with laws of foreign countries (regions) and the actual management institutions are not in China but have established institutions or sites in China, or which have not established institutions or sites in China but have income derived from China.

a. Resident enterprises: income derived from China and abroad shall be subject to enterprise income tax.

b. Non-resident enterprises: where an institution or site is established within the territory of China, the income derived from China and the income derived outside the territory of China but actually connected with the institution or site established within the territory of China are subject to enterprise income tax. Where an enterprise has no insitutions or sites within the territory of China or has institutions or sites but the income derived from the establishment is not actually related to such institutions or sites, the income derived from sources within the territory of China shall be subject to enterprise income tax.

The enterprise income tax is generally calculated on the basis of the taxable income amount and the following tax rates. The calculation formula of tax payable is:

Tax Payable = Taxable Income × Enterprise Income Tax Rate

Tax Rates:

Enterprise Type	Tax Rate
Resident enterprises	25%
Non-resident enterprises which have establishment of institutions or sites in China and have income actually related to the such establishment.
Non-resident Enterprises which have no establishment of institutions or site in China.	20%            （Actual10%）
Non-resident enterprises which has establishment, but the income derived from the establishment is not actually related to the establishment of such institutions and sites.
Small and low-profit enterprises (starting from January 1, 2019, small and low-profit enterprises, no matter on actual base or deemed base, the enterprise income tax shall be calculated and paid at the rate of 20% after 25% deduction of the taxable income if the annual taxable income is less than RMB 1 million. For the part of annual taxable income exceeding 1 million but not exceeding 3 million, the enterprise income tax shall be calculated and paid at the rate of 20% after 50% deduction of the taxable income.	20%
High-tech enterprises, technologically advanced service enterprises (starting from January 1, 2017)	15%

a.  Enterprises operating in autonomous regions requesting for preferential treatment and incentives may be, upon the approval of the People's Government at provincial level, given tax reductions or exemptions for a specified period;

b. Tax exemption or tax reduction may be granted to enterprises or businesses that meet the relevant rules of the State, such as high-technology enterprises and enterprises engaged in tertiary industry set up in line with the relevant regulations of the State, enterprises using wastes as their key raw materials, newly-registered enterprises located in the revolutionary base areas, minority nationality areas, remote areas and poor areas approved by the State, enterprises-suffering from serious natural disasters, newly-registered service enterprises providing social employment opportunities, factories and farms run by schools under the educational administration departments, welfare production enterprises belonging to the civil administration departments, township enterprises, State-owned agricultural enterprises, etc..