PwC发布的中国投资指南 PwC Doing Business and Investing in China.ppt

155 Taxation of corporations Tax carry-back is not allowed ? Property loss Under the CITL, property losses that include losses in stock count, damage or obsolescence of fixed assets or current assets, bad debts and extraordinary losses suffered as a result of a natural disaster, for example, will be deductible after verification by the tax authorities. Tax computation Taxable income Taxable income is defined as the amount from the gross income in a tax year after deduction of non-taxable income, tax exempt income, various deductions and allowable losses brought forward from previous years. See Appendix III for sample calculations. Taxable income in foreign currency should be converted into renminbi to come up with the tax payable. Tax rates The corporate income tax rate is standardised at 25% for all tax resident enterprises and non-tax resident enterprises, which derive income that is effectively connected with their establishments or places of business in China. Also see Appendix I. Tax credits For a tax resident enterprise that generates foreign source income or a non-tax resident enterprise that derives foreign sourced income that is effectively connected to its establishments or places of business in China, it may deduct the foreign income tax paid on such income sourced outside China from the amount of tax payable. However, the deductible amount may not exceed the amount of Chinese income tax otherwise payable in respect of the foreign source income. Doing Business and Investing in China 156 Taxation of corporations If the foreign income tax paid on foreign sourced income is less than the credit limit, the foreign tax can be credited against the Chinese tax payable. If the foreign tax exceeds the limit, the unrelieved balance of the foreign tax paid may be offset against the tax payable in subsequent years, up to a maximum of five years. An enterprise applying for a foreign tax credit must submit the original tax receipts of the relevant tax authorities to su