Circular Of The State Administration Of Taxation On The Issue Of Preferential Tax Policies For Non Resident Enterprises With Small Profit Margins

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the central government and cities under separate planning shall:

Whether the non resident enterprises enjoy the preferential tax policies for small profit enterprises stipulated in the enterprise income tax law is hereby clarified as follows:

The small profit enterprise stipulated in the twenty-eighth section of the enterprise income tax law refers to the enterprise that has all the production and operation activities generated by the enterprise and bears the duty of paying enterprise income tax in China.

Therefore, it is not applicable to the non resident enterprises that have the duty to pay taxes in China only according to the stipulation of this stipulation for the small and small profit enterprises that meet the requirements to levy enterprise income tax at a reduced rate of 20%.

State Administration of Taxation

July 3rd, two, eight