Shanghai Corporate Income Tax

Shanghai Taxation Service
Shanghai Hotline: 021- 68877368      Tel (Wechat): +86 18101649652
Email: anitayao@citilinkia.com

Shanghai corporate income tax is a government levy (tax) imposed on entities (taxpayers) that varies with the income or profits (taxable income) of the taxpayer. Tax rates may vary by type or characteristics of the taxpayer. Capital gains may be taxed at different rates than other income.

Shanghai Corporate Income Tax-Taxpayer
Taxpayers are divided into resident enterprise and non-resident enterprise. Resident enterprises referred to enterprises which were founded within the territory of China, or founded in accordance with the law of foreign country (region), but actual management institution is in China. Non-resident enterprise means the enterprise is founded in accordance with the law of a foreign country (region) and whose actual management organ is not established within the territory of China, but the enterprise set up establishments within the territory of China. Or place of institutions within Chinese territory without establishments or places in China, but has the income originating form Chinese enterprises.

Shanghai Corporate Income Tax-Levy Object
Within the territory of the People's Republic of China, Shanghai enterprise and other income earning organizations (hereinafter referred to as enterprises) are the taxpayers. They shall pay corporate income tax in accordance with this law.

A resident enterprise shall pay corporate income tax from both the income inside and outside. Establishments or places set by non-resident enterprise in China shall pay corporate income tax sourced from incomes inside the territory of China and income sourced outside the territory of China with its actual connection with working sectors or places. If non-resident enterprise sets up working sectors or places in China, but its incomes are not connected with these places, then they shall pay the income corporate income tax originating in China.

Shanghai Corporate Income Tax-Tax Base and Amount
The taxpayers shall pay the tax payable at a rate of 25% in compliance with the taxable income; for the non-resident enterprises that have set up establishments or places within Shanghai or though they have set up establishments or places within Shanghai, the said incomes are not effectively connected with such establishments or places, they shall pay the enterprise income taxes derived within China at an applicable tax rate of 20%. Meanwhile, all small low-profit enterprises that meet the relevant criteria shall enjoy a reduce tax rate of 5% and the high and new technology enterprises that require key state support are subject to the applicable enterprise income tax rate with a reduction of 10%.

The balance of the taxable income amount is equal to the total income of enterprise of each tax year with the deduction of non-levying income, tax-free income, all kinds of deductions and the offset of losses of the previous year.

Shanghai Corporate Income Tax-Tax Payable Deadline
After the end of a month or quarter and within 15 days the enterprise shall submit the tax report table to tax authorities and prepay corporate income tax. After the end of a year and within 5 months the enterprise shall submit the annual enterprise income tax report to tax authorities and clear all the settlements. If enterprises terminate business activities in the middle of a year, they shall settle corporate income taxes with the tax authority from the actual termination date to 60 days later.

Contact Us

If you have further queries in Shanghai Corporate Income Tax, don’t hesitate to contact ATAHK at anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Hong Kong hotline at 852-27826888 or Shanghai hotline at 86-21-68877368 21-58822399, or emailing to hkcfm-shanghai@163.com.
You are welcome to our company 15F, No.855 World Plaza, South Pudong Road, Pudong District, Shanghai, China.