Any FIE that has related-party transactions, or meets the country-by-country reporting test, must file the annual related-party transaction return (the “Associated Party Business Reporting Form”) by 31 May. 凡是存在关联交易或符合国别报告条件的外商投资企业，均须于5月31日前报送年度关联业务往来报告表（关联申报）。 Three contemporaneous-documentation files — master file, local file, and specified-matters file … Related-Party Disclosure and Contemporaneous Documentation for Foreign-Invested Enterprises (2026)Read more
财税 / Finance & Tax
Corporate Tax Residency and CFC Rules for Foreign-Invested Enterprises in China (2026)
A company incorporated in China, or incorporated abroad but effectively managed in China, is a Chinese tax resident and is taxed on its worldwide income, not merely its China-source income. 在中国境内成立，或在境外成立但实际管理机构在中国境内的企业，为中国税收居民，就全球所得纳税，而非仅就中国境内所得纳税。 The “place of effective management” test looks at where … Corporate Tax Residency and CFC Rules for Foreign-Invested Enterprises in China (2026)Read more
Tax Inspection and Voluntary Disclosure for Foreign-Invested Enterprises in China: Handling a SAT Audit and Self-Correction
A tax inspection of a foreign-invested enterprise usually begins with a “double-random, one-open” (双随机、一公开) selection, not a tip-off. 外资企业的税务稽查通常始于”双随机、一公开”的抽查选案，而非举报。 Self-correction before the focused inspection is the cheapest exit: truthful disclosure, voluntary back-payment of tax and late fees draws mitigated, reduced … Tax Inspection and Voluntary Disclosure for Foreign-Invested Enterprises in China: Handling a SAT Audit and Self-CorrectionRead more
Tax Residency for Foreign Individuals in China: The 183-Day Test, the Six-Year Rule and Treaty Relief
In China, tax residency turns on domicile or an aggregate 183-day stay in a tax year; a resident is taxed on worldwide income, a non-resident only on China-source income. 在中国，税收居民身份取决于住所或一个纳税年度内累计 183 天的居住；居民就境内外所得纳税，非居民仅就境内所得纳税。 “Domicile” means habitual residence from household, family or … Tax Residency for Foreign Individuals in China: The 183-Day Test, the Six-Year Rule and Treaty ReliefRead more
Withholding tax on outbound payments
The withholding tax (WHT) statutory rate is 10% of the gross amount on dividends, interest, royalties and rent — the passive, China-sourced income of a non-resident under EITL Article 3(3). 预提所得税法定税率为全额的 10%，适用对象为股息、利息、特许权使用费与租金——即非居民依《企业所得税法》第三条第三款的被动性、中国来源所得。 The taxable base is the full amount received … Withholding tax on outbound paymentsRead more
IC and software tax breaks plus VAT-exempt technology transfer
Technology transfer, development and related consulting services are VAT-exempt from 1 January 2026 to 31 December 2027. 技术转让、技术开发及相关咨询服务在2026年1月1日至2027年12月31日期间免征增值税。 Encouraged integrated-circuit and software firms enjoy reduced or exempted corporate income tax. 国家鼓励的集成电路与软件企业享受企业所得税减免。 Key software enterprises are taxed at 10%, while high-tech … IC and software tax breaks plus VAT-exempt technology transferRead more
Transfer pricing rules for FIEs
China’s transfer pricing rests on the arm’s-length principle (EIT Law Art. 41); authorities may adjust prices departing from independent-party benchmarks and charge back-tax plus interest. 中国转让定价以独立交易原则为基础（企业所得税法第四十一条）；对偏离独立方基准的定价可作调整并补税加收利息。 Every qualifying enterprise must file the Annual Associated-Party Transaction Reporting Form with its CIT … Transfer pricing rules for FIEsRead more
Tax treaty benefits for foreign investors
As of 2025, China’s tax-treaty network covers 114 countries and regions — including 90 Belt and Road partners — among the largest in the world. 截至 2025 年，中国税收协定网络已覆盖 114 个国家和地区（含 90 个共建”一带一路”伙伴），居世界前列。 A treaty reduces the 10% domestic WHT: a … Tax treaty benefits for foreign investorsRead more
R&D super-deduction and VAT-law transition: 2026 tax breaks for foreign-funded firms
Qualified R&D expenses incurred by enterprises are super-deducted at 100% for corporate income tax from 1 January 2023. 自2023年1月1日起，企业符合条件的研发费用按实际发生额100%加计扣除。 Integrated-circuit and industrial-motherboard firms enjoy a 120% R&D super-deduction through 31 December 2027. 集成电路及工业母机企业自2023年1月1日至2027年12月31日享受120%的研发费用加计扣除。 Technology transfer and development services are exempt … R&D super-deduction and VAT-law transition: 2026 tax breaks for foreign-funded firmsRead more
R&D super-deduction for foreign-invested firms
Since 1 January 2023, the standard R&D super-deduction is 100% (so RMB 1 of expense yields RMB 2 of deduction), confirmed as a long-term arrangement. 自 2023 年 1 月 1 日起，标准研发费用加计扣除比例为 100%（每 1 元费用带来 2 元扣除），已明确为长期制度安排。 IC and industrial-machine-tool … R&D super-deduction for foreign-invested firmsRead more