主席令第四十五号
（Adopted at the Fourth Session of the Seventh National People's Congress on April 9， 1991， promulgated¹ by Order No. 45 of the President of the People's Republic of China on April 9， 1991 and effective as of July 1， 1991）
颁布日期：19910409 　实施日期：19910701 　颁布单位：全国人民代表大会

　　Article 1 Income tax shall be paid in accordance with the provisions of this Law by enterprises with foreign investment within the territory of the People's Republic of China on their income derived² from production， business operations and other sources. Income tax shall be paid in accordance with the provisions of this Law by foreign enterprises on their income derived from production， business operations and other sources within the territory of the People's Republic of China.

　　Article 2 “Enterprises with foreign investment” referred to in this Law mean Chinese-foreign equity³ joint⁴ ventures， Chinese-foreign contractual joint ventures and foreign-capital enterprises that are established in China.

　　“Foreign enterprises” referred to in this Law mean foreign companies， enterprises and other economic organizations which have establishments or places in China and engage in production or business operations， and which， though without establishments or places in China， have income from sources within China.

　　Article 3 Any enterprise with foreign investment which establishes its head office in China shall pay its income tax on its income derived from sources inside and outside China. Any foreign enterprise shall pay its income tax on its income derived from sources within China.

　　Article 4 The taxable income of an enterprise with foreign investment and an establishment or a place set up in China to engage in production or business operations by a foreign enterprise， shall be the amount remaining from its gross income in a tax year after the costs， expenses and losses have been deducted⁶.

　　Article 5 The income tax on enterprises with foreign investment and the income tax which shall be paid by foreign enterprises on the income of their establishments or places set up in China to engage in production or business operations shall be computed⁷ on the taxable income at the rate of thirty percent， and local income tax shall be computed on the taxable income at the rate of three percent.

　　Article 6 The State shall， in accordance with the industrial policies， guide the orientation⁸ of foreign investment and encourage the establishment of enterprises with foreign investment which adopt advanced technology and equipment and export all or greater part of their products.

　　Article 7 The income tax on enterprises with foreign investment established in Special Economic Zones， foreign enterprises which have establishments or places in Special Economic Zones engaged in production or business operations， and on enterprises with foreign investment of a production nature in Economic and Technological⁹ Development Zones， shall be levied¹⁰ at the reduced rate of fifteen percent. The income tax on enterprises with foreign investment of a production nature established in coastal¹¹ economic open zones or in the old urban districts of cities where the Special Economic Zones or the Economic and Technological Development Zones are located， shall be levied at the reduced rate of twenty-four percent.

　　The income tax on enterprises with foreign investment in coastal economic open zones， in the old urban districts of cities where the Special Economic Zones or the Economic and Technological Development Zones are located or in other regions defined by the State Council， within the scope of energy， communications， harbour， wharf¹² or other projects encouraged by the State， may be levied at the reduced rate of fifteen percent. The specific measures shall be drawn¹³ up by the State Council.

　　Article 8 Any enterprise with foreign investment of a production nature scheduled to operate for a period of not less than ten years shall， from the year beginning to make profit， be exempted¹⁴ from income tax in the first and second years and allowed a fifty percent reduction in the third to fifth years. However， the exemption¹⁵ from or reduction of income tax on enterprises with foreign investment engaged in the exploitation of resources such as petroleum¹⁶， natural gas， rare metals， and precious metals shall be regulated separately by the State Council. Enterprises with foreign investment which have actually operated for a period of less than ten years shall repay the amount of income tax exempted or reduced already.

　　The relevant regulations， promulgated by the State Council before the entry into force of this Law， which provide preferential treatment of exemption from or reduction of income tax on enterprises engaged in energy， communications， harbour， wharf and other major projects of a production nature for a period longer than that specified¹⁷ in the preceding paragraph， or which provide preferential treatment of exemption from or reduction of income tax on enterprises engaged in major projects of a non-production nature， shall remain applicable after this Law enters into force.

　　Any enterprise with foreign investment which is engaged in agriculture， forestry¹⁸ or animal husbandry and any other enterprise with foreign investment which is established in remote underdeveloped areas may， upon approval by the competent department for tax affairs under the State Council of an application filed by the enterprise， be allowed a fifteen to thirty percent reduction of the amount of income tax payable¹⁹ for a period of another ten years following the expiration²⁰ of the period for tax exemption or reduction as provided for in the preceding two paragraphs.

　　After this Law enters into force， any modification²¹ to the provisions of the preceding three paragraphs of this Article on the exemption from or reduction of income tax on enterprises shall be submitted by the State Council to the Standing²² Committee of the National People's Congress for decision.

　　Article 9 The exemption from or reduction of local income tax on any enterprise with foreign investment which operates in an industry or undertakes a project encouraged by the State shall， in accordance with the actual situation， be at the discretion²³ of the people's government of the relevant province， autonomous²⁴ region or municipality directly under the Central Government.

　　Article 10 Any foreign investor²⁵ of an enterprise with foreign investment which reinvests its share of profit obtained from the enterprise directly into that enterprise by increasing its registered capital， or uses the profit as capital investment to establish other enterprises with foreign investment to operate for a period of not less than five years shall， upon approval by the tax authorities of an application filed by the investor， be refunded²⁶ forty percent of the income tax already paid on the reinvested amount. Where regulations of the State Council provide otherwise in respect of preferential treatment， such provisions shall apply. If the investor withdraws its reinvestment before the expiration of a period of five years， it shall repay the refunded tax.

　　Article 11 Losses incurred²⁷ in a tax year by any enterprise with foreign investment and by an establishment or a place set up in China by a foreign enterprise to engage in production or business operations may be made up by the income of the following tax year. Should the income of the following tax year be insufficient²⁸ to make up for the said losses， the balance may be made up by its income of the further subsequent year， and so on， over a period not exceeding five years.

　　Article 12 Any enterprise with foreign investment shall be allowed， when filing a consolidated²⁹ income tax return， to deduct⁵ from the amount of tax payable the foreign income tax already paid abroad in respect of the income derived from sources outside China. The deductible amount shall， however， not exceed the amount of income tax otherwise payable under this Law in respect of the income derived from sources outside China.

　　Article 13 The payment or receipt of charges or fees in business transactions between an enterprise with foreign investment or an establishment or a place set up in China by a foreign enterprise to engage in production or business operations， and its associated enterprises， shall be made in the same manner as the payment or receipt of charges or fees in business transactions between independent enterprises. Where the payment or receipt of charges or fees is not made in the same manner as in business transactions between independent enterprises and results in a reduction of the taxable income， the tax authorities shall have the right to make reasonable adjustment.

　　Article 14 Where an enterprise with foreign investment or an establishment or a place set up in China by a foreign enterprise to engage in production or business operations is established， moves to a new site， merges³⁰ with another enterprise， breaks up， winds up or makes a change in any of the main entries of registration³¹， it shall present the relevant documents to and go through tax registration or a change or cancellation³² in registration with the local tax authorities after the relevant event is registered， or a change or cancellation in registration is made with the administrative³³ agency for industry and commerce.

　　Article 15 Income tax on enterprises and local income tax shall be computed on an annual basis and paid in advance in quarterly instalments. Such payments shall be made within fifteen days from the end of each quarter and the final settlement shall be made within five months from the end of each tax year. Any excess payment shall be refunded and any deficiency shall be repaid