文档介绍：< 0 > an Shira & Associates CHINA TAX OVERVIEW & CIT UNIFICATION UPDATE ? 2007 Dezan Shira & Associates Ltd. All rights reserved. < 1 > ex Part One China CIT Unification Part Three Implementation Rule of EIT & FEIT . New Rule < 2 > t One China CIT Unification < 3 > t One: China CIT Unification 5 Expenses Deduction 4 Grandfathering Rule 3 12 Residence Concept Tax Rate Tax Incentives < 4 > idence Concept Item China tax resident Non-China tax resident Definition Enterprises established in China Foreign enterprises established outside China but its effective management is based in China Enterprises established outside China Tax Implication Tax on worldwide e Tax on China- sourced e < 5 > mple Help You to Understand the Definition < 6 > clusion of the Sample Source of e e derived from China e derived from outside China Current Tax Law PE, pay tax Exemption New Law Pay tax as residence Pay tax as residence < 7 > Expenses Deduction 4 Grandfathering Rule 3 12 Residence Concept Tax Rate Tax Incentives Part One: China CIT Unification < 8 > n Changes — Tax Rate Item Standard Rate Reduced Rate Withholding e Tax (“ WHT ”) Tax rate 25% 20% 20% (Reduced to 10%) Applicable Enterprises Most enterprises Small and thin-profit enterprises es derived from profits, interest, rentals, royalties and other es from sources in China. < 9 > ustration for small and thin profit enterprise Tax rate 20% Recognition criteria For manufacturing enterprises Total assets < RMB 30 Million Total employees <100 persons Taxable e < RMB 300,000 For non-manufacturing enterprises Total assets < RMB 10 Million Total employees < 80 persons Taxable e < RMB 300,000