National People's Congress of the People's Republic of China

“ For a non-resident enterprise with organizations or establishments within China, it shall pay enterprise income tax on its income derived from within China as well as income derived from outside China but in fact related to such organizations or establishments. For a non-resident enterprise without any organizations or establishments within China, or with organizations or establishments within China but its income is not in fact related to such organizations or establishments, it shall pay enterprise income tax on its income derived from within China. ”

“ However, for enterprises that have yet to enjoy preferential treatment due to their failure to make any profits, the preferential treatment period shall commence from the year this Law becomes effective. ”

“ State-encouraged high and new technology enterprises established within special zones developed in accordance with the law for the promotion of foreign economic cooperation and technological exchanges and such other zones as administered by the State Council for the implementation of the above-mentioned special policies may continue to enjoy transitional preferential tax treatment with the specific measures to be formulated by the State Council. ”

“ Article 31 A venture capital enterprise engaged in venture capital investments supported and encouraged by the State may deduct from the taxable income a certain percentage of the total investment amount. ”

“ The Enterprise Income Tax Law of the People’s Republic of China, adopted at the 5th Session of the 10th National People's Congress of the People’s Republic of China on March 16, 2007, is hereby promulgated and shall come into effect on January 1, 2008. ”