Please follow links below to learn more about the Unification of Enterprise Income Tax Law in China in our latest updates:

Dbriefs Webcast - special edition:  playback in English/Putonghua

• New Chinese enterprise income tax law: What will the detailed implementation rules mean to you?

Publication

• New   Enterprise Income Tax Law and Implementation Rules of the People’s Republic of China
  
  This 100-page booklet prepared by Deloitte tax professionals has become a popular and helpful desktop reference with side-by-side Chinese and English translation. Publication will soon be available in Japanese and Chinese as well.
  

Press release

• Implementation Rules under China’s Unified Enterprise Income Tax Law bring clarity to many issues - important questions remain (11 December 2007)
  The Enterprise Income Tax Law takes effect on 1 January 2008.  Enterprises must immediately review the new guidance in these Rules to determine how it affects their business model, investment structure and financing strategy.
  
  
• China's Unified Enterprise Income Tax Law brings greater clarity, transparency & fairness to the tax system- a favourable development for all market participants (16 March 2007)
  Enterprise Income Tax Law takes effect on 1 January 2008, enterprises need to review their business model, investment structure and financing strategy.

Our commentary

• PRC Tax - Implementation Rules - Breaking News (Issue P20/2007)
  The new Enterprise Income Tax Law, enacted on 16 March 2007 (New Law), will be effective as from 1 January 2008. Under China’s “principles-based” approach, the entire New Law contains only 60 articles, meaning that implementation rules and future circulars and other guidance will be key to its impact on specific taxpayers. The implementation rules (Rules) were officially issued on 11 December 2007. This piece of Tax Analysis addresses what is included in the Rules, as well as certain items that have been omitted.  To obtain our English translation of the new rules, please click here.
  
  
• PRC Tax - Enactment - Breaking News (Issue P07/2007)
  The Tenth National People's Congress enacted the new Enterprise Income Tax Law ("New Law") on 16 March 2007 that unifies the income tax treatment of domestic and foreign enterprises. This article covers the main content and its impact. To obtain our English translation of the new law, please click here.
  
  
• China enterprise tax reform series
  
  
  • LATEST  PRC Tax - Tax Incentive Developments (Issue M11/2008)
    Guidance in this Chinese post-tax reform period has been coming in fits and starts. While some of the developments have represented unexpectedly good news for many investors, many would have appreciated earlier announcement of these developments. This article summarises and comments on the latest developments since the release of the Implementation Rules.
    
    This newsletter is also available in Japanese.
        
    
    
    

  • PRC Tax - Unified income tax law and implementation rules open new chapter in transfer pricing legislation in China (Issue M10/2007)
    With the passing of the Unified Income Tax Law (New Law) and its Implementation Rules in 2007, 1 January 2008 will be the kick-off year for a new chapter in China’s transfer pricing history. This article summarises and comments on the published transfer pricing provisions of the New Law and Implementation Rules, as well as expected content of the detailed contemporaneous documentation rules.

         This newsletter is also available in Japanese.
  
  
  

  • PRC Tax - Effects on merger & acquisition deals (Issue M09/2007)
    The newly enacted Enterprise Income Tax Law brings with it a host of changes to the tax regime that affects foreign investors. Although the New Law will not become effective until 1 January 2008, in evaluating their M&A deals in China, foreign investors should already be considering and taking into account the following changes so that the necessary action can be taken before closing any deals. This issue provides our analysis in this area.
    
    This newsletter is also available in Japanese.
    
    
    
  • PRC Tax - Impact of new enterprise income tax law and new China-Hong Kong tax arrangement on financial institutions (Issue M08/2007)
    This article highlights various areas where FIs might be affected by the New Law and the SAT Circular, and what steps they could take to mitigate some of the risks.
    
    This newsletter is also available in Japanese.
    
    
    
  • PRC Tax - "Accounting" for China's tax reform - Effects on financial statement reporting (Issue M07/2007)
    This issue looks at the "accounting for income tax" issues arising from the new Unified Enterprise Income Tax Law that will have a significant impact on financial statement reporting.
    
    This newsletter is also available in Japanese.
    
    
    
  • PRC Tax - The new residence concept - Who should be concerned and, if you are, what should you do? (Issue M06/2007)
    The introduction of an "effective management" concept of corporate residence in China's new Unified Enterprise Income Tax Law will have a significant impact on the Chinese income tax liability of enterprises incorporated outside China. This issue provides our analysis in this area.
    
    This newsletter is also available in Japanese.
    
    
    
  • PRC Tax - Related party transactions: New law developments and related issues (Issue M05/2007)
    The Unified Enterprise Income Tax Law's primary objective is to create a level playing field and a fair fiscal environment that promotes competition and transparency for all enterprises operating in China. The New Law also has far reaching implications for transfer pricing regulations and practice in China. This issue provides our analysis in this area.
    
    This newsletter is also available in Japanese.
    
    
    
  • PRC Tax - Enactment - An initial analytical summary (Issue M04/2007)
    Last Friday, on 16 March 2007, the Tenth National People's Congress enacted the new Enterprise Income Tax Law, which unifies the income tax treatment of domestic and foreign enterprises. As expected, the new taxation system will take effect for the 2008 tax year with some provisions having immediate effect. This issue provides our initial analysis of certain major areas affected by the New Law.
    
    This newsletter is also available in Japanese.
    
    
    
  • PRC Tax - The direction of Chinese tax incentives... and planning for such incentives (Issue M03/2007)
    The new Unified Tax Law's most significant impact will be on strategic tax planning. Each enterprise must review its status within the law's framework for incentives. In this article, some more tax planning points are highlighted for you so that you can perform better planning.
    
    This newsletter is also available in Japanese.
    
    
    
  • PRC Tax - A time of change... and a time for action (Issue M02/2007)
    Planning for the new Unified Tax Law should start with a review of a company's business and activities. In this article, a number of tax planning points are highlighted to you to start planning for the new Unified Enterprise Income Tax Law.
    
    This newsletter is also available in Japanese.

Related tax news

• Draft law (revised) passed to National People's Congress for further review and approval (Issue P18/2007)
  In the second meeting of the Presidium of the 5th Session of the Standing Committee of the 10th National People's Congress (NPC) held on 12 March 2007,  the draft Enterprise Income Tax Law (revised) was voted upon favourably after the Presidium heard a report on the draft law given by Mr. Yang Jing Yu, the Chief of the NPC's Law Committee. The revised draft was then passed to the NPC for its further review and approval, and was sent for group discussion in the morning of 13 March. This article concludes the major amendments in the revised draft.
  
  
• Group discussion & review of draft of Enterprise Income Tax Law (Issue P17/2007)
  This issue updates the latest progress of the review of the draft of the Enterprise Income Tax Law.

• China's Finance Minister explains draft Enterprise Income Tax Law to the NPC (Issue P16/2007)
  On Thursday 8 March 2007, Mr Jin Ren Qing, China's Finance Minister, explained the draft Enterprise Income Tax Law to the participants of the 5th Session of the Standing Committee of the 10th National People's Congress. Key areas of the Minister's presentation are summarised in the attached article.