Legal basis: Enterprise Income Tax Law of People's Republic of China (PRC).
Article 3 A resident enterprise shall pay enterprise income tax on its income from sources inside and outside China.
Where a non-resident enterprise establishes an institution or place in China, it shall pay enterprise income tax on the income obtained by its institution or place from China and the income generated outside China but actually related to its institution or place.
If a non-resident enterprise has no institution or place in China, or if it has an institution or place, but its income has no actual connection with its institution or place, it shall pay enterprise income tax on its income originating in China.
Article 4 The enterprise income tax rate is 25%.
The tax rate applicable to non-resident enterprises obtaining the income specified in the third paragraph of Article 3 of this Law is 20%.