Chapter 1 General Provisions Article 1 These detailed rules are formulated in accordance with the provisions of Article 29 of the "Income Tax Law of the People's Republic of China on Foreign-Invested Enterprises and Foreign Enterprises" (hereinafter referred to as the Tax Law). Article 2 The income from production and business operations mentioned in Paragraph 1 and Paragraph 2 of Article 1 of the Tax Law refers to those engaged in manufacturing, mining, transportation, construction and installation, agriculture, forestry, animal husbandry, fishery, and water conservancy. , commerce, finance, services, exploration and development operations, and income from production and operations in other industries. The other income mentioned in Paragraph 1 and Paragraph 2 of Article 1 of the Tax Law refers to profits (dividends), interest, rent, income from transfer of property, provision or transfer of patent rights, know-how, trademark rights, copyright income and non-business income. Income, etc. Article 3 Foreign-invested enterprises mentioned in Paragraph 1 of Article 2 of the Tax Law and foreign companies, enterprises and other business organizations that establish institutions and sites in China to engage in production and business operations as mentioned in Paragraph 2 of Article 2 of the Tax Law shall not In these rules, unless otherwise specified, they are collectively referred to as enterprises. The institutions and places mentioned in Paragraph 2 of Article 2 of the Tax Law refer to management institutions, business institutions, offices and factories, places where natural resources are exploited, places where construction, installation, assembly, exploration and other engineering operations are contracted, and where labor services are provided. premises and business agents. Article 4 The business agent mentioned in paragraph 2 of Article 3 of these Rules refers to any of the following companies, enterprises and other business organizations or individuals that are entrusted by foreign enterprises to engage in business:

(1) Frequently engage in purchasing business on behalf of the client, sign purchase contracts, and purchase goods on behalf of the client;

(2) Sign agency agreements or contracts with the client, and frequently store products or goods belonging to the client , and deliver their products or commodities to others on behalf of the principal;

(3) Have the right to sign sales contracts or accept orders on behalf of the principal from time to time. Article 5: The head office mentioned in Article 3 of the Tax Law refers to a foreign-invested enterprise that is a corporate legal person in accordance with Chinese law and the central institution established within the territory of China to be responsible for the operation, management and control of the enterprise. The production, operating income and other income of foreign-invested enterprises in China or overseas branches shall be consolidated and paid income tax by the head office. Article 6 The income derived from China as mentioned in Article 3 of the Tax Law refers to:

(1) Income from foreign-invested enterprises and foreign enterprises that establish institutions and places in China and engage in production and business operations, As well as profits (dividends), interest, rents, royalties and other income occurring in China or abroad that are actually related to foreign-invested enterprises and institutions and places established by foreign enterprises in China.

(2) The following income obtained by foreign enterprises that have not established institutions or places in China: 1. Profits (dividends) obtained from enterprises in China; 2. Deposit or loan interest, bond interest, advance payment or deferred payment interest obtained from within China; 3. Rent obtained from leasing property to lessees in China; 4. Royalties obtained from providing patent rights, know-how, trademark rights, copyrights, etc. for use in China; 5. Gains obtained from the transfer of houses, buildings and ancillary facilities, land use rights and other properties within China; 6. Other income derived from China that is taxable as determined by the Ministry of Finance. Article 7 For Sino-foreign joint ventures that do not form corporate legal persons, the parties to the cooperation may calculate and pay income tax separately in accordance with the relevant national tax laws and regulations, or the enterprise may apply and, with the approval of the local tax authorities, calculate and pay income tax uniformly in accordance with tax laws. Article 8 The tax year mentioned in Article 4 of the Tax Law begins on January 1 and ends on December 31 of the Gregorian calendar. If a foreign enterprise has difficulty in calculating its taxable income in accordance with the tax year stipulated in the tax law, it may submit an application and submit it to the local tax authority for approval, and the tax year shall be the accounting year of the enterprise that lasts for twelve months. If an enterprise opens business in the middle of a tax year, or if the actual operating period of the tax year is less than twelve months due to cooperation, closure, etc., the actual operating period shall be regarded as one tax year. When an enterprise is liquidated, the liquidation period shall be regarded as a tax year.

Article 9 Paragraph 3 of Article 8 and Paragraph 3 of Article 19 of the Tax Law tax office. Chapter 2 Calculation of Taxable Income Article 10 The calculation formula of taxable income mentioned in Article 4 of the Tax Law is as follows:

(1) Manufacturing industry: 1. Taxable income = product sales profits + other business profits + non-operating income – non-operating expenses 2. Product sales profit = net product sales – product sales cost – product sales tax – (sales expenses + administrative expenses + financial expenses) 3. Net product sales = total product sales – (sales returns + sales discounts) 4. Product sales cost = product cost for the current period + product inventory at the beginning of the period – product inventory at the end of the period 5. Product cost for the current period = Production cost for the current period + Inventory of semi-finished products and work in progress at the beginning of the period – Inventory of semi-finished products and work in progress at the end of the period 6. Production cost of the current period = direct materials consumed in the production of the current period + direct wages + manufacturing expenses

(2) Business: 1. Taxable income = sales profit + other business profits + non-operating income – non-operating expenses 2. Profit from sales = net sales – cost of goods sold – sales tax – (sales expenses + administrative expenses + financial expenses) 3. Net sales = total sales – (sales return + sales discount) 4. Cost of goods sold = Beginning merchandise inventory + [Purchases in the current period - (Purchasing exit + Purchase discount) + Purchase expenses] - Ending merchandise inventory

(3) Service industry: 1. Taxable income = net business income + non-operating income – non-operating expenses 2. Net business income = total business income – (business income taxes + business expenses + administrative expenses + financial expenses)

(4) Other industries: Calculated according to the above formula.

Legal basis:

"Detailed Implementation Rules for Foreign Debt Registration of the State Administration of Foreign Exchange"

Article 3 The State Administration of Foreign Exchange and its branches shall register and manage foreign debt nationwide. department (hereinafter referred to as the registration department). The State Administration of Foreign Exchange is responsible for the foreign debt registration work of the ministries, commissions, companies of the State Council, and the headquarters of banks and non-bank financial institutions in Beijing; the local foreign exchange administration branches are responsible for local governments, financial institutions, enterprises and institutions, as well as the central government’s local units, and the headquarters of financial institutions. foreign debt registration work.

For external borrowings of overseas offices that are not registered overseas, the foreign exchange administration bureau in the place where the overseas office is located is responsible for registration.

Article 4 Foreign debt registration is divided into transaction-by-transaction registration and periodic registration.

Regularly registered foreign debt refers to: foreign debt borrowed by domestic banks and non-bank financial institutions; foreign government loans and loans from international financial organizations that are respectively responsible for the Ministry of Finance, the Ministry of Economy and Trade, the People's Bank of China, the Ministry of Agriculture, and the Bank of China. .

The foreign debts registered one by one refer to the foreign debts borrowed by other domestic departments and enterprises (including foreign-invested enterprises) other than those registered on a regular basis.

For external borrowings entrusted by financial institutions by enterprises and institutions, registration shall be handled by the debtor specified in the loan contract.