EIT Law definition
Examples of EIT Law in a sentence
If the entity is a non-PRC tax resident enterprise without permanent establishment in the PRC, the PRC- sourced income (including cash dividends, distributions, interest and capital gains) derived by it from any investment in PRC securities would be subject to PRC withholding income tax (“WHT”) at the rate of 10% unless exempt or reduced under the PRC EIT Law or a relevant tax treaty.
Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, including the risk factor set forth in “Risk Factors— Under the EIT Law, we may be classified as a PRC “resident enterprise” for PRC enterprise income tax purposes.
Except as disclosed in the Disclosure Materials, Registration Statement and Prospectus, including but not limited to the risk factor set forth in “Risk Factors— Risks Related to Doing Business in China - Under the EIT Law, we and/or S▇▇▇▇▇ HK may be classified as a ‘‘resident enterprise’’ of the PRC.
The EIT Law and its implementation rules are relatively new and ambiguities exist with respect to the interpretation of the provisions relating to resident enterprise issues.
The principal regulations governing the distribution of dividends paid by wholly foreign-owned enterprises include the: • Company Law (2005) • Wholly Foreign-Owned Enterprise Law (1986), as amended in 2000; • Wholly Foreign-Owned Enterprise Law Implementation Regulations (1990), as amended in 2001; and • Enterprise Income Tax Law (2007), or the EIT Law, and its Implementation Regulations (2007).
Under the EIT Law, which took effect on January 1, 2008, enterprises established outside of China whose "de facto management bodies" are located in the PRC are considered "resident enterprises," and thus will generally be subject to the enterprise income tax at the rate of 25% on their global income.
Under the EIT Law, enterprises established under the laws of foreign countries or regions and whose "de facto management bodies" are located within PRC territory may be deemed by the PRC tax authorities as PRC tax resident enterprises, and will be subject to PRC enterprise income tax at the rate of 25% on their worldwide income.
Under the detailed implementation rules of the EIT Law, "de facto management bodies" are defined as bodies that have material and overall management and control over the business, personnel, accounts and assets of an enterprise.
Under the PRC EIT Law and the implementation regulations thereunder, PRC withholding tax at a rate of 10 per cent.
The EIT Law applies a uniform 25% enterprise income tax rate to both foreign-invested enterprises and domestic enterprises.