No. There is a cap for deduction of entertainment expenses in line with the revenue of the Company.
Interest expenses can be deducted when they are not more than the normal commercial lending rates and relate to normal production and business operations of FIEs. Interests relating to purchase or construction of fixed assets or the transfer or development of intangible properties should be included in the original value of the assets followed by […]
a) Costs of fixed assets (except property purchased or constructed for sales purposes) b) Purchase or development costs of intangible assets c) Interest on capital d) Income tax and local tax payments (except deductible tax payments such as Business Tax or Land Value Appreciation Tax) e) Fines for illegal activities and losses arising from the confiscation of property f) Late […]
Taxable income represents total of various production and other incomes deducting all deductible costs and expenses.
New Corporate Income Tax law regulates that the standard corporate income tax rate is 25%, which is applicable to both local enterprises and foreign invested enterprises. The rate for high-tech enterprises is 15%, for small thin-profit enterprises it is 20%, and for non-resident enterprises it is 20%.
