What is Double Taxation?

International double taxation means that if one or different taxation entities levy two or more taxes on one or different taxation objects or tax sources simultaneously.

Double taxation

, According to international conventions. Its main contents include:

The income of the taxpayer from outside China is allowed to be deducted from the taxable amount. However, the deduction amount shall not exceed the taxable amount of the taxpayer's overseas income calculated in accordance with Chinese tax laws.

The corporate income tax actually paid by taxpayers derived from overseas income outside the country may be deducted from the taxable amount if it is lower than the deduction limit calculated in accordance with Chinese tax laws; if the deduction limit is exceeded, the taxable amount in the current year may not be deducted Deduction, but can be deducted from the balance of tax deductions in subsequent years, the maximum deduction period can not exceed 5 years.

(3) The deduction of tax paid by taxpayers abroad is generally based on the method of deducting the tax paid abroad regardless of country. The deduction amount is: the taxable amount of domestic and overseas income calculated in accordance with Chinese tax law ×? Income from a country (region) ÷ total domestic and overseas income ?. For some domestic-funded enterprises that cannot fully provide overseas tax payment certificates, with the approval of the competent tax authority, they can also adopt the method of fixed rate deduction, which does not distinguish between tax-exempt or non-tax-exempt items, and uniformly calculates at a rate of 16.5% of taxable overseas income Tax credits.