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CIT · 01 Editorial guide

Permanent Establishment and Corporate Income Tax in China

CIT is a corporate tax file. VAT invoices and IIT payroll are adjacent, not the same return.

First job Identify the taxpayer entity and whether CIT is the question before mixing in VAT or IIT.

Start here

Decision railwho is the taxpayer → PE or entity → income characterisation → return → TP overlay
See routing facts

Start here

Key considerations

The first questions are about urgency, governance and preservation — before collection expands or interviews begin.

  1. Which China entity is the taxpayer?
  2. Is the question profit tax, not VAT or withholding?
  3. Are related-party flows material?

Direct answer

What this page decides

Owner
02

This page owns CIT for a China enterprise and TAX01 PE for a foreign company: which person is the taxpayer, whether a taxable presence exists, and that CIT is not VAT or payroll. Treaty PE and domestic PE can differ. Service, agency and construction facts are common forks. Do not invent PE day-counts or CIT rates here — confirm current CIT Law, treaty text and STA guidance. Attribution of profit is a documentation problem, not a slogan.

At a glance

Which fact changes the next route

Use the fact that changes ownership or urgency to decide the next move.

Facts that change the next investigation route
QuestionWhy it mattersNext route
PRC company already exists?CIT on the enterprise, not a PE debate.Entity, scope, return.
People or a site in China without a WFOE?PE risk.Facts vs treaty/domestic tests.
Related-party charges?TP.Transfer pricing L4.
Need fapiao?VAT.VAT & fapiao L4.

Scope

What this page owns — and what it does not

Owns enterprise CIT + TAX01 PE.
ExclusionsWHT on outbound payments (Repatriation L4); IIT residence.

Practical workflow

Action, evidence, legal gate, output

Practical workflow
ActionDocuments / evidenceLegal gateOutput
Name the taxpayerLicence vs foreign co + people/siteEntity vs PE forkTaxpayer memo
If no entity: PE screenPlace, people, agency, projectsCurrent treaty/domestic textPE hypothesis
Characterise incomeContracts, people, IPCIT vs WHT vs VATCharacter list
File the corporate pathReturn, booksFilings L4 for clocksCIT file

Documents

What to gather before the next call

These items help clarify the file; they are not a legal requirement list.

Documents to gather before instructing counsel
ItemWhy neededWho holds itRisk if missing
Contracts and secondment lettersPE factsLegal/HRHidden agency PE
Books and tax filingsCITFinanceVAT mixed into CIT

Common failure points

Where files usually break

  1. Calling a representative office ‘not PE’ without facts.

  2. Using a treaty article number from memory.

FAQ

Narrow follow-ups owned by this page

Is a warehouse a PE?

Fact-specific under the applicable treaty and domestic rules. This page will not freeze an answer.

Where is dividend WHT?

Repatriation & exit L4. Banking/FX owns the payment rail.

Decision map

Keep the question bounded.

  1. Name the taxpayerThe China company or PE in view.
  2. Keep VAT outFapiao questions belong on the VAT route.
  3. Hand off TPRelated-party pricing is its own topic.

Quick answers

Need the short version? Start with one narrow question.

These explainers answer one question. They do not replace this topic route or a deep guide.

Quick AnswerChina Corporate Income Tax — Rates & Key RulesAn orientation to China corporate income tax, including the standard framework, preferential treatment, deductions, filing and cross-border withholding. Confirm current eligibility and treatment against the company’s facts.Quick AnswerChina Stamp DutyStamp duty applies to listed taxable documents at schedule rates — contracts often trigger it. Reviewed 6 Sep 2026.Quick AnswerPermanent Establishment in ChinaA PE can pull business profits into China CIT even without a WFOE. Agency, site and service PEs are common traps. Reviewed 6 Sep 2026.

Curated resources

Open the asset that matches this job.

01
Guide

China tax decision and compliance guide

National CIT, VAT, IIT, residence, transfer pricing and exit-clearance desk.

02
Guide

China corporate income tax rates and key rules

CIT as a corporate file, distinct from VAT and payroll.

03
Guide

Prepare a tax enquiry

Organise high-level, non-confidential tax facts before counsel or Ask a Lawyer.

Helpful to prepare

Facts that make the next conversation clearer.

These items are orientation aids, not a legal requirement list.

Entity name and tax registration statusPeriod in questionWhether related-party dealings exist

Counsel hand-off

What to bring when you instruct

Instruct tax counsel. Bring: people on the ground, contracts, and whether a PRC entity already files.

Local context

Add the city when bureau practice changes.

Filing portals, fapiao practice and clearance queues vary after the national tax question is identified.

Open city and province guides

Counsel hand-off

Need tax counsel?

This hub organises tax files and clocks. It does not compute tax, grant clearance or file a return on your facts.

Find tax counsel

Submit an initial enquiry

Need qualified counsel?

Move carefully. Move with a record.

Use the portal to identify counsel for this practice and related China-side issues.

Find tax counselSubmit an initial enquiry