Traditional Culture Encyclopedia - Traditional stories - Foreign-funded enterprises should pay taxes both in the host country and in their own country. Isn't this double taxation?
Foreign-funded enterprises should pay taxes both in the host country and in their own country. Isn't this double taxation?
At present, most countries require foreign enterprises to pay taxes on the income obtained at home, so take the income obtained by China abroad as an example. Overseas branches have paid income tax in accordance with local tax laws, so when calculating in China, they will combine their domestic and overseas income and calculate the tax payable by enterprises in accordance with China tax law. In essence, it depends on how much income tax you should pay if you don't have a foreign branch. Then deduct the part that has been paid abroad, which means that the enterprise is required to make up the tax that should be paid according to China's tax law.
As for the problem of sometimes not getting the full credit, it is because the tax rate abroad is higher than that in China, so we don't overcharge, but we don't compensate.
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