What are the counting methods on corporate income with foreign exchange?
Pursuant to the Regulations on the Implementation of the Corporate Income Tax Law, an enterprise that pays income tax in advance shall convert the taxable foreign currencies to RMB at the mean RMB exchange rate in the last day of the month or the quarter for the purpose of calculating the taxable income. If the tax is levied on an annual basis, the unpaid corporate income tax liability shall be calculated in RMB after conversion of the taxable foreign currencies at the RMB exchange rate in the last day of the year. In payment of the tax balance or tax refund, the balance or refund shall be calculated in RMB after conversion of the corresponding foreign currencies at the mean RMB exchange rate in the day such payment or refund is officially confirmed.
