Authored by: Yu Yue (Jessie)
Multinational enterprises may undertake cross-border restructurings for various commercial reasons. Under the Enterprise Income Tax Law of the PRC and its implementing regulations, resident enterprises are taxable on worldwide income, while non-resident enterprises are generally taxable only on income sourced in the PRC. Accordingly, a cross-border restructuring transaction may give rise to the PRC enterprise income tax (“EIT”).