The VAT rate of training institutions is 6%. The corporate income tax rate is 25%. A resident enterprise shall pay enterprise income tax on its income from sources inside and outside China. Taxable income is the total income of an enterprise in each tax year, after deducting non-taxable income, tax-free income, various deductions and losses allowed to make up in previous years.

Legal objectivity:

Article 3 of the Enterprise Income Tax Law

A resident enterprise shall pay enterprise income tax on its income from sources inside and outside China.

Where a non-resident enterprise establishes an institution or place in China, it shall pay enterprise income tax on the income obtained by its institution or place from China and the income generated outside China but actually related to its institution or place.

Article 4

The corporate income tax rate is 25%.

The tax rate applicable to non-resident enterprises obtaining the income specified in the third paragraph of Article 3 of this Law is 20%.

Article 5

Taxable income is the total income of an enterprise in each tax year, after deducting non-taxable income, tax-free income, various deductions and losses allowed to make up in previous years.