Core Viewpoint - The article discusses the tax exemption policy for investment income between resident enterprises in China, specifically focusing on the conditions under which such income is exempt from corporate income tax [2][12]. Group 1: Tax Exemption Policy - According to the Corporate Income Tax Law of the People's Republic of China, qualified investment income such as dividends and bonuses between resident enterprises is exempt from corporate income tax [2]. - The implementation regulations specify that investment income is recognized based on the date the profit distribution decision is made by the invested enterprise [2]. Group 2: Example of Investment Income - An example illustrates that if Company A invests 50% in Company B, and Company B realizes a profit of 10 million yuan in 2023 but does not distribute it, Company A does not need to report any income for that year [5]. - When Company B distributes the 10 million yuan profit in 2024, Company A will recognize 5 million yuan as investment income, which is exempt from corporate income tax [5][7]. Group 3: Reporting Requirements - During the prepayment period, Company A must select "exempt investment income" on the tax declaration form when reporting the 5 million yuan [7]. - In the annual tax declaration for 2024, Company A will report the 5 million yuan as exempt income, ensuring compliance with tax regulations [10][11]. Group 4: Non-Exempt Investment Income - The article clarifies that investment income from publicly traded stocks held for less than 12 months does not qualify for tax exemption, as illustrated by another example where Company A's investment in Company B's publicly traded stock results in a taxable income of 4 million yuan [13][14]. - The tax implications for such investments require proper reporting and payment of corporate income tax [13][14]. Group 5: Partnership Income Taxation - The article also discusses the taxation of income from partnerships, stating that partners are responsible for paying corporate income tax based on their share of the partnership's income [17]. - An example shows that if a company invests in a partnership and the partnership earns 10 million yuan, the company must report its share of the income for tax purposes [21].