Core Viewpoint - The article outlines the conditions under which equity investment income, such as dividends and bonuses, can be exempt from corporate income tax for resident enterprises in China, detailing specific investment scenarios and relevant policies. Group 1: Tax Exemption Conditions - Resident enterprises can enjoy tax exemption on dividends and bonuses from direct investments in other resident enterprises, provided they hold the shares for more than 12 months [1]. - For investments through the Shanghai-Hong Kong Stock Connect, dividends from H-shares held for over 12 months are exempt from tax since November 17, 2014 [1]. - Similarly, for investments through the Shenzhen-Hong Kong Stock Connect, dividends from H-shares held for over 12 months are exempt from tax since December 5, 2016 [1]. - Income from holding CDRs (Chinese Depositary Receipts) of innovative enterprises is also exempt if it meets the holding period requirements [1]. Group 2: Income Recognition Timing - The income from equity investments is recognized on the date when the profit distribution or stock conversion decision is made by the invested enterprise's shareholders' meeting [2]. - Only equity investments qualify for tax exemption; interest income from general bonds does not meet this criterion [2]. - Indirect investments through intermediaries do not qualify for tax exemption; only direct investments in other resident enterprises are eligible [2]. Group 3: Special Cases - Non-resident enterprises can also enjoy tax exemption on dividends from resident enterprises if they have a physical presence in China and the income is related to that presence [2]. - If an enterprise withdraws or reduces its investment, the corresponding portion of undistributed profits may be treated as dividend income and could be exempt if it meets the conditions [3]. - In cases of liquidation or asset restructuring, the income received that corresponds to the accumulated undistributed profits may also qualify for tax exemption if conditions are met [3]. Group 4: Common Questions - Dividends received from partnerships or sole proprietorships do not qualify for tax exemption as these entities are not subject to the Corporate Income Tax Law [4]. - There is no need for separate filing for tax exemption; enterprises should self-assess their eligibility during tax declaration and retain relevant documentation for verification [4]. - The holding period for CDRs is calculated from the date of acquisition to the profit distribution decision date; a continuous holding of over 12 months is required for tax exemption [4].

Core Viewpoint - The article discusses various tax incentives available for enterprises in China, particularly focusing on corporate income tax exemptions and deductions for specific activities and investments [3][5][7]. Group 1: Tax Incentives for Corporate Investments - Resident enterprises are exempt from corporate income tax on equity investment income such as dividends and bonuses from other resident enterprises, provided certain conditions are met [3]. - The exemption does not apply to investment income from publicly traded stocks held for less than 12 months [3]. Group 2: Documentation Requirements for Tax Benefits - Key documentation required for claiming tax benefits includes the latest articles of association of the invested enterprise, profit distribution resolutions, and tax declaration forms [4][6]. - For investments in disabled employees, documentation must include proof of social insurance payments and labor contracts with disabled workers [8]. Group 3: Tax Exemptions for Agricultural Activities - Enterprises engaged in various agricultural activities, including the cultivation of vegetables, grains, and livestock, are exempt from corporate income tax [7]. - Enterprises involved in specific agricultural projects may benefit from reduced tax rates under certain operational models [7].