Lecture 7 Summary - CFC & Foreign Tax Credit
第七讲摘要 - CFC 与外国税收抵免

This lecture addresses key aspects of taxing outbound investment by resident enterprises, focusing on Controlled Foreign Corporation (CFC) rules designed to prevent deferral of tax on foreign earnings, and the Foreign Tax Credit (FTC) mechanism used to alleviate double taxation.
本讲讨论了居民企业对外投资税收的关键方面，重点关注受控外国公司（CFC）规则，该规则旨在防止外国收入的税收递延，以及用于缓解双重征税的外国税收抵免（FTC）机制。

Introduction: Taxing Foreign Income of Resident Enterprises
导论：居民企业外国所得税收

• Worldwide Taxation Principle: Countries typically tax their resident enterprises on their worldwide income, including income earned abroad.
  全球税收原则：各国通常对其居民企业的全球收入征税，包括在国外赚取的收入。
• Deferral Problem: When foreign income is earned through a separate foreign subsidiary company, the residence country generally only taxes that income when it is repatriated to the parent company (e.g., as dividends). This creates an incentive for MNEs to defer repatriation and accumulate profits in subsidiaries located in low-tax jurisdictions, thereby delaying or avoiding home country tax ("deferral advantage").
  递延问题：当境外收入是通过单独的境外子公司赚取时，居住国通常只在该收入汇回母公司时（例如，作为股息）才对其征税。这使得跨国公司有动机推迟汇回并将利润积累在低税收管辖区的子公司中，从而延迟或避免本国税收（“递延优势”）。
• Anti-Deferral & Double Tax Relief: To counter this, many countries implement:
  反递延和双重征税救济：为了应对这种情况，许多国家实施：

1. CFC Rules: These rules attribute certain types of undistributed income earned by foreign subsidiaries directly to their domestic parent shareholders, eliminating the deferral benefit for that income.
   CFC 规则：这些规则将外国子公司赚取的某些类型的未分配收入直接归属于其国内母公司股东，从而消除了该收入的递延利益。
2. Foreign Tax Credit (FTC): This mechanism allows resident taxpayers to credit foreign taxes paid on foreign-source income against their domestic tax liability on that same income, preventing double taxation.
   外国税收抵免（FTC）：这种机制允许居民纳税人将就境外来源收入支付的外国税款抵免其对该相同收入的国内纳税义务，从而防止双重征税。

Controlled Foreign Corporation (CFC) Rules
受控外国公司（CFC）规则

• Purpose: To prevent resident taxpayers from avoiding or deferring domestic tax by shifting passive or highly mobile income to controlled subsidiaries established in low-tax jurisdictions. CFC rules represent a core component of international anti-avoidance measures, strengthened under BEPS Action 3.
  目的：防止居民纳税人通过将消极或高度流动的收入转移到在低税管辖区设立的受控子公司来避免或递延国内税款。受控外国公司规则是国际反避税措施的核心组成部分，并在 BEPS 行动计划 3 下得到加强。
• China's CFC Regime (EITL Article 45 & Implementation Rules):
  中国的受控外国公司制度（企业所得税法第 45 条及实施条例）：

• Scope: Applies when a foreign enterprise is controlled by Chinese resident enterprise(s) or individual(s) and is established in a jurisdiction with an effective tax rate significantly lower than China's standard 25% rate (originally defined as below 12.5%).
  范围：适用于外国企业由中国居民企业或个人控制，且设立在实际税率远低于中国标准 25%税率的管辖区（最初定义为低于 12.5%）的情况。
• Control Definition: Usually means direct or indirect ownership of >50% of voting shares or equity by PRC residents collectively. Can also apply with ≤50% shareholding if PRC residents have effective control over finances, operations, or personnel. Includes structures where a single PRC resident holds ≥10% and PRC residents collectively hold >50%.
  控制权定义：通常指中国居民集体直接或间接拥有>50%的投票权股份或股权。如果中国居民对财务、运营或人事有实际控制权，也可适用于≤50%的股权。包括单个中国居民持有≥10%股份且中国居民集体持有>50%股份的结构。
• Low-Tax Jurisdiction: Defined as having an effective income tax rate less than 50% of the PRC EIT rate (i.e., <12.5%). The State Administration of Taxation (SAT) later issued a "white list" of jurisdictions (including major economies like the US, UK, Japan, Germany, France, Australia, Canada, etc.) where CFC rules are generally presumed not to apply, provided the CFC's income is mainly derived from active business operations. CFC rules can still apply to entities in white-listed countries if their income is primarily passive investment income.
  低税管辖区：定义为实际所得税率低于中国企业所得税税率的 50%（即<12.5%）。国家税务总局（SAT）后来发布了一份辖区“白名单”（包括美国、英国、日本、德国、法国、澳大利亚、加拿大等主要经济体），其中通常推定 CFC 规则不适用，前提是 CFC 的收入主要来自积极的商业运营。如果白名单国家/地区的实体的收入主要为被动投资收入，则 CFC 规则仍然适用。
• Attribution Rule: If a CFC does not distribute profits, or distributes less than it should, and this retention is not due to reasonable operational needs, the portion of the profit attributable to the PRC resident shareholder(s) must be included in their taxable income for the current year.
  归属规则：如果 CFC 不分配利润，或分配的利润少于应分配的利润，且这种留存并非出于合理的运营需求，则归属于中国居民股东的利润部分必须计入其当年的应纳税所得额。
• Reasonable Operational Needs Exception: The core defence against CFC attribution. Retained profits are exempt if kept for genuine business needs like expanding operations, making significant investments, etc. Factors considered include the CFC's operational status, cash flow, future plans, and borrowing needs. There's no fixed quantitative test; the burden is on the taxpayer to justify the retention.
  合理运营需求例外：针对 CFC 归属的核心抗辩。如果保留利润是为了真正的商业需求，如扩大运营、进行重大投资等，则可免除。考虑的因素包括 CFC 的运营状况、现金流、未来计划和借款需求。没有固定的量化测试；举证责任在于纳税人，以证明其保留的合理性。
• Active Business Income Exemption: The focus of CFC rules is typically on passive income (dividends, interest, royalties, rents, certain capital gains). Profits derived mainly from active business operations (e.g., manufacturing, sales of goods, provision of services) are generally excluded from the scope of CFC attribution.
  积极经营收入豁免：受控外国公司规则的重点通常是被动收入（股息、利息、特许权使用费、租金、某些资本收益）。主要来源于积极经营活动（例如，制造、商品销售、提供服务）的利润通常不在受控外国公司归属的范围内。
• De Minimis Threshold: CFC rules may not apply if the CFC's annual profit falls below RMB 5 million.
  最小数额限制：如果受控外国公司的年度利润低于人民币 500 万元，则可能不适用受控外国公司规则。
• Calculation of Attributed Income: Attributed Income = CFC's Current Year Profit × Shareholder's Holding Percentage (Direct & Indirect).
  归属收入的计算：归属收入=受控外国公司当期利润×股东持股比例（直接和间接）。
• Tax Credits & Subsequent Distributions: Foreign taxes paid by the CFC on the attributed income can be credited (see FTC section below). When the attributed profits are actually distributed in later years, they are not taxed again in the hands of the PRC shareholder.
  税收抵免和后续分配：受控外国公司就归属收入缴纳的外国税款可以抵免（参见下文的 FTC 部分）。当归属利润在以后年度实际分配时，中国居民股东无需再次纳税。

• Suzhou Case Study: A PRC ParentCo wholly owned a Hong Kong subsidiary (HK SubCo). HK SubCo earned significant profits from investments and equity transfers (passive income) but did not distribute them. The tax authority investigated and determined:
  苏州案例：一家中国母公司全资拥有一家香港子公司（香港子公司）。香港子公司从投资和股权转让中获得巨额利润（被动收入），但并未分配这些利润。税务机关进行了调查，并认定：

• HK SubCo was a CFC (controlled by PRC residents, HK standard tax rate <12.5% threshold).
  香港子公司是一家受控外国公司（由中国居民控制，香港标准税率 <12.5% 的门槛）。
• Profits were not retained for reasonable operational needs (passive investment nature).
  利润并非因合理的运营需求而保留（被动投资性质）。
• The undistributed profits were attributed to ParentCo and subjected to PRC EIT.
  未分配利润归属于母公司，并需缴纳中国企业所得税。
• ParentCo could potentially claim credit for HK taxes paid by HK SubCo (though in this case, HK SubCo paid no tax as gains were sourced offshore). This case illustrates the focus on substance, passive income, and the justification required for retaining profits offshore.
  ParentCo 可能会就香港 SubCo 缴纳的香港税款申请抵免（尽管在本例中，由于收益来源于境外，香港 SubCo 未缴纳任何税款）。本案例说明了对实质重于形式、被动收入的关注，以及境外留存利润所需的理由。

Foreign Tax Credit (FTC) Mechanism
外国税收抵免 (FTC) 机制

• Purpose: To mitigate international double taxation that arises when both the source country and the residence country tax the same income. Under the OECD MTC, relief is typically provided via the Exemption Method (Art 23A) or the Credit Method (Art 23B). China uses the Credit Method.
  目的： 减轻因来源国和居民国对同一收入征税而产生的国际双重征税。根据 OECD MTC，通常通过免税法（第 23A 条）或抵免法（第 23B 条）提供减免。中国采用抵免法。
• China's FTC Regime (EITL Articles 23, 24 & Implementation Rules):
  中国的外国税收抵免制度（企业所得税法第 23、24 条及实施条例）：

• Eligibility: Available to PRC resident enterprises earning foreign-source income subject to foreign income tax.
  资格：适用于就境外所得缴纳境外所得税的中国居民企业。
• Types of Credit:  抵免类型：

1. Direct Credit: Credit for foreign income tax paid directly by the PRC resident enterprise on its foreign income (e.g., tax on foreign branch profits, withholding tax suffered on dividends, interest, royalties received from abroad).
   直接抵免：中国居民企业就其境外所得直接缴纳的境外所得税的抵免（例如，境外分支机构利润的税款、从境外收到的股息、利息、特许权使用费所遭受的预提税）。
2. Indirect Credit: Credit for foreign income tax deemed paid by the PRC resident enterprise. This primarily relates to the underlying foreign corporate income tax paid by foreign subsidiaries on the profits out of which dividends are distributed to the PRC parent.
   间接抵免：中国居民企业视同已缴纳的境外所得税的抵免。 这主要涉及外国子公司就向中国母公司分配股息的利润所缴纳的潜在外国企业所得税。

• Indirect Credit Qualification & Tiers: To claim indirect credit for taxes paid by a foreign subsidiary, the PRC resident parent must meet minimum ownership thresholds, directly or indirectly through a chain of subsidiaries.
  间接抵免资格和层级：要申请对外国子公司缴纳的税款进行间接抵免，中国居民企业母公司必须满足最低所有权门槛，直接或间接通过一系列子公司持有。

1. Ownership Threshold: Requires ≥ 20% shareholding (voting rights or equity) at each level.
   所有权门槛：要求在每个层级持有≥20%的股份（投票权或股权）。
2. Tier Limit: The credit extends down to taxes paid by subsidiaries up to five tiers below the PRC parent (previously limited to three tiers). The ownership threshold must be met consistently down the chain. The diagrams in the slides illustrate qualifying chains based on cumulative ownership percentages.
   层级限制：抵免范围扩大到中国母公司以下最多五个层级的子公司缴纳的税款（之前限制为三个层级）。所有权门槛必须在整个链条中始终满足。幻灯片中的图表说明了基于累计所有权百分比的合格链条。

• Calculation of Indirect Credit: Indirect Credit = (Dividend Amount / (Subsidiary's Profit After Tax)) × Subsidiary's Foreign Income Tax Paid. This formula applies tier-by-tier upwards.
  间接抵免的计算：间接抵免=（股息金额/（子公司税后利润））×子公司已付外国所得税。此公式逐层向上适用。
• FTC Limitation (Per-Country Limitation): The total FTC claimed for taxes paid to a specific foreign country cannot exceed the amount of PRC EIT payable on the income sourced from that same country. This prevents high foreign taxes from offsetting PRC tax on domestic income or income from other lower-tax countries.
  FTC 限额（分国别限额）：就特定外国已付税款申报的外国税收抵免总额不得超过就来源于该同一国家/地区的收入应缴纳的中国企业所得税金额。这可防止高额外国税款抵消国内收入或来自其他低税国家/地区的收入所对应的中国税款。

1. Formula: Credit Limit (per country) = Total PRC EIT Payable on Worldwide Income × (Taxable Income from Foreign Country / Total Worldwide Taxable Income).
   公式：抵免限额（分国别）= 全球应纳税所得额应纳中国企业所得税 ×（来自外国的应纳税所得额/全球应纳税所得总额）。

• Calculation Steps:  计算步骤：

1. Determine taxable income from each foreign country.
   确定来自每个外国的应纳税所得额。
2. Calculate the per-country credit limit using the formula.
   使用公式计算每个国家/地区的抵免限额。
3. Determine the creditable foreign taxes paid (direct + eligible indirect).
   确定已缴纳的可抵免外国税款（直接税 + 符合条件的间接税）。
4. The allowed credit for each country is the lesser of the foreign tax paid and the per-country limit.
   每个国家/地区允许的抵免额为已缴纳的外国税款和每个国家/地区的限额两者中的较小者。

• Carryforward: Any foreign tax paid in excess of the per-country limit for a given year can be carried forward and credited against PRC tax in the subsequent five years, subject to the limit in those years.
  结转：对于特定年份，任何已缴纳的超过每个国家/地区限额的外国税款，均可结转并在随后的五年内用于抵免中国税款，但须遵守这些年份的限额。
• Documentation: Taxpayers must provide certificates or proof of foreign tax payment from foreign tax authorities to substantiate their FTC claims.
  文件记录：纳税人必须提供外国税务机关出具的外国税收缴纳证明或凭证，以证实其外国税收抵免 (FTC) 申报。

In summary, Lecture 7 outlines China's approach to taxing outbound investments, combining anti-deferral CFC rules to tax certain passive offshore income currently, with a foreign tax credit system (direct and multi-tiered indirect credits subject to per-country limits) to relieve resulting international double taxation.
总之，第 7 讲概述了中国对境外投资的征税方法，结合反递延的 CFC 规则对某些被动境外收入进行现期征税，并采用外国税收抵免制度（直接和多层间接抵免，但须遵守国别限额）来缓解由此产生的国际重复征税。