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424B4
IQIYI, INC. filed this Form 424B4 on 03/29/2018
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Table of Contents

iQIYI, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2015, 2016 AND 2017—continued

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares (or ADS) and per share (or ADS) data)

 

The other PRC subsidiaries and consolidated VIEs and VIE’s subsidiaries are subject to the 25% EIT rate.

According to the current EIT Law and its implementation rules, foreign enterprises, which have no establishment or place in China but derive dividends, interest, rents, royalties and other income (including capital gains) from sources in China or which has an establishment or place in China but the aforementioned incomes are not connected with the establishment or place shall be subject to PRC withholding tax (“WHT”) at 10% (a further reduced WHT rate may be available according to the applicable double tax treaty or arrangement provided that the foreign enterprise is the tax resident of the jurisdiction where it is located and it is the beneficial owner of the dividends, interest and royalties income).

Also, the current EIT Law treats enterprises established outside of China with “effective management and control” located in China as PRC resident enterprises for tax purposes. The term “effective management and control” is generally defined as exercising overall management and control over the business, personnel, accounting, properties, etc. of an enterprise. The Company, if considered a PRC resident enterprise for tax purposes, would be subject to the PRC EIT at the rate of 25% on its worldwide income. As of December 31, 2017, the Group has not accrued for PRC tax on such basis. The Group will continue to monitor its tax status.

The Group’s loss before income taxes consists of:

 

     For the year ended December 31,  
     2015      2016      2017      2017  
     RMB      RMB     

RMB

     US$  

Non-PRC

     19,976        (23,273      99,787        15,337  

PRC

     (2,583,922      (3,037,661      (3,844,284      (590,857
  

 

 

    

 

 

    

 

 

    

 

 

 
     (2,563,946      (3,060,934      (3,744,497      (575,520
  

 

 

    

 

 

    

 

 

    

 

 

 

Income tax expense/(benefit) for the years ended December 31, 2015, 2016 and 2017 consists of:

 

     For the year ended December 31,  
     2015      2016      2017      2017  
     RMB      RMB      RMB      US$  

Current income tax expense

     5,965        12,610        4,649        714  

Deferred income tax expense/(benefit)

     5,201        478        (12,214      (1,877
  

 

 

    

 

 

    

 

 

    

 

 

 
     11,166        13,088        (7,565      (1,163
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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