PROFIT BEFORE TAX
Main Business Activities
- Upstream and Integrated Gas
- Trading and Supply
- Other support activities
Shell has been present in China for more than a century where it now has upstream, integrated gas, downstream and projects and technology activities. Downstream businesses in China, in particular retail, are highly regulated but as part of China’s “open door” policy in recent years the market is starting to open up. Our China Downstream business has experienced strong growth over the past 10 years.
Country Financial Analysis
The statutory corporate income tax rate in China is 25% for both upstream and downstream businesses.
Our corporate income tax in 2019 was mainly in relation to income from our Downstream businesses. The accumulated earnings represent retained profits of Shell China Downstream businesses, mainly lubricants and retail. The significant change in the stated capital and accumulated earnings figures for China is due to the removal of the reporting entity Shell China Exploration and Production Company Limited (SCEPCO) from China to the Netherlands. SCEPCO was a UK-registered company but its residence was changed to the Netherlands in 2019, accordingly accumulated earnings and stated capital are disclosed in the Netherlands.