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 2020 was mainly in relation to income from our growing downstream businesses. There was a drop in demand and prices as a result of the COVID-19 pandemic in the first half of 2020 but recovery was strong in the second half of the year. The accumulated earnings represent retained profits of downstream businesses, mainly lubricants and retail.