Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes

Income (loss) before income taxes consists of:

	For the years ended December 31,
	2020		2021			2022			2022
	RMB		RMB			RMB			US$
	(In millions)
Mainland China		19,711		15,055			18,306			2,654
Non-Mainland China		3,379		(4,277	)		(8,194	)		(1,188	)
		23,090		10,778			10,112			1,466

Components of Income Tax

Income taxes consist of:

	For the years ended December 31,
	2020			2021			2022			2022
	RMB			RMB			RMB			US$
	(In millions)
Current income tax		4,668			3,636			3,163			459
Income tax refund due to reduced tax rate		(719	)		—			(468	)		(68	)
Adjustments of deferred tax assets due to change in tax rates		(5	)		109			119			17
Deferred income tax expense (benefit)		120			(558	)		(236	)		(34	)
		4,064			3,187			2,578			374

Reconciliation of Effective Income Tax Provision of Tax Computed By Applying Statutory Income Tax Rate to Pre-Tax Income

The reconciliation of the actual income taxes to the amount of tax computed by applying the aforementioned statutory income tax rate to pre-tax income is as follows:

	For the years ended December 31,
	2020			2021			2022			2022
	RMB			RMB			RMB			US$
	(In millions, except for per share data)
Expected taxation at PRC statutory tax rate		5,773			2,694			2,541			368
Effect of differing tax rates in different jurisdictions		208			656			1,976			286
Non-taxable income		(995	)		(89	)		(44	)		(6	)
Non-deductible expenses		3,416			965			534			77
Research and development super-deduction		(1,549	)		(1,645	)		(2,274	)		(330	)
Effect of PRC preferential tax rates and tax holiday		(2,891	)		(1,557	)		(1,507	)		(217	)
Effect of tax rate changes on deferred taxes		(5	)		109			119			17
Reversal of prior year’s income taxes		(951	)		(734	)		(913	)		(132	)
PRC withholding tax		122			615			181			26
Valuation allowance		936			2,173			1,965			285
Taxation for the year		4,064			3,187			2,578			374
Effective tax rate		18%			29.6%			25.5	%		25.5	%
Effect of preferential tax rates inside the PRC on basic earnings per Class A and Class B ordinary share (Note)		1.06			0.56			0.54			0.08

Tax Effects of Temporary Differences that Gave Rise to Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to the deferred tax balances at December 31, 2021 and 2022 are as follows:

	As of December 31,
	2021			2022			2022
	RMB			RMB			US$
	(In millions)
Deferred tax assets:
Allowance for credit losses		622			616			89
Accrued expenses, payroll and others		3,076			3,861			560
Fixed assets depreciation and intangible assets amortization		4,024			3,767			546
Net operating loss carry-forwards		2,980			4,176			605
Less: valuation allowance		(8,068	)		(10,033	)		(1,454	)
Deferred tax assets, net		2,634			2,387			346

	As of December 31,
	2021		2022		2022
	RMB		RMB		US$
	(In millions)
Deferred tax liabilities:
Long-lived assets arising from acquisitions		508		428		62
Withholding tax on PRC subsidiaries’ undistributed earnings		1,803		1,685		244
Tax on capital gains		996		797		116
Others		241		246		35
		3,548		3,156		457