China Income Tax

China income tax rates are progressively between 5% - 45%, shared out on 9 brackets:

Taxable Income     /     Tax Rate %

CNY 0-500                         5%
CNY 501-2,000                 10%
CNY 2,001-5,000              15%
CNY 5,001-20,000            20%
CNY 20,001-40,000          25%
CNY 40,001-60,000          30%
CNY 60,001-80,000          35%
CNY 80,001-100,000         40%
Above CNY 100,000          45%

* Monthly taxable income = salaries/wages/allowances - fixed monthly deduction.
* Monthly tax payable = [(taxable income × tax rate) - quick calculation deduction].
* Personal fixed monthly deduction to individual Chinese taxpayer is Rmb 2,000 (Rmb 1,600 before 1 March 2022).
* Those taxpayers who are not domiciled in China but derive wages and salaries from sources in China are entitled to a total statutory deduction of Rmb 4,800 per month.


Net income derived from production and business operations by industrial or commercial households (i.e. annual gross income less business costs, expenses and losses) shall be taxable at the following rates:

Annual taxable income (Rmb)        Tax rate (%)
0 - 5,000                               5
5,001 - 10,000                          10
10,001 - 30,000                         20
30,001 - 50,000                         30
50,001 or above                         35


(a) Net income derived from royalties, remuneration for labour services or manuscripts, and income from letting property. That is:
     (i) Where the income from a single payment does not exceed Rmb 4,000
     (ii) Net income = Gross income - Rmb 800
     (iii) Where the income from a single payment exceeds Rmb 4,000
     (iv) Net income = Gross income × 80%.
(b) Net income derived from the assignment of property (i.e. the gain from assignment less the original value of the property and reasonable expenses).
(c) Gross income derived from interest, dividends and bonuses, or contingency income and other income. Such income is taxed at a flat rate of 20%.

Basis - A resident individual, i.e. an individual "domiciled" in the Chinese Mainland, is subject to individual income tax on his/her worldwide income. Most nonresidents or residents of less than 1 year are subject to personal tax only on income sourced in China. Non-domiciled individuals staying in China for more than 1 year but less than 5 consecutive full tax years are subject to individual income tax on Chinasource income, plus foreign income actually borne by Chinese entities or establishments.

Non-domiciled individuals staying in China for more than 5 consecutive full tax years are taxed on worldwide income.

Residence - The test for residence in China is whether an individual is usually or habitually residing in China due to household, family or economic involvement.

Filing status - Each individual must file a separate return; joint filing is not permitted.

All individuals, except for PRC nationals, generally must register with the Chinese tax authorities as soon as they become liable to individual income tax.

Taxable income - Taxable income comprises employment income; production and business income; income derived from contracting for, or leasing operations of, enterprises or institutions; dividends and bonuses; interest income (except interest from bank deposits); royalty income; income from leasing property; income from the assignment or transfer of property; contingency income; unemployment insurance premiums paid by an enterprise in excess of the premium rates specified by law; and other income specified as taxable by the finance department of the State Council.

Capital gains - Gains derived from the sale of property, net of relevant expenses and taxes, are subject to tax at a rate of 20%. Gains on the sale of real property are also subject to Land Value Added Tax. Individuals are generally exempt from tax on gains from the sale of their sole private dwelling if they have occupied the residence for 5 years. Income from currency trading (i.e. the purchase and sale) over the internet is subject to a 20% tax.

Deductions and allowances - Deductions and allowances are available depending on the category of income. For wages and salaries received in the PRC, individuals are entitled to a fixed monthly deduction of RMB 2,000 (foreign nationals are entitled to an additional fixed deduction of RMB 2,800).

Personal basic contributions are deductible for domestic individuals. These include payments to housing funds and certain medical insurance, pension and unemployment insurance payments.

Tax Rates - Nine progressive tax rates ranging between 5% and 45% are levied on wages and salaries. Dividends, royalties, income from leasing property, income from the transfer or assignment of property, income from manuscripts and contingency income are taxed at 20%. Interest on bank deposits is temporarily exempt from individual income tax (previously taxed at 5%). Income from personal services is subject to progressive rates up to 40%.

Stamp duty - Stamp duty at varying rates applies to contracts, agreements and certain documents.

Capital acquisitions tax - No

Real property tax - An individual who rents out his/her own property is subject to urban real estate property tax. The rates vary across China since they are determined by the local authorities.

Inheritance/estate tax - No

Net wealth/net worth tax - No

Tax year - Calendar year

Filing and payment - Individual income tax on wages and salaries is calculated and levied on a monthly basis. Withholding agents and individuals who lodge returns personally must submit tax a return to the tax authorities and make their tax payments to the State Treasury within 7 days after the end of the month in which the income was derived.

Annual filing is required within 3 months of the end of the tax year for individuals who have resided in the PRC for a full tax year and whose annual income exceeds RMB 120,000.

In most cases, an employer or a person who pays taxable income to a taxpayer is obliged to act as a withholding agent and is responsible for filing a tax return and remitting tax payments to the tax authorities on behalf of the individual taxpayer. If there is no withholding agent, the individual is responsible for filing his/her tax return and paying the tax assessed.

Tax Penalties - A late payment surcharge will be imposed on a daily basis at the rate of 0.05% of the amount of underpaid tax. Further penalties may be imposed in addition to the late payment surcharge.


China Corporate Tax

The standard corporate income tax rate in China is 25%. A special tax rate of 20% applies to small-scale enterprises, also a special 15% tax rate applies to state-encouraged new high-technology enterprises.



The passage of the Unified Corporate Income Tax Law ('the New Law') on 16 March 2022 unified the income tax rate for domestic enterprises and foreign invested enterprises (FIEs) and streamlined tax incentives effective from 1 January 2008. All FIEs (i.e. sino-foreign joint ventures and wholly owned foreign enterprises) and foreign enterprises (FEs) with or without establishments in China are now taxed at the same as domestic enterprises. Enterprise Income Tax is charged at the rate 25% on taxable profits in a calendar year.

Subject to a preferential tax rate of 20% for qualified enterprises with small profits, both domestic companies and foreign invested enterprises will be assessed at a unified tax rate of 25%. All FIEs (and those foreign enterprises having their head offices in China) are subject to Enterprise Income Tax on their worldwide profits. Foreign enterprises which have their permanent establishments (PEs) in China are subject to Enterprise Income Tax on profits derived from the permanent establishments. Foreign enterprises without any permanent establishment in China are subject to Enterprise Income Tax on China-source income only.

The New Law introduces a wider concept of management in determining tax residency. A company will be recognised as a China tax resident if it is incorporated in China or its place of effective control and management is in China. The tax year in China is the calendar year (i.e. year ended 31 December).


There is no separate branch income tax.


There is no separate tax levied on capital gains. Capital gains are subject to Enterprise Income Tax as ordinary income. In addition to EIT, any gain realised on the transfer of immovable properties or land use rights is subject to land value appreciation tax.


Land Value Appreciation Tax applies to domestic enterprises, FIEs, FEs and individuals realising gains from the transfer of land use rights, buildings and premises and attached structure.

Land Value Appreciation Tax is charged at progressive rates ranging from 30% to 60% on the 'land value appreciated amount' from sales or transfer of land use rights, buildings or other structures. Under the Chinese constitution, land is publicly owned and cannot be transferred. However, it is possible to transfer the right to use land. Gifts and inheritances are exempted from LVAT.



VAT is levied on the invoiced amount in respect of selling, transferring or importing of commodities, provision of repairs and processing services in China. The basic tax rate of VAT is 17% for most of the taxable goods. A reduced tax rate of 13% is available for specified goods that are mainly agricultural and utility items.

Taxpayers engaged in small scale business are subject to VAT at a special rate of 3%. A small scale business is broadly defined as one with an annual turnover of less than Rmb 0.5m or a retailer or wholesaler whose annual turnover does not exceed Rmb 0.8m. However, businesses taxed at these rates are not entitled to claim any input Value Added Tax paid to set-off against the output VAT. Generally, export goods are exempt from Value Added Tax. Commodities sellers, service providers and importers are the tax collection agents.


Business Tax ranging from 3% to 20% is imposed on various service income (e.g. communication and transportation, construction, financial and insurance, post and telecommunications, culture and sports, entertainment, service etc.) and on sales proceeds from the transfer of intangible assets and immovable properties.

Business tax is generally levied on gross turnover and no tax credit is allowed for taxes paid on business inputs.


Consumption Tax is imposed on 14 categories of consumable or luxury goods (e.g. cigarettes, alcohol, petrol and motor vehicles etc). Consumption Tax rates range from 1% to 45%. Certain products are taxed at a fixed amount based on quantity. The collection of this tax has been shifted to the retailer and is levied by the tax authorities of the retailer's site.


No separate fringe benefits tax is levied in China.


Urban Real Estate Tax is imposed on owners, users or custodians of houses and buildings. Urban Real Estate Tax is imposed at a flat rate of 12% on annual rental income of the leased property or at the rate of 1.2% on the purchase cost of self-used property. A discount of 10% to 30% on the purchase cost is often offered by some local governments in determining the Urban Real Estate Tax. The tax only applies to FIEs, FEs and foreign individuals.


FIEs are required to pay five types of labour insurance (i.e. old-age, medical, unemployment, work-related injury and child bearing) every month on behalf of their employees in China.


Stamp Tax is levied on various contracts including purchase and sale contracts, property leasing, loan contracts, documents for the transfer of property rights, engineering and design contracts, construction and installation, commodity transportation, storage, property insurance contracts, etc. Tax rates range from 0.005% to 0.1%. A fixed amount of Rmb 5 is charged on certificates evidencing rights and licenses.


Deed Tax is imposed on the transferee or assignee to which land use rights or building ownership rights are transferred (sales, exchange or gifts). The tax rate ranges from 3% to 5% depending on the location of the property.


A TAE with an operating period of not less than ten years and located in a Hi-Tech Industry Development Zone designated by the State Council may apply for two years' full exemption on EIT starting from the first profit-making year.

A FIE which remains as a TAE upon the expiration of the normal tax holiday as described above can further enjoy (subject to approval) the half EIT rate for the next three years. The minimum reduced tax rate is 10%.

The New Law repeals the extended three-year tax rate reduction. The remaining holiday will be grandfathered.


Sino-foreign joint ventures engaged in harbour or wharf construction with an operating period of not less than 15 years may apply for five years' tax exemption, starting with the first profit-making year, and a half Enterprise Income Tax rate in the next five years.

Both domestic enterprises and FIEs will continue to be eligible for the above tax incentive under the New Law.


Financial institutions with foreign investment exceeding US$10 million and an operating period of not less than ten years located in SEZs or other districts approved by the State Council are eligible for a one-year tax exemption (starting with the first profit-making year) and a half Enterprise Income Tax rate in the next two years. Both domestic enterprises and FIEs will continue to be eligible for the above tax incentive under the New Law.


FIEs located in central and western parts of China performing certain types of business as listed in the Industrial Catalogue for Guidance of Foreign Investment enjoy a preferential EIT rate of 15% for a further three years after the expiration of any existing tax incentives. TAE and EOE in the region may enjoy a further reduction of Enterprise Income Tax by 50% (subject to a minimum tax rate of 10%). As the Chinese 'Go West' strategy continues, different provinces, autonomous regions and municipalities in the regions will from time to time announce their own preferential measures in light of their local conditions to attract foreign investments.

Both domestic enterprises and FIEs will continue to be eligible for the above tax incentive under the New Law.


Reduced State Enterprise Income Tax rates of 15% to 24% were available to FIEs located in specific designated areas and/or engaged in specific operations.

Under the New Law, the unified tax rate of 25% is gradually phased in with a fiveyear transitional period.

Withholding tax:

Dividends - A 10% withholding tax is imposed on dividends paid to a nonresident company unless the rate is reduced under a tax treaty.

Interest - A 10% withholding tax applies to interest paid to nonresidents unless the rate is reduced under a tax treaty. A 5% business tax also may be imposed.

Royalties - A 10% withholding tax applies to royalties paid to a nonresident unless the rate is reduced under a tax treaty. A 5% business tax is also applicable, but may be waived when royalties are paid for the transfer of technology.

Branch remittance tax - No


China Value Added Tax

Rates - The VAT standard rate is 17%, with a lower rate of 13% applying to certain foods, goods, books and utilities. As from 1 January 2010, a 3% rate applies under the smallscale taxpayer scheme (reduced from 6% or 4%). Lower rates apply to certain transactions involving used goods. Exports are generally zero-rated. As from 1 January 2009, input VAT incurred on the purchase/construction of fixed assets may be credited against output VAT.

Registration - A company is required to register with the local tax authorities at the time of incorporation to have its status recognised. If the taxpayer's status is approved, VAT taxpayers (other than small-scale VAT taxpayers) must register for VAT purposes with the tax authorities. A non-Chinese resident company is not allowed to register for VAT.

Filing and payment - VAT returns must be filed each calendar month and submitted before the 15th of the following month Taxpayers importing goods must pay tax within 15 days after the issuance of the tax payment certificate by Customs.

Other - China imposes 2 other notable indirect taxes: the Business Tax and the Consumption Tax. The Business Tax is a non-recoverable turnover tax imposed on the provision of certain services, the assignment of intangible assets and the sale of immovable property within China. Tax Rates are 3%-5% withheld at source for most services, although a 20% rate applies to entertainment.

Once the taxpayer's tax status has been approved by the tax authorities, the company should register as a Business Tax payer.

Returns must be filed each calendar month and submitted before the 15th of the following month.

The Consumption Tax applies to alcohol, cosmetics, diesel fuel, fireworks, jewellery, motorcycles, motor vehicles, petrol, luxury watches, tobacco, tires, golf equipment, yachts, etc., at rates ranging from 3%-45% of the value of the goods. Once the taxpayer's tax status has been approved by the tax authorities, the vendor should register as a Consumption Tax payer. Returns must be filed each calendar month and submitted before the 15th of the following month.

China Tax Rates


TAX RATES > China Tax Rates


Go to Tax Rates Home Page





Income Tax Rate

Corporate Tax Rate

Sales Tax / VAT Rate

Last Update:  Nov 2010

(This page may show previous year's tax rates. Always check last update time)

Albania Tax RatesALBANIA
Algeria Tax RatesALGERIA
Andorra Tax RatesANDORRA
Angola Tax RatesANGOLA
Anguilla Tax RatesANGUILLA
Antigua & Barbuda Tax RatesANTIGUA & BARBUDA
Argentina Tax RatesARGENTINA
Aruba Tax RatesARUBA
Australia Tax RatesAUSTRALIA
Austria Tax RatesAUSTRIA
Azerbaijan Tax RatesAZERBAIJAN
Bahamas Tax RatesBAHAMAS
Bahrain Tax RatesBAHRAIN
Bangladesh Tax RatesBANGLADESH
Barbados Tax RatesBARBADOS
Belarus Tax RatesBELARUS
Belgium Tax RatesBELGIUM
Belize Tax RatesBELIZE
Benin Tax RatesBENIN
Bermuda Tax RatesBERMUDA
Bosnia & Herzegovina Tax RatesBOSNIA & HERZEGOVINA
Botswana Tax RatesBOTSWANA
Brazil Tax RatesBRAZIL
British Virgin Islands Tax RatesBRITISH VIRGIN ISLANDS
Brunei Tax RatesBRUNEI
Bulgaria Tax RatesBULGARIA
Burkina Faso Tax RatesBURKINA FASO
Burma Tax RatesBURMA
Burundi Tax RatesBURUNDI
Cambodia Tax RatesCAMBODIA
Cameroon Tax RatesCAMEROON
Canada Tax RatesCANADA
Cape Verde Tax RatesCAPE VERDE
Cayman Islands Tax RatesCAYMAN ISLANDS
Central African Republic Tax RatesCENTRAL AFRICAN REP.
Chad Tax RatesCHAD
Chile Tax RatesCHILE
China Tax RatesCHINA
Colombia Tax RatesCOLOMBIA
Comoros Tax RatesCOMOROS
Democratic Republic of Congo Tax RatesCONGO, DEM. REPUBLIC
Republic of Congo Tax RatesCONGO, REPUBLIC OF
Cook Islands Tax RatesCOOK ISLANDS
Costa Rica Tax RatesCOSTA RICA
Cote d'Ivoire Tax Rates Ivory CoastCOTE D'IVOIRE
Croatia Tax RatesCROATIA
Cuba Tax RatesCUBA
Curaçao Tax Rates - Curacao Tax RatesCURAÇAO
Cyprus Tax RatesCYPRUS
Czech Republic Tax RatesCZECH REPUBLIC
Denmark Tax RatesDENMARK
Djibouti Tax RatesDJIBOUTI
Dominica Tax RatesDOMINICA
Dominican Republic Tax RatesDOMINICAN REPUBLIC
Ecuador Tax RatesECUADOR
Egypt Tax RatesEGYPT
El Salvador Tax RatesEL SALVADOR
Equatorial Guinea Tax RatesEQUATORIAL GUINEA
Estonia Tax RatesESTONIA
Fiji Tax RatesFIJI
Finland Tax RatesFINLAND
France Tax RatesFRANCE
French Polynesia Tax RatesFRENCH POLYNESIA
Gambia Tax RatesGAMBIA
Georgia Tax RatesGEORGIA
Germany Tax RatesGERMANY
Ghana Tax RatesGHANA
Gibraltar Tax RatesGIBRALTAR
Greece Tax RatesGREECE
Grenada Tax RatesGRENADA
Guatemala Tax RatesGUATEMALA
Guernsey Tax RatesGUERNSEY
Guyana Tax RatesGUYANA
Honduras Tax RatesHONDURAS
Hong Kong Tax RatesHONG KONG
Hungary Tax RatesHUNGARY
Iceland Tax RatesICELAND
India Tax RatesINDIA
Indonesia Tax RatesINDONESIA
Iran Tax RatesIRAN
Ireland Tax RatesIRELAND
Isle of Man Tax RatesISLE OF MAN
Israel Tax RatesISRAEL
Italy Tax RatesITALY
Ivory Coast Tax RatesIVORY COAST
Jamaica Tax RatesJAMAICA
Japan Tax RatesJAPAN
Jersey Tax RatesJERSEY
Jordan Tax RatesJORDAN
Kazakhstan Tax RatesKAZAKHSTAN
Kenya Tax RatesKENYA
Kuwait Tax RatesKUWAIT
Latvia Tax RatesLATVIA
Lebanon Tax RatesLEBANON
Lithuania Tax RatesLITHUANIA
Luxembourg Tax RatesLUXEMBOURG
Macau Tax RatesMACAU
Madagascar Tax RatesMADAGASCAR
Madeira Tax RatesMADEIRA
Malawi Tax RatesMALAWI
Malaysia Tax RatesMALAYSIA
Maldives Tax RatesMALDIVES
Malta Tax RatesMALTA
Mauritius Tax RatesMAURITIUS
Mexico Tax RatesMEXICO
Moldova Tax RatesMOLDOVA
Monaco Tax RatesMONACO
Montenegro Tax RatesMONTENEGRO
Morocco Tax RatesMOROCCO
Mozambique Tax RatesMOZAMBIQUE
Myanmar Tax RatesMYANMAR
Namibia Tax RatesNAMIBIA
Nepal Tax RatesNEPAL
Netherlands Tax RatesNETHERLANDS
Netherlands Antilles Tax RatesNETHERLANDS ANTILLES
New Zealand Tax RatesNEW ZEALAND
Nicaragua Tax RatesNICARAGUA
Nigeria Tax RatesNIGERIA
Norway Tax RatesNORWAY
Oman Tax RatesOMAN
Pakistan Tax RatesPAKISTAN
Palestine Tax RatesPALESTINE
Panama Tax RatesPANAMA
Papua New Guinea Tax RatesPAPUA NEW GUINEA
Paraguay Tax RatesPARAGUAY
Peru Tax RatesPERU
Philippines Tax RatesPHILIPPINES
Poland Tax RatesPOLAND
Portugal Tax RatesPORTUGAL
Puerto Rico Tax RatesPUERTO RICO
Qatar Tax RatesQATAR
Romania Tax RatesROMANIA
Russia Tax RatesRUSSIA
Rwanda Tax RatesRWANDA
Saudi Arabia Tax RatesSAUDI ARABIA
Senegal Tax RatesSENEGAL
Serbia Tax RatesSERBIA
Sierra Leone Tax RatesSIERRA LEONE
Singapore Tax RatesSINGAPORE
Slovakia Tax RatesSLOVAKIA
Slovenia Tax RatesSLOVENIA
South Africa Tax RatesSOUTH AFRICA
South Korea Tax RatesSOUTH KOREA
Spain Tax RatesSPAIN
Sri Lanka Tax RatesSRI LANKA
Swaziland Tax RatesSWAZILAND
Sweden Tax RatesSWEDEN
Switzerland Tax RatesSWITZERLAND
Syria Tax RatesSYRIA
Taiwan Tax RatesTAIWAN
Tanzania Tax RatesTANZANIA
Thailand Tax RatesTHAILAND
Tunisia Tax RatesTUNISIA
Turkey Tax RatesTURKEY
Turks and Caicos Tax RatesTURKS AND CAICOS
Uganda Tax RatesUGANDA
Ukraine Tax RatesUKRAINE
United Arab Emirates Tax RatesUNITED ARAB EMIRATES
UK Tax Rates United KingdomUNITED KINGDOM
US Tax Rates United StatesUNITED STATES
Uruguay Tax RatesURUGUAY
Uzbekistan Tax RatesUZBEKISTAN
Vanuatu Tax RatesVANUATU
Venezuela Tax RatesVENEZUELA
Vietnam Tax RatesVIETNAM
West Bank Tax RatesWEST BANK
Yemen Tax RatesYEMEN
Zambia Tax RatesZAMBIA
Zimbabwe Tax RatesZIMBABWE

Tax Rates
Tax Rates
Global Average Tax Rates
Historical Tax Rates
Tax News
Tax Videos
Tax Articles
IRS Tax Forms

© 2009-2012
2011 - 2012 Tax Rate Guide and Tax Help Website