China Tax Rates Guide 2026
Comprehensive overview of China's tax system with detailed rates for corporate income tax, VAT, individual income tax, and other business taxes. Updated for the latest regulations.
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Comprehensive overview of China's tax system with detailed rates for corporate income tax, VAT, individual income tax, and other business taxes. Updated for the latest regulations.
Try Tax Calculator
Key tax rates for businesses operating in China. All rates are effective as of 2026 and subject to specific conditions.
Standard rate for most companies
Varies by industry
Progressive rates
Payments to non-residents
Tax on corporate profits earned in China. Applies to both domestic and foreign-invested enterprises.
| Taxpayer Type | Tax Rate | Conditions | Effective Date |
|---|---|---|---|
| Standard Enterprises | 25% | Most domestic and foreign companies | January 1, 2008 |
| Small Low-Profit Enterprises | 20% | Annual taxable income ≤ ¥1 million | January 1, 2023 |
| Tiny Low-Profit Enterprises | 5% | Annual taxable income ≤ ¥1 million (temporary) | 2023-2026 |
| High-Tech Enterprises | 15% | Certified by relevant authorities | Continuous |
| Advanced Tech Service Enterprises | 15% | Qualified service enterprises | Continuous |
| Encouraged Industries in Western Regions | 15% | Specific industries in Western China | Until December 31, 2030 |
Consumption tax levied on the value added at each stage of production or distribution.
| Category | Tax Rate | Applicable Goods/Services | Notes |
|---|---|---|---|
| Standard Rate | 13% | Sales/import of goods, repair & replacement services, labor services | General VAT rate |
| Reduced Rate 1 | 9% | Transportation, postal, basic telecommunications, construction, real estate leasing, agricultural products | Also for sales/import of specific goods |
| Reduced Rate 2 | 6% | Financial services, lifestyle services, value-added telecom services | Most modern services |
| Zero Rate | 0% | Export of goods/services, international transportation services | Export-oriented businesses |
| Small-Scale Taxpayers | 3% | Annual sales ≤ ¥5 million | Simplified collection method |
Progressive tax on individual income earned in China by both residents and non-residents.
| Annual Taxable Income (¥) | Tax Rate | Quick Deduction (¥) | Monthly Example (¥) |
|---|---|---|---|
| Up to 36,000 | 3% | 0 | Income: 10,000 | Tax: 90 |
| 36,000 - 144,000 | 10% | 2,520 | Income: 20,000 | Tax: 890 |
| 144,000 - 300,000 | 20% | 16,920 | Income: 30,000 | Tax: 2,590 |
| 300,000 - 420,000 | 25% | 31,920 | Income: 40,000 | Tax: 4,590 |
| 420,000 - 660,000 | 30% | 52,920 | Income: 60,000 | Tax: 10,590 |
| 660,000 - 960,000 | 35% | 85,920 | Income: 80,000 | Tax: 19,590 |
| Over 960,000 | 45% | 181,920 | Income: 100,000 | Tax: 29,590 |
Estimate your tax liability in China based on income and business type.
This is an estimate. Actual tax liability may vary based on specific circumstances.
Important considerations for international companies operating in China.
China has double taxation agreements with over 100 countries, which may reduce withholding tax rates on dividends, interest, and royalties.
Substantial tax incentives available for high-tech enterprises, encouraged industries, and businesses in designated regions like Free Trade Zones.
Corporate tax returns due by May 31 annually. Monthly/quarterly VAT filings required. Strict penalties for late filings.
Our tax experts can help you navigate China's complex tax system and optimize your tax position.
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