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India vs China Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
India42.7%Lower
China45%
Corporate Tax
India25.2%
China25%Lower
Capital Gains
India20%
China20%
VAT / Sales Tax
India18%
China13%Lower
| Category | India | China |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 42.7% | 45% |
| Corporate Tax | 25.2% | 25% |
| Capital Gains | 20% | 20% |
| VAT / Sales Tax | 18% | 13% |
| Crypto Tax | Yes | Yes |
| Wealth Tax | No | No |
| Tax Treaties | 95 | 110 |
| Currency | INR | CNY |
The bottom line: India vs China
China has the lower headline rate on 2 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. India runs a progressive tax system, while China uses a progressive one. China has the wider tax-treaty network (110 agreements), which can reduce withholding tax on cross-border income.
- Income tax: India is lower (42.7% vs 45%)
- Corporate tax: China is lower (25.2% vs 25%)
- Capital gains tax: identical in both (20%)
- VAT / sales tax: China is lower (18% vs 13%)