China Tax Rates
China operates a progressive individual income tax system with rates ranging from 3% to 45%, administered by the State Taxation Administration (STA). The corporate income tax rate is a standard 25%, with preferential rates for qualifying high-tech enterprises and small businesses. China levies a value-added tax with a standard rate of 13% and has been actively expanding its tax treaty network to support its growing role in the global economy.
Top Income Tax Rate
45%
Corporate Tax Rate
25%
VAT / Sales Tax
13%
Capital Gains Tax
20%
Detailed Tax Information
Income Tax Brackets
China's individual income tax (IIT) applies a progressive rate structure with seven brackets ranging from 3% to 45% on comprehensive income, which includes wages, salaries, remuneration for personal services, author's remuneration, and royalties. A standard deduction of CNY 60,000 per year (CNY 5,000 per month) applies, along with special additional deductions for children's education, continuing education, housing loan interest, housing rent, elderly care, and serious illness medical expenses. Non-residents are taxed on China-sourced income only.
| Income Range | Tax Rate |
|---|---|
| ¥0 – ¥36K | 3% |
| ¥36K – ¥144K | 10% |
| ¥144K – ¥300K | 20% |
| ¥300K – ¥420K | 25% |
| ¥420K – ¥660K | 30% |
| ¥660K – ¥960K | 35% |
| ¥960K+ | 45% |
Corporate Tax
China's standard corporate income tax (CIT) rate is 25%. High and new technology enterprises (HNTEs) qualifying under government criteria enjoy a reduced rate of 15%. Small and low-profit enterprises benefit from a significantly reduced effective rate, with taxable income up to CNY 3 million subject to an effective rate of approximately 5%. Companies in encouraged industries in western China may also qualify for a 15% rate. Enterprises in certain free trade zones and special economic zones may receive additional preferential treatment.
Standard Rate
25%
Small Business Rate
5%
Capital Gains Tax
Capital gains in China are generally taxed at a flat rate of 20% for individuals. For enterprises, capital gains are included in taxable income and taxed at the standard 25% corporate income tax rate. Notably, individual investors trading shares on China's domestic stock exchanges (A-shares) are currently exempt from capital gains tax, a policy that has been continuously renewed. Property transfer gains for individuals are taxed at 20% of the net gain, though a simplified method of 1-2% of the gross transfer price may apply in some cases.
Short-Term Rate
20%
Long-Term Rate
20%
Rate
20%
VAT / Sales Tax
China's value-added tax (VAT) system has three main rates: 13% (standard rate for most goods, manufacturing, and processing), 9% (for transportation, construction, agricultural products, and real estate), and 6% (for services including financial, modern, and lifestyle services). Small-scale taxpayers may use a simplified calculation method with a 3% collection rate. China completed its VAT reform (replacing the business tax with VAT) in 2016, unifying indirect taxation under the VAT system.
Standard Rate
13%
Cryptocurrency Tax
China has effectively banned cryptocurrency trading and mining since September 2021, when the People's Bank of China and other regulators declared all cryptocurrency transactions illegal. Prior to the ban, crypto gains would have been classified as property transfer income subject to 20% individual income tax. While Chinese residents technically should not be engaging in crypto transactions, any gains that are identified would be subject to taxation as property transfer income.
Tax Treaties
China has one of the world's largest tax treaty networks, with over 110 double taxation agreements in force covering most major economies and many developing nations. These treaties generally provide reduced withholding tax rates on dividends, interest, and royalties. China has also signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and participates in the OECD's Base Erosion and Profit Shifting (BEPS) framework.
Treaty Network
110
Double taxation agreements
Major treaty partners:
Key Details
Relocate to China
See how much you could save by moving here from your current country.
+$6K
Tax in United States
$24K
24.4% effective
Tax in China
$18K
18.0% effective
You Save
26.2%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
