China Capital Gains Tax
Detailed capital gains tax rates and rules for China in 2026.
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%
Standard Rate
20%
Exemptions
- Gains from the sale of a primary residence owned and occupied for more than 5 years (for individuals)
- Gains from certain qualified corporate reorganizations and restructurings
- Gains on sales of shares on the Shanghai and Shenzhen stock exchanges by individual investors are currently exempt
- Qualified Foreign Institutional Investor (QFII) gains may be subject to or exempt from tax depending on current policies
How China Capital Gains compares
China’s capital gains tax rate of 20% is the 43rd highest of 203 countries TaxAtlas tracks, above the global average of 13.8% and Asia’s regional average of 13.9%.
