China Corporate Income Tax
Detailed corporate income tax rates and rules for China in 2026.
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%
Additional Notes
China operates a worldwide taxation system for resident enterprises (those incorporated in China or with effective management in China). Non-resident enterprises are taxed only on China-sourced income. Withholding tax of 10% applies to dividends, interest, royalties, and capital gains paid to non-resident enterprises, subject to reduction under applicable tax treaties. Transfer pricing rules require arm's length transactions between related parties.
How China Corporate Tax compares
China’s corporate tax rate of 25% is the 69th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Asia’s regional average of 19.7%.
