Asia-Pacific · Tax guide
China
China taxes enterprises at 25%, with 15% for high and new technology enterprises and an effective 5% for small low-profit enterprises. VAT is 13%, 9% or 6% depending on the supply under the new VAT Law in force from 2026, invoices are fully digital, and payments of dividends, interest and royalties abroad carry 10% withholding. Taxes are administered by the State Taxation Administration.
At a glance
- Enterprise income tax
- 25%
- Small low-profit enterprises
- 5%
- VAT (general taxpayers)
- 13%, 9% or 6% depending on the supply
- Small-scale VAT
- 3% levy rate (1% until the end of 2027)
- Withholding on payments abroad
- 10%
- Country-by-country reporting
- ¥5.5 billion
15% for high and new technology enterprises
Effective rate, on income up to ¥3,000,000
By type of supply
Annual sales up to ¥5,000,000
Dividends, interest and royalties
Group revenue
Enterprise income tax
Resident enterprises, including foreign-invested companies, pay enterprise income tax at 25%. Certified high and new technology enterprises pay 15%, and small low-profit enterprises pay an effective 5% on taxable income up to ¥3,000,000. Tax is prepaid quarterly and settled in the annual reconciliation by 31 May.
VAT and digital invoices
General VAT taxpayers charge 13%, 9% or 6% depending on the supply and credit input VAT, filing monthly. Businesses with annual sales up to ¥5,000,000 can be small-scale taxpayers paying a 3% levy rate (1% until the end of 2027) on sales. City construction and education surcharges are added to the VAT paid.
Invoices (fapiao) are now issued as fully digitalised e-invoices through the tax authority's platform; input VAT can only be credited with a valid special VAT fapiao.
Payments abroad
Dividends, interest and royalties paid to non-residents carry 10% withholding, reduced by treaty, and royalties and services also carry VAT. Outbound payments above a set amount need a tax record filing with the tax bureau, and profits can only be repatriated once the relevant taxes are settled.
Transfer pricing
Related-party transactions must be at arm's length and reported with the annual return; local files are needed above set transaction values, and groups with revenue of ¥5.5 billion or more file country-by-country reports. China has not yet adopted the global minimum tax rules.
Key dates
- By the 15th of each monthVAT, surcharges and individual income tax withheld on salaries
- Within 15 days after each quarterEnterprise income tax prepayment
- 31 MayAnnual enterprise income tax reconciliation and related-party forms
Figures and sources
9 figures- Enterprise income tax rate25%Checked against the official source
- Rate for certified High and New Technology Enterprises15%Checked against the official source
- Effective rate for small low-profit enterprises5%Checked against the official source
- VAT rates for general taxpayers13%, 9% or 6% depending on the supplyChecked against the official source
- Withholding on dividends, interest and royalties paid to non-residents10%Checked against the official source
- Taxable income limit for small low-profit enterprise treatment¥3,000,000Checked against the official source
- VAT levy for small-scale taxpayers3% levy rate (1% until the end of 2027)Checked against the official source
- Annual sales limit for small-scale VAT taxpayers¥5,000,000Checked against the official source
- Group revenue for country-by-country reporting¥5.5 billionChecked against the official source
Indicative only. This assessment is a high-level overview of tax obligations in China based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in China (a licensed Chinese tax agent or CPA) before making compliance decisions.