China's tax system includes Corporate Income Tax (CIT), Value-Added Tax (VAT), Individual Income Tax (IIT), and Withholding Tax (WHT). This guide provides a complete overview of all major tax rates in China for 2026, in one place.
China Tax Rate Summary Table 2026
| Tax Type | Standard Rate | Reduced Rate | Who Pays |
|---|---|---|---|
| Corporate Income Tax (CIT) | 25% | 15% (HNTE/FTZ/western); 20% (small profit) | All enterprises |
| VAT - Goods | 13% | 1% (small-scale, temp) | General/small-scale taxpayers |
| VAT - Services | 6% | 1% (small-scale, temp) | Service providers |
| VAT - Transport/Utilities | 9% | - | Transport, utilities, agriculture |
| Individual Income Tax (IIT) | 3-45% progressive | ¥5,000/month deduction | Individuals (residents & non-residents) |
| Withholding Tax (dividends) | 10% | 5% (treaty-dependent) | Non-resident recipients |
| Withholding Tax (interest) | 10% | 0-10% (treaty-dependent) | Non-resident recipients |
| Withholding Tax (royalties) | 10% | 5-10% (treaty-dependent) | Non-resident recipients |
| Stamp Duty | 0.03% (contracts) | Varies by document type | Both parties |
| Consumption Tax | Varies (1-56%) | - | Specific goods (luxury, tobacco, fuel) |
| Customs Duty | 0-100% (MFN rates) | 0% (FTA preferential) | Importers/exporters |
Note: "Business Tax" (营业税) was abolished in 2016 and fully replaced by VAT. All references to "business tax" in older materials refer to the old system.
Corporate Income Tax (CIT) Rates
| Entity Type | CIT Rate | Conditions |
|---|---|---|
| Standard enterprise | 25% | Default rate |
| HNTE (High-New Tech Enterprise) | 15% | IP ownership, R&D ≥3-5% revenue, tech staff ≥10% |
| Western region encouraged | 15% | Encouraged industries in Western China |
| Hainan FTP encouraged | 15% | Encouraged industries in Hainan FTP |
| FTZ eligible (Lingang/Qianhai) | 15% | Specific FTZ pilot industries |
| Small low-profit enterprise | 20% | Annual taxable income ≤¥3M, assets ≤¥50M, employees ≤300 |
| Software enterprise (years 1-2) | 0% (exempt) | First 2 profitable years |
| Software enterprise (years 3-5) | 12.5% | Years 3-5 after exemption |
| Key software enterprise | 10% | National key software list |
Detailed CIT Guide → | HNTE 15% CIT Guide → | All Tax Incentives →
VAT Rates
| Category | Rate | Examples |
|---|---|---|
| Goods (sales, imports) | 13% | Manufacturing, trading, electronics |
| Transport, utilities, agriculture | 9% | Logistics, water/electricity/gas, farming |
| Services, finance, healthcare | 6% | Consulting, R&D, banking, medical |
| Small-scale taxpayer | 3% (temp 1%) | Annual sales ≤¥5M; 1% rate extended through 2026 |
| VAT exemption | 0% | Small-scale with monthly sales ≤¥100K |
Detailed VAT Guide → | Small-Scale Taxpayer Guide →
IIT Rates (Progressive)
| Monthly Taxable Income (after deductions) | Rate | Quick Deduction |
|---|---|---|
| ≤¥3,000 | 3% | ¥0 |
| ¥3,001-12,000 | 10% | ¥210 |
| ¥12,001-25,000 | 20% | ¥1,410 |
| ¥25,001-35,000 | 25% | ¥2,660 |
| ¥35,001-55,000 | 30% | ¥4,410 |
| ¥55,001-80,000 | 35% | ¥7,160 |
| >¥80,000 | 45% | ¥15,160 |
Standard deduction: ¥5,000/month. Additional deductions: children's education (¥1,000/child), elderly care (¥1,000-2,000), housing rent (¥800-1,500), continuing education (¥400), housing loan interest (¥1,000).
Detailed IIT Guide → | Tax Residency Calculator → | Payroll Calculator →
Withholding Tax Rates
| Payment Type | Standard WHT | Treaty Example (US-China) |
|---|---|---|
| Dividends | 10% | 10% (5% if >25% ownership) |
| Interest | 10% | 10% |
| Royalties | 10% | 10% |
| Service fees | 10% + VAT 6% | Varies (may be exempt if no PE) |
2026 Tax Filing Deadlines
| Deadline | Tax Type | Who |
|---|---|---|
| 15th of each month | VAT monthly filing | General taxpayers |
| 15th after quarter end | VAT quarterly + CIT prepayment | Small-scale + all enterprises |
| March 1 - June 30 | IIT annual reconciliation | All individuals |
| May 31 | CIT annual reconciliation + audit | All enterprises |
| June 30 | Annual business report | All enterprises |
| Monthly by 25th | Social insurance + housing fund | Employers |