China's headline corporate income tax (CIT) rate is 25.
The headline personal income tax (PIT) rate is 45.
The standard VAT/GST (or equivalent consumption tax) rate is 13, 9, or 6 by category. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
An individual with a domicile in China (habitual residence due to household registration, family, or economic ties), or who spends 183 days or more in China in a calendar year, is a Chinese tax resident. Non-domiciled foreign individuals who meet the 183-day threshold are taxed on China-source income plus foreign-source income actually paid or borne by a China entity - but not full worldwide income - until they complete six consecutive 183-day years, at which point worldwide income becomes taxable from the seventh year onward. The six-year count resets if the individual spends more than 30 consecutive days outside China in any year. Non-residents are taxed only on China-source income.
China's CFC rule targets a foreign enterprise controlled by Chinese tax residents (individuals or entities) and established in a jurisdiction with an effective tax rate below 12.5%, where profits are not distributed (or under-distributed) without reasonable business justification. Control generally means a Chinese resident directly or indirectly holds 10% or more of voting shares on any day of the year, with Chinese residents collectively holding 50% or more. Undistributed profits can then be deemed distributed and taxed to resident shareholders. China maintains a "white list" of jurisdictions (including the US, UK, France, Germany, Japan, Italy, Canada, Australia, India, South Africa, New Zealand, and Norway) that are not treated as low-tax for this purpose, and a de minimis exemption applies where the CFC's annual profit is below RMB 5 million.
China disallows interest expense on related-party debt exceeding a safe-harbor debt-to-equity ratio: 5:1 for financial enterprises and 2:1 for all other enterprises. Interest on debt exceeding these ratios remains deductible if the taxpayer can substantiate the financing was on arm's-length terms (typically via contemporaneous transfer pricing documentation).
As of 30 June 2026, China has concluded tax treaties or arrangements with 114 countries and regions per PwC, in addition to separate double-taxation arrangements with Hong Kong SAR and Macao SAR reflecting the "one country, two systems" framework. China has also entered into a number of standalone tax information exchange agreements (TIEAs) with jurisdictions it does not have a full treaty with, including the British Virgin Islands, Cayman Islands, Isle of Man, Liechtenstein, and San Marino.