China Corporate Tax Guide

The standard picture

Corporate income tax (CIT) is 25% on profits, prepaid quarterly and settled annually. Proper books and fapiao-backed expenses are the foundation of any defensible tax position.

Preferential rates

Small and low-profit enterprises enjoy reduced effective rates on qualifying profits, and certified high and new technology enterprises pay 15%. Eligibility depends on size, industry and certification — we confirm before you rely on a rate.

Withholding on cross-border payments

Dividends, interest and royalties paid to foreign shareholders are generally subject to 10% withholding tax, reduced by many double tax treaties. Treaty relief must be documented and filed correctly.

Annual settlement

The annual CIT filing and settlement closes each tax year (due by 31 May). Losses, deductions and incentives are finalized here — preparation matters far more than the quarterly prepayments.