At a glance
| Tax | Standard rate | Notes |
|---|---|---|
| Corporate income tax (CIT) | 25% | 15% for HNTEs and encouraged industries in some zones |
| Small low-profit enterprises | Effective 5% | Until 31 December 2027, subject to conditions |
| VAT | 13% / 9% / 6% | Small-scale taxpayers 1% through 2027 |
| Individual income tax | 3%–45% | Progressive, on comprehensive income |
| Dividend withholding tax | 10% | Often reduced under tax treaties |
| Interest and royalties paid abroad | 10% WHT | Plus VAT on some services |
Corporate income tax
The standard rate is 25% of taxable profit. Qualifying High and New Technology Enterprises pay 15%, as do encouraged-industry companies in zones such as Hainan, Qianhai, Hengqin and Lingang. Small low-profit enterprises (taxable income up to RMB 3 million, up to 300 employees, total assets up to RMB 50 million) pay an effective 5% until the end of 2027.
VAT
Since 1 January 2026, VAT is governed by the VAT Law. The main rates are 13% (goods, processing, most tangible assets), 9% (transport, construction, real estate, basic utilities) and 6% (most services).
Individual income tax
Residents pay 3% to 45% on comprehensive income after a basic deduction of RMB 60,000 a year. The employer withholds it monthly through payroll.
Paying profits out
Dividends to a foreign parent bear 10% withholding tax, often reduced by treaties. Structuring through a Hong Kong holding company can lower it if the conditions are met.
Our accounting & tax team keeps your filings current as rules change.