China Income Tax and Corporate Tax Rate for 2017, 2018 and 2019China Income Tax Rate for Financial Year 2017-2018 for salaried Individuals, Self employed persons, Resident individuals and Corporate / Companies.

 

 

China Employment Income Tax Rate for 2017 and Deductions

Monthly Taxable Income (RMB) Tax Rate Quick Reduction (RMB)
Upto 1,500 3% 0
1,500 to 4,500 10% 105
4,500 to 9,000 20% 555
9,000 to 35,000 25% 1,005
35,000 to 55,000 30% 2,755
55,000 to 80,000 35% 5,505
Above 80,000 45% 13,505

 

IIT on Income and deductions

Income Received from employment including bonuses and stock options, is set at progressive rates from 3% to 45%. It usually deducted by employers and paid to tax authorities on on monthly basis.

Monthly taxable income is calculated after a standard deduction of RMB 4,800 for Foreign Nationals, including residents of Hon Kong, Macau  and Taiwan.

The period for which individual is actually worked in China is the base to determine whether or not income is sourced insider or outside in China.

- Income from providing services in China

- Income from leasing property to a lessee for use in China

- Income from transferring buildings and land use located in China

- Income from licensing the use of proprietary rights in China

- Interest, Dividend and bonus income derived from companies, enterprises and other organizations or Individuals in China.

 

Annual Bonus Tax Rate

Annual Bonus Amount (RMB) Tax Rate
Upto 18,000 3%
18,001 to 54,000 10%
54,001 to 108,000 20%
108,001 to 420,000 25%
420,001 to 660,000 30%
660,001 to 960,000 35%
Above 960,000 45%

 

Taxable Income of Foreign Individual in China

Federally and each province and Territory

Status of Tax Payer Taxable Income
Living in China 90 days or more (183 days if there is a tax treaty in place) Income Sourced within China

Income paid by overseas employer (not borne by the Chinese Operation) is exempt

Living in China less than 90 days (183 days if there is a tax treaty but less than one year) Income Sourced within China

Income sourced outside of China is not subject to IIT, unless tax payer is a director or senior manager of a Chinese domestic enterprise.

Living in China between one and 5 years Income Sourced within China

Income sourced outside of China paid by a Chinese Enterprise or Individual.

Living in China up to 5 years Income sourced within and outside China from the sixth year onwards for every full year spent in China.

 

Corporate Income Tax Rate in China for Financial Year 2017-2018

Standard Corporate Income Tax Rate is 25%

The following industries are allowed a lower CIT Rate

Industry and Qualifying Conditions Reduced tax rate Period Tax Rate
Qualified new/high tech enterprises. An enterprise has to fulfill a set of prescribed criteria and be subject to an assessment in order to qualify as a new/high tech enterprise. - 15%
Integrated circuit (IC) production enterprises with a total investment exceeding 8 billion renminbi (CNY), or that produce integrated circuits with a line-width of less than 0.25 micrometre. - 15%
Key software production enterprises and IC design enterprises. An enterprise has to fulfil a set of prescribed criteria and be subject to an assessment in order to qualify as a key software production enterprise or key IC design enterprise. - 10%
Qualified technology-advanced service enterprises. An enterprise has to fulfill a set of prescribed criteria and be subject to an assessment in order to qualify as a technology-advanced service enterprise. - 15%
Qualified technology-advanced service enterprises in the 15 innovative service development pilot areas (e.g. Shanghai, Tianjin, Guangzhou, Shenzhen). This incentive is only available to enterprises that are mainly engaging in the prescribed technical services, and an enterprise has to fulfill a set of prescribed criteria and be subject to an assessment in order to qualify as a technology-advanced service enterprise. 1 January 2016 to 31 December 2017 15%
Enterprises established in the Qianhai Shenzhen-Hong Kong Modern Services Industry Cooperation Zone. Provided that the enterprise is engaged in projects that fall within the Catalogue for CIT Preferential Treatments of the zone. - 15%
Enterprises established in Zhuhaiís Hengqin New Area. Provided that the enterprise is engaged in projects that fall within the Catalogue for CIT Preferential Treatments of the area. - 15%
Enterprises established in the Pingtan Comprehensive Experimental Zone. Provided that the enterprise is engaged in projects that fall within the Catalogue for CIT Preferential Treatments of the zone. - 15%
For qualified small and thin-profit enterprises with annual taxable income of less than CNY 500,000, the CIT. 1 January 2017 to 31 December 2019 10%
Encouraged enterprises in the Western Regions 1 January 2011 to 31 December 2020 15%

 

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