East Asia
China: tax at a glance
Residents are taxed on worldwide income at progressive rates up to 45%. Corporate income is taxed at a flat 25%, and VAT applies at multiple rates. There is no inheritance tax or net-wealth tax.
Ways to relocate to China
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 45%Progressive rates run from 3–45% on comprehensive income, with the top bracket applying above ~CNY 960,000/year. Non-domiciled residents are taxed on worldwide income only after six consecutive full years of residence.
- Corporate income
- 25%
- Capital gains
- Individual transfers of property or equity are taxed at a flat 20%. Gains on domestically listed A-shares are generally exempt for individuals.
- VAT / VAT (增值税)
- 13%
- Dividends (WHT)
- 10%
- Interest (WHT)
- 10%
- Royalties (WHT)
- 10%
- Social security (employee)
- About 10.5% (pension 8%, plus medical and unemployment contributions, varying by city).
- Social security (employer)
- About 27%, varying by city, roughly in the 26–28% range.
- Wealth tax
- None
- Inheritance / estate
- No estate or gift tax.
- Property tax
- Urban real estate tax runs about 1.2% of value or 12% of rent. Deed tax on purchase is 3–5%.
- Other
- Housing Provident Fund contributions of 5–12% each from employer and employee.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
Under what is known as the six-year rule, foreign individuals are taxed on foreign-source income paid by foreign entities only after residing in China for 183+ days in each of six consecutive years. The clock resets with a single absence of more than 30 consecutive days in any year. That one trip is the most valuable tax planning device available to foreigners in China.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.