What Is China Corporate Income Tax? Rates & Key Rules

China's Corporate Income Tax (CIT) applies to all enterprises at a standard rate of 25%, with preferential rates available for certain industries and regions.

Standard and Preferential Rates

• 25% — Standard CIT rate
• 15% — High-tech enterprises, key software/IC companies, encouraged industries in Western Regions
• 20% — Small thin-profit enterprises (SMEs with annual taxable income < RMB 3M)
• 10% — Non-resident enterprises without a permanent establishment in China

Resident vs. Non-Resident

A resident enterprise (incorporated or effectively managed in China) is taxed on worldwide income. A non-resident enterprise is taxed only on China-sourced income.

Filing and Compliance

CIT returns are filed annually by May 31, with quarterly provisional filings. Key deductions include cost of goods sold, operating expenses, depreciation (10–20 years for buildings, 5–10 years for equipment), and R&D expenses (175% super deduction). Withholding tax on dividends paid to foreign parent companies is generally 10% (reduced under tax treaties).