Corporate Taxation – Tax Rates in China (resident companies)

1 min.

Income: From 1 January 2008, the tax rate is 25% (Enterprise Income Tax). The tax rate can be reduced to 20% for low-profit enterprises. Interest, royalties, rental and leasing income must be included in taxable income and are taxed at 25%.

Capital gains: Capital gains are taxed at the same rate as income (no separate rate)

Withholding taxes on Dividends: There is no withholding tax on dividends paid and received between resident enterprises (except dividends from publicly traded shares of resident companies which have not been held for at least 12 consecutive months).

Withholding taxes on Interest: No withholding tax is imposed on interest derived by a resident enterprise. (interest is subject to business tax in some cases)

Withholding taxes on Royalties: There is no withholding tax on royalties derived by a resident enterprise (but business tax is imposed on royalties)

Contact person

Lawyer in Heidelberg, Richard Hoffmann
Richard Hoffmann
Lawyer in Heidelberg
Phone: +49 6221 9985 639
E-Mail