The enterprise income tax rate is 25%. Government offers preferential tax rates to enterprises operating in vital sectors and projects that are supported and promoted by the state.

Basic tax rate: 25%

The enterprise income tax rate is 25%.

>>>Policy reference: Article 4 of the Enterprise Income Tax Law of the People's Republic of China

Preferential tax rate: 20%

Small enterprises earning low profits:

1. Eligible small enterprises earning low profits may access a reduced enterprise income tax rate of 20%.

>>>Policy reference: Article 28 of the Enterprise Income Tax Law of the People's Republic of China

2. Small enterprises with low profits will see a reduction in taxable income to 25%, with the enterprise income tax rate set at 20%. This policy is set to be enforced until December 31, 2027.

>>>Policy reference: Announcement of the Ministry of Finance and State Taxation Administration Relevant Tax Policies on Further Supporting the Development of Micro and Small-Sized Enterprises and Self-Employed Industrial and Commercial Entities (Cai Zheng Bu, Shui Wu Zong Ju Gong Gao [2023] No. 12)

Preferential tax rate: 15%

1. High-tech enterprises:

High-tech enterprises receiving significant state support are eligible for a reduced enterprise income tax rate of 15%.

>>>Policy reference: Article 28 of the Enterprise Income Tax Law of the People's Republic of China

2. Technologically advanced service enterprises:

Accredited technologically advanced service enterprises are eligible for a reduced enterprise income tax rate of 15%.

>>>Policy reference: Notice of the Ministry of Finance, State Taxation Administration, Ministry of Commerce, Ministry of Science and Technology, and National Development and Reform Commission on Promoting the Implementation of the Enterprise Income Tax Policy for Technologically Advanced Service Enterprises Nationwide (Cai Shui [2017] No. 79)

3. Technologically advanced service enterprises for trade in services:

Technologically advanced service enterprises for trade in services are eligible for a reduced enterprise income tax rate of 15%.

>>>Policy reference: Notice of the Ministry of Finance, State Taxation Administration, Ministry of Commerce, Ministry of Science and Technology, and National Development and Reform Commission on Promoting the Implementation of the Enterprise Income Tax Policy for Technologically Advanced Service Enterprises in Pilot Areas for Innovative Development of Trade in Services Nationwide (Cai Shui [2018] No. 44)

4. Third-party enterprises engaged in the pollution prevention and control:

Eligible third-party enterprises engaged in pollution prevention and control may access a reduced enterprise income tax rate of 15%. These enterprises mentioned in the Announcement refer to those entrusted with the operation and maintenance of environmental pollution treatment facilities, either by pollutant-discharging enterprises or the government. This policy is set to be enforced until December 31, 2027.

>>>Policy reference: Announcement of the Ministry of Finance, State Taxation Administration, National Development and Reform Commission, and Ministry of Ecology and Environment on Questions of the Enterprise Income Tax Policy for Third-Party Enterprises Engaged in the Pollution Prevention and Control (Cai Zheng Bu, Shui Wu Zong Ju, Guo Jia Fa Zhan Gai Ge Wei, Sheng Tai Huan Jing Bu [2023] No. 38)

Preferential tax rate: 10%

1. Key integrated circuit design enterprises and software enterprises receiving support from the state:

From January 1, 2020, key integrated circuit design and software enterprises supported by the state will be exempted from enterprise income tax in their first five years of profitability since they start to make profits, followed by a reduced enterprise income tax rate of 10% thereafter. The list of eligible key integrated circuit design and software enterprises receiving state support is formulated by the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the State Taxation Administration, and other relevant departments.

>>>Policy reference: Announcement of the Ministry of Finance, State Taxation Administration, National Development and Reform Commission, and Ministry of Industry and Information Technology on the Enterprise Income Tax Policy for Supporting the High-Quality Development of Integrated Circuit Industry and Software Industry (Cai Zheng Bu, Shui Wu Zong Ju, Fa Zhan Gai Ge Wei, Gong Ye He Xin Xi Hua Bu [2020] No. 45)

2. Non-resident enterprises:

Non-resident enterprises, as stipulated in Article 27 (V) of the Law of the People's Republic of China on Enterprise Income Tax are eligible for a reduced tax rate of 10% on their income during the enterprise income tax payments. Where a non-resident enterprise has not set up any institutions or establishments in China, or it has done so but the income it earns is not relevant to these institutions or establishments, it shall pay tax on the portion of its income generated in China.

>>>Policy reference: Article 91 of the Regulation on the Implementation of the Enterprise Income Tax Law of the People's Republic of China

For any queries, please call the 12366 tax payment service hotline or reach out to the competent tax authority.