China Taxation

Corporate income tax standard tax rate is 25%. For a certain kind of qualified enterprises which are engaged in industries encouraged by the China government such as high technology industry can enjoy a more favourable rate as 15%.

The second main tax category is Value Added Tax (VAT), which applies to sales of goods. The tax rate is being from 13% to 17%.

The third main category is business tax which applies to the provision of service; transfer of intangible properties; and the sale of real estate properties in China. Tax rates start from 3% to 20%.

China has capital gain tax. Any gain derived from disposal of real property, the net sale profit is subjected to 20% tax. The sole resident property for individual who resided therein for more than more years is exempt from capital gain tax.