China · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
AI-drafted, editorially reviewed. Confirm specifics with the official authority.
When this country treats you as a tax resident
Since 2019: ≥183 days = resident. Worldwide income only after 6 consecutive yrs of ≥183 days w/o 30+ day single absence (reset by any qualifying absence).
- Primary test
- Composite test
- Day threshold
- 183 days
How days are counted: Domicile or 183 days + 6-year rule for foreign income exemption
Also makes you resident
- "Domicile" means habitual residence due to household/family/economic ties
Tax authority: chinatax.gov.cn
Tax residency is decided separately from immigration status — these tests can make you a tax resident whatever visa you hold, and leaving a visa behind does not by itself end them.
Count your days against this rule Compare residency tests across countries
China's main taxes are Individual Income Tax (IIT), Corporate Income Tax and VAT, administered by the State Taxation Administration. Tax residents (generally 183+ days) are taxed on worldwide income, with a six-year rule easing this for some foreigners.
Taxes are administered by the State Taxation Administration (STA) and its local offices. Companies pay corporate income tax, and VAT applies to most sales of goods and services.
- The standard corporate income tax rate is 25%, with reduced rates for qualifying small and high-tech enterprises.
- The standard VAT rate is 13%, with 9% and 6% rates for specified categories.
- Filing is handled through the electronic tax bureau of the STA.
- 1
Determine your tax residency
China taxes residents (generally 183+ days) on worldwide income, with a six-year rule easing this for some foreigners; non-residents are taxed on China-source income.
- 2
Register with the tax authorities
You are registered with the State Taxation Administration; employers handle withholding for employees.
- 3
Understand the taxes that apply
Identify Individual Income Tax (IIT), VAT and Corporate Income Tax for businesses, and social-insurance contributions.
- 4
Have IIT withheld monthly
Employers withhold and prepay IIT monthly on a cumulative basis.
- 5
Complete the annual reconciliation
Complete the annual IIT reconciliation (usually 1 March–30 June) to settle comprehensive income, claiming deductions.
- 6
Pay, keep records and get advice
Pay or claim any difference, keep records, and get advice on the six-year rule and treaty relief.
- Tax residency determined (183 days; six-year rule)
- Tax registration (State Taxation Administration)
- Applicable taxes identified (IIT, VAT, Corporate Income Tax, social insurance)
- Monthly IIT withholding
- Annual IIT reconciliation (Mar–Jun)
- Special additional deductions claimed
- Records kept
- Advice on six-year rule / treaty relief
- State Taxation Administration (STA)
National tax authority.
Frequently asked questions
When am I a tax resident in China?
You are generally a tax resident if you spend 183 or more days in a year in China; residents are taxed on worldwide income subject to specific rules.
How is individual income tax calculated?
IIT on employment income uses progressive brackets with a standard deduction and additional itemised deductions; employers usually withhold monthly.
Is there relief for foreigners on foreign income?
A six-year rule can exempt some foreign-sourced income for non-domiciled individuals who break residence within the period; the details are specific, so verify current rules.
Government portals
- China Government Portal — State Council official portal — policy releases, public services, and government documents
- Ministry of Foreign Affairs — China's foreign policy and consular services — passport, visa, and consular protection info
- National Immigration Administration — Visas, permanent residency, and border control for foreigners entering China
- State Taxation Administration — Personal income tax filing, business tax registration, and VAT invoice verification