China Corporate Tax Calculator – Calculate CIT & Tax Liability Online

  • Adam
  • November 5, 2025

Calculate corporate income tax in China with our free 2025 calculator. Supports standard 25% CIT, small enterprises 5% rate, high-tech 15%, and all preferential rates. Get instant results with detailed breakdowns.

China Corporate Tax Calculator 2025

Calculate your corporate income tax liability in China instantly. This comprehensive calculator supports all CIT rates including the standard 25% rate, preferential rates for small and low-profit enterprises (5%), high-tech enterprises (15%), and various special economic zones. Updated with the latest 2025 tax regulations from the State Administration of Taxation of China.

Calculate Your Corporate Tax

Your Tax Calculation Results

Total Corporate Income Tax Payable:
¥0
Effective Tax Rate:
0%
After-Tax Income:
¥0

Detailed Tax Breakdown

DescriptionAmount (CNY ¥)

Quarterly Tax Payment Schedule

QuarterPayment Amount (CNY ¥)Deadline

Understanding China's Corporate Income Tax System

China's Corporate Income Tax (CIT) system applies to all enterprises operating within the country, including both domestic and foreign-owned businesses. The tax is levied on a company's worldwide income for resident enterprises and on China-sourced income for non-resident enterprises. The CIT framework is governed by the Corporate Income Tax Law of the People's Republic of China and its implementing regulations issued by the State Administration of Taxation.

Standard Rate: 25%

The default corporate income tax rate for most enterprises operating in China, applicable to both resident and non-resident enterprises with establishments in the country.

SLPE Rate: 5%

Small and low-profit enterprises with annual taxable income up to 3 million CNY benefit from an effective rate of 5% through December 31, 2027.

High-Tech Rate: 15%

Qualified high and new technology enterprises receive a preferential 15% rate after meeting specific criteria and obtaining certification.

Withholding Rate: 10%

Non-resident enterprises without establishments in China face a 10% withholding tax on passive income such as dividends, interest, and royalties.

China Corporate Tax Rates Comparison 2025

Enterprise CategoryTax RateValidity Period
Standard Resident Enterprise25%Ongoing
Small and Low-Profit Enterprises (SLPE)5% (effective)Until December 31, 2027
High and New Technology Enterprises (HNTE)15%Ongoing
Advanced Technology Service Enterprises (ATSE)15%Ongoing
Pollution Prevention and Control Enterprises15%Until December 31, 2027
Western Region Encouraged Enterprises15%Until December 31, 2030
Qianhai Shenzhen-Hong Kong Zone15%Until December 31, 2025
Hengqin Guangdong-Macao Zone15%Ongoing
Hainan Free Trade Port15%Until December 31, 2027
Non-Resident Withholding Tax10%Ongoing
Key Software/IC Enterprises10%After 5-year exemption

How to Calculate Corporate Tax in China

Calculating corporate income tax in China involves determining taxable income, applying the appropriate tax rate, and accounting for any deductions or exemptions. Chinese tax law provides two methods for calculation: the direct method and the indirect method, with the indirect method being more commonly used in practice.

Basic CIT Formula

CIT Payable = Taxable Income × CIT Rate - Tax Reductions/Exemptions

Direct Method of Calculation

Taxable Income = Gross Income - Non-Taxable Income - Tax-Exempt Income - Deductions - Losses from Previous Years

Components of the Direct Method:

  • Gross Income: Total revenue from all sources including sales, services, property transfers, dividends, interest, rent, and royalties
  • Non-Taxable Income: Government subsidies, administrative fees, and other specified non-taxable items
  • Tax-Exempt Income: Government bond interest, qualified inter-company dividends, and non-profit organization income
  • Deductions: Reasonable business expenses, costs, taxes (excluding CIT and VAT), losses, depreciation, and amortization
  • Previous Year Losses: Accumulated losses that can be carried forward for up to 5 years (10 years for certain enterprises)

Indirect Method of Calculation

Taxable Income = Accounting Profit ± Tax Adjustments - Losses from Previous Years

The indirect method starts with accounting profit from financial statements and makes adjustments for differences between accounting standards and tax regulations. This method is preferred by most enterprises as it aligns with standard bookkeeping practices.

Deductible Expenses and Limitations

Chinese tax law specifies limits on certain deductible expenses. Understanding these caps is essential for accurate tax calculation and compliance.

Expense CategoryDeduction Limit
Employee Welfare Expenses≤ 14% of total employee salaries and wages
Labor Union Funds≤ 2% of total employee salaries and wages
Employee Education Expenses≤ 8% of total employee salaries and wages (excess carried forward)
Business EntertainmentLesser of 60% of actual expenses or 0.5% of sales revenue
Advertising and Publicity≤ 15% of sales revenue (excess carried forward to future years)
Charitable Donations≤ 12% of gross annual profit

Important Note: Non-deductible expenses include dividends paid to investors, CIT itself, tax penalties, fines, sponsorship expenditures beyond the 12% charitable donation limit, and unverified reserves. These items must be added back when calculating taxable income.

Small and Low-Profit Enterprise (SLPE) Qualifications

To qualify for the preferential 5% effective corporate tax rate, enterprises must meet all of the following criteria established by the State Administration of Taxation:

  • Industry Restriction: Must be engaged in industries not restricted or prohibited by the state
  • Annual Taxable Income: Not exceeding 3 million CNY
  • Employee Count: Maximum of 300 employees for industrial enterprises, 80 for other enterprises
  • Total Assets: Not exceeding 50 million CNY for industrial enterprises, 10 million CNY for other enterprises

SLPE Calculation Method: For taxable income up to 1 million CNY, tax is calculated on 12.5% of income at 20% rate (effective 2.5%). For income between 1-3 million CNY, tax is calculated on 25% of the excess at 20% rate (effective 5%). This preferential policy is valid through December 31, 2027.

High and New Technology Enterprise (HNTE) Benefits

Enterprises certified as High and New Technology Enterprises enjoy a reduced 15% CIT rate instead of the standard 25%. To qualify, companies must demonstrate innovation capability and meet stringent requirements:

  • Core Technology: Must possess independent intellectual property rights in core technologies
  • R&D Investment: R&D expenses must meet minimum percentage thresholds of total revenue (varies by company size)
  • High-Tech Products: High-tech product/service revenue must constitute at least 60% of total revenue
  • Personnel Requirements: Science and technology personnel must comprise at least 10% of total employees
  • Innovation Assessment: Must pass comprehensive innovation capability assessment scoring system

HNTE certification is valid for three years and must be renewed. The application process involves review by local science and technology, finance, and tax authorities.

Tax Payment Schedule and Compliance

Corporate income tax in China is settled annually but paid quarterly through provisional payments. Understanding the payment schedule is crucial for cash flow management and compliance.

Quarterly Provisional Payments

Enterprises must file quarterly CIT returns and make provisional payments within 15 days following the end of each quarter:

  • Q1 Payment: Due by April 15
  • Q2 Payment: Due by July 15
  • Q3 Payment: Due by October 15
  • Q4 Payment: Due by January 15 of the following year

Annual Final Settlement

The annual CIT return must be filed within 5 months after the end of the tax year (by May 31 for calendar year enterprises). The final settlement reconciles provisional payments with actual tax liability, resulting in either a refund or additional payment.

Provisional Payment Calculation: Quarterly payments are typically calculated based on actual quarterly profits or by dividing prior year's annual tax by four. Enterprises should choose the method that best reflects their business patterns and ensure adequate payment to avoid penalties.

Special Economic Zones and Regional Incentives

China offers preferential 15% CIT rates to encouraged industries in designated special economic zones to promote regional development and attract investment in strategic sectors.

Western Region Development

Enterprises engaged in encouraged industries in China's western regions benefit from the 15% rate through December 31, 2030. The western region includes provinces and municipalities such as Sichuan, Chongqing, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Ningxia, Qinghai, Xinjiang, Inner Mongolia, and Guangxi.

Guangdong Free Trade Zones

Three special zones in Guangdong Province offer the 15% preferential rate:

  • Qianhai Shenzhen-Hong Kong Zone: Focuses on modern service industries with close Hong Kong integration (valid until December 31, 2025)
  • Hengqin Guangdong-Macao Zone: Promotes Macao economic diversification and cooperation (ongoing preferential policy)
  • Nansha Guangzhou Zone: Targets encouraged industries in the 23 square kilometer trial area (valid through December 31, 2026)

Hainan Free Trade Port

Enterprises registered and conducting substantial operations in Hainan FTP in encouraged industries receive the 15% rate through December 31, 2027. This initiative supports Hainan's development as China's premier free trade port.

Shanghai Lingang New Area

Qualified enterprises engaged in substantial production or R&D in key industries (integrated circuits, artificial intelligence, biomedicine, civil aviation) in the Lingang New Area receive 15% CIT for five years from establishment date.

Withholding Tax for Non-Resident Enterprises

Non-resident enterprises without establishments in China or those deriving China-sourced income unconnected to their Chinese establishments face a 10% withholding tax on passive income types:

  • Dividends and Profit Distributions: Income from equity investments in Chinese enterprises
  • Interest Income: Interest received from Chinese borrowers
  • Royalties: Payments for use of intellectual property, patents, trademarks, or copyrights
  • Rental Income: Rent received from property located in China
  • Property Transfer Income: Gains from selling property rights in China

Double Tax Treaty Benefits: Non-resident enterprises resident in countries with double taxation agreements with China may apply for reduced withholding rates. Common treaty rates range from 5% to 10% depending on the income type and treaty provisions. The Chinese enterprise making the payment acts as the withholding agent.

Research and Development (R&D) Super Deduction

China incentivizes innovation through super deductions for qualified R&D expenses. This powerful tax incentive allows enterprises to deduct more than 100% of eligible R&D expenses when calculating taxable income.

Super Deduction Rates

  • Manufacturing Enterprises: Can deduct 100% of actual R&D expenses plus an additional 100% (total 200% deduction)
  • Other Enterprises: Can deduct 100% of actual R&D expenses plus an additional 75% (total 175% deduction)
  • Small and Medium Enterprises: Special enhanced rates may apply during specific promotional periods

Qualified R&D activities include developing new technologies, products, processes, or substantial improvements to existing ones. Enterprises must maintain detailed records and segregate R&D expenses from regular operating costs.

Tax Administration and Compliance Requirements

Proper tax administration is essential for maintaining compliance with Chinese corporate income tax regulations. Enterprises must establish robust accounting systems and meet various reporting obligations.

Documentation Requirements

  • Accounting Records: Maintain complete accounting books in Chinese following China's Accounting Standards for Business Enterprises
  • Tax Records: Preserve vouchers, invoices, contracts, and supporting documents for at least 10 years
  • Transfer Pricing Documentation: Prepare contemporaneous documentation for related-party transactions if thresholds are met
  • Tax Filing Records: Keep copies of all filed returns and tax payment receipts

Electronic Tax Filing

China's tax authorities have implemented comprehensive electronic tax administration systems. Most enterprises must file returns and make tax payments through the Electronic Tax Bureau platform, which provides online filing, payment, inquiry, and certificate issuance services.

Tax Audits and Inspections

The State Administration of Taxation conducts regular and special tax audits. Enterprises should be prepared for document requests, on-site inspections, and interviews with tax officials. Cooperation and transparent disclosure typically lead to smoother audit processes.

Penalties for Non-Compliance: Late filing incurs penalties of up to 10,000 CNY. Late payment results in daily interest charges of 0.05% of the unpaid amount. Fraudulent practices including tax evasion can lead to substantial fines ranging from 50% to 500% of the evaded tax amount, plus potential criminal prosecution for serious violations.

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Frequently Asked Questions (FAQs)

What is the standard corporate income tax rate in China in 2025?
The standard corporate income tax rate in China is 25% for both domestic and foreign enterprises. This rate applies to resident enterprises on their worldwide income and to non-resident enterprises on their China-sourced income. However, various preferential rates ranging from 5% to 15% are available for qualified enterprises in specific industries or regions.
How do small and low-profit enterprises benefit from reduced tax rates?
Small and low-profit enterprises with annual taxable income up to 3 million CNY qualify for an effective tax rate of 5% through December 31, 2027. The calculation method applies a 20% rate to 25% of the taxable income between 1-3 million CNY. To qualify, enterprises must meet criteria regarding annual income, employee count, total assets, and industry restrictions.
What is the difference between resident and non-resident enterprises for tax purposes?
Resident enterprises are those established under Chinese law or with actual management organs located in China. They pay CIT on worldwide income at rates ranging from 5% to 25%. Non-resident enterprises lack Chinese establishments or have establishments but derive income unconnected to them, paying a 10% withholding tax on China-sourced passive income such as dividends, interest, and royalties.
When are corporate tax payments due in China?
Corporate income tax is paid quarterly with provisional returns due within 15 days after each quarter ends (April 15, July 15, October 15, and January 15). The annual final settlement return must be filed within 5 months after the tax year ends, typically by May 31 for calendar-year enterprises. Any balance due must be paid, or refunds will be processed after the final settlement.
What are the requirements to qualify as a High and New Technology Enterprise?
To qualify for HNTE status and the preferential 15% tax rate, enterprises must possess independent intellectual property rights in core technologies, maintain minimum R&D expense ratios relative to revenue, derive at least 60% of revenue from high-tech products or services, employ at least 10% science and technology personnel, and pass a comprehensive innovation capability assessment. HNTE certification is valid for three years and requires renewal.
Can losses be carried forward in China's corporate tax system?
Yes, tax losses can be carried forward for up to 5 years to offset future taxable income. However, certain qualified enterprises such as those in high-tech, environmental protection, or infrastructure sectors may carry forward losses for up to 10 years. Losses cannot be carried backward to previous years. Enterprises must maintain proper documentation of losses and their utilization.
What is the R&D super deduction and how does it work?
The R&D super deduction allows enterprises to deduct more than the actual amount of qualifying R&D expenses. Manufacturing enterprises can deduct 200% of actual R&D expenses (100% actual cost plus 100% bonus), while other enterprises can deduct 175% (100% actual plus 75% bonus). This incentive significantly reduces taxable income for innovation-focused companies and requires detailed R&D expense tracking and segregation.
Are there special tax rates for enterprises in free trade zones?
Yes, enterprises in designated free trade zones and special economic areas qualify for preferential 15% CIT rates. These include the Qianhai Shenzhen-Hong Kong Zone, Hengqin Guangdong-Macao Zone, Hainan Free Trade Port, Shanghai Lingang New Area, and enterprises in encouraged industries in China's western regions. Each zone has specific eligibility criteria, encouraged industry catalogs, and substantive operation requirements.
What expenses have deduction limitations under Chinese tax law?
Several expense categories have specific deduction caps: employee welfare expenses (≤14% of salaries), labor union funds (≤2% of salaries), employee education (≤8% of salaries), business entertainment (lesser of 60% of actual or 0.5% of revenue), advertising and publicity (≤15% of revenue with carry-forward), and charitable donations (≤12% of gross profit). Expenses exceeding these limits must be added back to taxable income.
How can non-resident enterprises reduce withholding tax rates?
Non-resident enterprises can apply reduced withholding tax rates if they are tax residents of countries that have double taxation agreements with China. Treaty rates typically range from 5% to 10% depending on the income type and treaty provisions. To claim treaty benefits, non-residents must provide required documentation proving treaty residence and beneficial ownership. The Chinese enterprise making the payment handles withholding at the treaty rate upon approval.

Official Sources and References

Disclaimer: This calculator provides estimates based on current tax regulations as of 2025. Tax laws are subject to change, and individual circumstances may vary. For specific tax advice and planning, please consult with qualified Chinese tax professionals or certified public accountants familiar with Corporate Income Tax Law of the People's Republic of China.

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