🇨🇳 Tax Overview — China

Wholly Foreign-Owned Enterprise (WFOE)

A WFOE pays corporate income tax (CIT) at a standard rate of 25% on worldwide income. High-Tech Enterprises (HTE) qualifying under MOST (Ministry of Science and Technology) certification pay 15% CIT. Small and micro enterprises (annual taxable income under RMB 3 million, fewer than 300 employees, total assets under RMB 50 million) benefit from a reduced effective rate of approximately 5% on the first RMB 1 million and 10% on the next RMB 2 million. VAT is charged at 13% (goods), 9% (construction, food, agricultural inputs), and 6% (services, intangibles). Withholding tax on dividends to foreign shareholders is 10%, which may be reduced to 5% under the China–Hong Kong or China–Singapore tax treaties. Profit repatriation requires a completed annual audit, CIT filing, and SAFE approval. Transfer pricing rules are stringent — the SAT actively scrutinises related-party transactions.