The “double 15%” packages a 15% CIT for substantively-operating encouraged-industry enterprises with a 15% individual income tax (IIT) cap for qualifying talents. 双 15% 将由注册并实质性运营的鼓励类企业适用的 15% CIT，与面向符合条件人才的 15% 个人所得税（IIT）上限打包。 The IIT relief exempts the portion of actual tax burden above … Hainan FTP: incentives and who qualifiesRead more
财税 / Finance & Tax
Hainan FTP preferential CIT: practice notes
Hainan FTP encouraged-industry enterprises registered and substantively operating in the port pay CIT at 15% instead of 25%, but only through 31 December 2027. 注册并实质性运营于海南自贸港的鼓励类产业企业按 15% 而非 25% 缴纳 CIT，但该优惠仅执行至 2027 年 12 月 31 日。 “Substantive operation” requires the … Hainan FTP preferential CIT: practice notesRead more
Annual CIT Settlement (汇算清缴)
The annual CIT settlement (汇算清缴) deadline is 31 May of the year following the tax year (e.g. the 2025 tax year by 31 May 2026) — statutory, not auto-extending, and you must file even with zero profit. 企业所得税汇算清缴截止日为次年 5 月 … Annual CIT Settlement (汇算清缴)Read more
Corporate income tax at a glance
China’s standard corporate income tax (EIT) rate is a flat 25%, unified for domestic and foreign-invested enterprises since 1 January 2008. 中国企业所得税标准税率为统一的 25%，自 2008 年 1 月 1 日起对内资与外商投资企业统一适用。 Resident enterprises are taxed on worldwide income, while non-resident enterprises are … Corporate income tax at a glanceRead more
VAT reform: what foreign firms should note
China’s VAT became statutory law on 1 January 2026 (President Order No. 41), codifying—but not changing—the 13%/9%/6% rates and the 3% small-scale levy rate. 中国增值税于 2026 年 1 月 1 日上升为法律（主席令第四十一号），将 13%/9%/6% 税率与 3% 小规模征收率成文化但未改变。 Retained tax rebates (留抵退税) are … VAT reform: what foreign firms should noteRead more
Small-scale taxpayer VAT relief
A small-scale taxpayer is one whose annual VAT taxable sales do not exceed RMB 5 million; crossing it generally forces general-taxpayer registration, which cannot be reversed. 小规模纳税人指年增值税应税销售额不超过 500 万元的纳税人；一旦跨线通常须登记为一般纳税人且不可逆转。 Monthly sales of RMB 100,000 or less are VAT-exempt; the relief … Small-scale taxpayer VAT reliefRead more
Tax Deregistration and the Tax Clearance Certificate for FIEs Exiting China: Liquidation Income Filing, Instant Processing and the Commitment-Based Tolerance Channel
The tax clearance certificate (清税证明) is the real gatekeeper of an FIE exit: without it the market regulator will not deregister the business licence. 《清税证明》才是外资企业退出的真正关口：没有它，市场监管部门不会办理营业执照注销登记。 Two categories of taxpayer are exempt from the certificate altogether and may go straight to … Tax Deregistration and the Tax Clearance Certificate for FIEs Exiting China: Liquidation Income Filing, Instant Processing and the Commitment-Based Tolerance ChannelRead more