China’s transfer pricing rests on the arm’s-length principle (EIT Law Art. 41); authorities may adjust prices departing from independent-party benchmarks and charge back-tax plus interest. 中国转让定价以独立交易原则为基础（企业所得税法第四十一条）；对偏离独立方基准的定价可作调整并补税加收利息。 Every qualifying enterprise must file the Annual Associated-Party Transaction Reporting Form with its CIT … Transfer pricing rules for FIEsRead more
Tax treaty benefits for foreign investors
As of 2025, China’s tax-treaty network covers 114 countries and regions — including 90 Belt and Road partners — among the largest in the world. 截至 2025 年，中国税收协定网络已覆盖 114 个国家和地区（含 90 个共建”一带一路”伙伴），居世界前列。 A treaty reduces the 10% domestic WHT: a … Tax treaty benefits for foreign investorsRead more
R&D super-deduction and VAT-law transition: 2026 tax breaks for foreign-funded firms
Qualified R&D expenses incurred by enterprises are super-deducted at 100% for corporate income tax from 1 January 2023. 自2023年1月1日起，企业符合条件的研发费用按实际发生额100%加计扣除。 Integrated-circuit and industrial-motherboard firms enjoy a 120% R&D super-deduction through 31 December 2027. 集成电路及工业母机企业自2023年1月1日至2027年12月31日享受120%的研发费用加计扣除。 Technology transfer and development services are exempt … R&D super-deduction and VAT-law transition: 2026 tax breaks for foreign-funded firmsRead more
R&D super-deduction for foreign-invested firms
Since 1 January 2023, the standard R&D super-deduction is 100% (so RMB 1 of expense yields RMB 2 of deduction), confirmed as a long-term arrangement. 自 2023 年 1 月 1 日起，标准研发费用加计扣除比例为 100%（每 1 元费用带来 2 元扣除），已明确为长期制度安排。 IC and industrial-machine-tool … R&D super-deduction for foreign-invested firmsRead more
Hainan FTP: incentives and who qualifies
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
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