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Tax in mainland China

Your personal tax guide for mainland China

The content in this tax guide is provided by EY.

Going to or leaving mainland China

Local tax information for mainland China

Local information Details
Tax authority State Administration of Taxation (SAT)
Website www.chinatax.gov.cn
Tax year 1 January to 31 December
Tax return due date Monthly tax returns due 15 days after month end, annual tax returns between 1 March and 30 June of the following year, depending on circumstances
Is joint filing possible No

Are tax return extensions possible

No

Local tax information for mainland China

Local information Tax authority
Details State Administration of Taxation (SAT)
Local information Website
Details www.chinatax.gov.cn
Local information Tax year
Details 1 January to 31 December
Local information Tax return due date
Details Monthly tax returns due 15 days after month end, annual tax returns between 1 March and 30 June of the following year, depending on circumstances
Local information Is joint filing possible
Details No
Local information

Are tax return extensions possible

Details No

Annual taxable income bands for residents.

Annual taxable income band CNY National income tax rates

1 to 36,000

3%

36,001 to 144,000

10%

144,001 to 300,000

20%

300,001 to 420,000

25%

420,001 to 660,000

30%

660,001 to 960,000

35%

960,001 +

45%

Annual taxable income bands for residents.

Annual taxable income band CNY

1 to 36,000

National income tax rates

3%

Annual taxable income band CNY

36,001 to 144,000

National income tax rates

10%

Annual taxable income band CNY

144,001 to 300,000

National income tax rates

20%

Annual taxable income band CNY

300,001 to 420,000

National income tax rates

25%

Annual taxable income band CNY

420,001 to 660,000

National income tax rates

30%

Annual taxable income band CNY

660,001 to 960,000

National income tax rates

35%

Annual taxable income band CNY

960,001 +

National income tax rates

45%

Effective from 1 January 2019, employment income is accumulated for purposes of calculating monthly tax liabilities for China residents. Income tax for individuals is computed on a monthly basis by applying the above progressive annual tax rates to employment income.

Rental or leasing income is subject to tax at a flat rate of 20%.

For China residents, labour services income, royalties and copyright income can have a deduction of 20% of income, and copyright income can have a further 30% deduction of income.

Employment income, labour services income and royalties must be aggregated as consolidated income and the above progressive annual tax rates are applied to compute the annual tax liability.

A Chinese individual is allowed a flat CNY 60,000 deduction each year in computing their net taxable income and expatriate employees are allowed a deduction of CNY 5,000 per month. Approved charitable donations are also deductible.

Employees, self-employed individuals and individual partners of partnerships can claim a deduction for their contributions to qualified commercial health insurance schemes from taxable income. The deduction is capped at CNY 2,400 per year (that is, CNY 200 per month).

Income tax for non-resident individuals is computed on a monthly basis by applying progressive monthly tax rates for employment income, labour services income, royalties and copyright income.

Expat tax guides

Read tax guides for expats provided by EY.

Additional information

The Tax Navigator section is provided by EY in accordance with their Terms and Conditions (PDF). EY accepts no responsibility for the accuracy of this information. By using this information, you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 15/09/21 by EY and published in its Worldwide Personal Tax Guide, 2020-21.

Tax legislation and administrative practices may change, and this content is a summary of potential issues to consider. This content is provided for guidance purposes only; it is not meant for direct implementation of transactions or reliance upon when considering entering into transactions. It should not be used as a substitute for professional tax, legal, financial, accounting, consulting, regulatory or other professional advice and you should seek professional advice before taking any action. It is your responsibility to ensure you make all relevant disclosures to the relevant tax authorities and that you are compliant with local tax legislation. EY accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

HSBC accepts no responsibility for the accuracy of this information.

This information does not constitute advice and no liability is accepted to recipients acting independently on its contents. The views expressed are subject to change.

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