China Corporate Income Tax Quarterly Prepayment: 2026 Deadlines, 25% Rate, and Filing Rules

Most foreign companies in China focus on the annual corporate income tax reconciliation every May, but the more frequent obligation is the quarterly prepayment — and getting it wrong is a common source of avoidable interest charges and cash-flow surprises. This guide explains how China’s corporate income tax (CIT) provisional payments work in 2026, when they are due, how the amount is calculated, and how to avoid the reconciliation gap that trips up so many first-year entities.

How CIT Prepayment Works

China collects corporate income tax on a pay-as-you-go basis. Rather than waiting until the end of the year, a company remits tax provisionally each quarter based on its results so far, and then reconciles the full-year liability through the annual CIT settlement. The annual reconciliation — known as the huisu qingjiao — determines the final tax due, with any shortfall or overpayment settled at that point.

For a newly established foreign-invested enterprise, the prepayment cycle begins in the quarter the company first generates revenue or is registered as a taxpayer, so it is worth confirming your specific starting obligation with your accountant. Our China bookkeeping and tax deadlines calendar lays out the full year of obligations at a glance.

2026 Filing Deadlines

Quarterly CIT prepayments are due within 15 days after the end of each quarter. In practice the filing and payment deadlines for 2026 fall in mid-January, mid-April, mid-July, and mid-October, with the exact day shifting when the 15th falls on a weekend or public holiday. The annual reconciliation for the previous year is due by May 31.

Missing a prepayment deadline attracts a daily late-payment surcharge on the unpaid amount, so companies that operate on thin administrative staffing should build these dates into a recurring reminder rather than relying on memory. For the standard 25 percent rate and a fuller explanation of how the tax is structured, see our corporate income tax rates and deadlines guide.

How the Prepayment Amount Is Calculated

Most enterprises prepay based on their actual accumulated profit for the period, applying the applicable tax rate to taxable income earned year to date. Enterprises that meet certain conditions may instead be approved to prepay on a monthly or quarterly average of their prior-year or projected profit, which smooths seasonal fluctuations but must be corrected at the annual reconciliation.

Regardless of method, the prepayment is provisional — it does not have to be precise to the yuan. What matters is that the total prepaid through the four quarters reasonably approximates the final annual liability, because the settlement in May settles the difference either way. Underpaying materially throughout the year means a large lump-sum payment plus interest at settlement time.

Rates and Preferential Treatments

The standard CIT rate in China is 25 percent. Qualifying small and low-profit enterprises benefit from substantially reduced effective rates, and companies in encouraged industries or certain free trade zones may qualify for a 15 percent preferential rate. These preferences apply to the prepayment as well as to the annual calculation, so eligibility should be confirmed early rather than discovered at reconciliation. Our guide to how much corporate income tax a foreign company pays explains the rates and eligibility in detail.

Avoiding the Reconciliation Gap

The most common problem foreign companies face is a reconciliation gap: they prepay too little during the year and are hit with a large settlement payment plus interest the following May. The gap usually comes from treating prepayment as optional, from deducting expenses that are not yet substantiated with valid invoices, or from applying a preferential rate the company does not actually qualify for.

The practical fix is disciplined monthly bookkeeping with properly issued invoices for every deductible expense, so the quarterly prepayment figures already reflect true taxable profit. When the annual filing reconciles cleanly to the prepayments, there is no surprise. For how the annual filing itself works, see our CIT annual filing and reconciliation guide, and for ongoing compliance support, our bookkeeping, audit, and tax services keep foreign companies current across every quarterly deadline.