China Corporate Profit & Tax Calculator
Estimate your after-tax profit and see a full breakdown of taxes and social security contributions when doing business in China. Designed for foreign investors, entrepreneurs, and financial decision-makers.
1. Business Inputs
Enter your estimated figures. All amounts are in CNY (¥).
Total sales / service income per year
VAT-deductible purchases (input VAT)
Rent, utilities, office, travel, marketing, etc.
For small low-profit enterprise eligibility
Gross monthly salary before deductions
For small low-profit enterprise check (≤ 50M)
Net Profit Summary
Per Year2. Detailed Tax Breakdown
Individual tax calculations and rates applied
Small Low-Profit Enterprise Eligibility
Checking eligibility for reduced CIT rate…
Understanding China’s Tax System
Key tax categories that apply to foreign-invested enterprises in China
Value Added Tax (VAT)
VAT is China’s primary indirect tax. General taxpayers pay 6%, 9%, or 13% depending on industry, but can deduct input VAT on purchases. Small-scale taxpayers pay a reduced 1% rate (through Dec 31, 2027) with no input deduction.
Corporate Income Tax (CIT)
Standard CIT rate is 25%. High-tech enterprises qualify for 15%. Small low-profit enterprises (taxable income ≤ ¥3M, ≤300 employees, ≤¥50M assets) enjoy an effective rate of 5% (25% inclusion × 20% rate, valid through Dec 31, 2027).
Surtaxes & Levies
Three surcharges apply on top of paid VAT (and consumption tax): Urban Maintenance & Construction Tax (7% urban / 5% county / 1% rural), Education Surcharge (3%), and Local Education Surcharge (2%). Total ~12% of VAT paid for urban companies.
Stamp Duty
Stamp duty applies to contracts and documents. Rates range from 0.005% (loan contracts) to 0.1% (property leases). Most common business contracts (sales, services, technology) are taxed at 0.03% of the contract value.
Social Insurance
Employers must contribute to five insurance categories plus housing fund. Employer contributions total approximately 26-28% of salary: Pension (16%), Medical (≈9%), Unemployment (0.5%), Work Injury (0.2-1.9%), and Maternity (included in medical).
Need Personalized Advice?
This calculator provides estimates based on general rules. Actual tax liability depends on your specific industry, location, deductions, and applicable incentives. Contact us for a tailored tax planning consultation. Get Professional Consultation
