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.

Last Updated: July 2026 Based on current PRC tax law Disclaimer: For estimation purposes only

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 Year
Revenue (Net of VAT) ¥0
Total Costs & Expenses ¥0
   of which Employee Salaries ¥0
Total Taxes Payable ¥0
Net Profit After Tax ¥0
Net Profit Margin 0%

2. Detailed Tax Breakdown

Individual tax calculations and rates applied

Value Added Tax (VAT) 6%
¥0
Output VAT − Input VAT credit ¥0 − ¥0
Urban Maintenance & Construction Tax 7%
¥0
Education Surcharge 3%
¥0
Local Education Surcharge 2%
¥0
Stamp Duty 0.03%
¥0
Corporate Income Tax (CIT) 25%
¥0
Taxable income × 25% ¥0 × 25%
Employer Social Insurance Contributions ~26.5%
¥0
Pension 16% + Medical 9% + Unemployment 0.5% + Injury 0.2% + Maternity per employee
Total Tax Burden ¥0
Effective Tax Rate (tax / gross revenue) 0%
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Small Low-Profit Enterprise Eligibility

Checking eligibility for reduced CIT rate…

Taxable Income ≤ ¥3M —
Employees ≤ 300 —
Total Assets ≤ ¥50M —

Understanding China’s Tax System

Key tax categories that apply to foreign-invested enterprises in China

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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.

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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).

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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.

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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.

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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).

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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

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Disclaimer: This calculator is provided for general informational and estimation purposes only and does not constitute tax, legal, or accounting advice. Tax laws and regulations in China are subject to frequent changes. Figures calculated here are approximate and may not reflect your specific situation. For accurate tax planning and compliance, please consult a qualified professional. Dan Young Business Consultancy shall not be liable for any decisions made based on the results of this calculator.

Frequently Asked Questions

What taxes does a company pay in China?

A company in China typically faces corporate income tax (CIT) on its taxable profits, value-added tax (VAT) on taxable turnover, and surtaxes levied on VAT, together with stamp duty and other levies depending on its activities.

What is the standard corporate income tax rate in China?

The standard CIT rate is 25%. Reduced treatment is available to qualifying small low-profit enterprises, and a 15% rate applies to High and New Technology Enterprises and to certain encouraged industries. Eligibility conditions must be met and documented.

What VAT rates apply in China?

The main VAT rates are 13%, 9% and 6%, depending on the goods or services supplied. Small-scale taxpayers generally use a simplified levy rate instead, historically 3%. Input VAT may be credited when the business is a general VAT taxpayer and holds valid invoices.

Can foreign-invested companies deduct business expenses?

Yes. Reasonable, genuine and properly documented business expenses are generally deductible when computing taxable profit, subject to limits for items such as entertainment and advertising. This calculator uses simplified assumptions and cannot reproduce every adjustment.

Is this calculator a substitute for professional tax advice?

No. It is an estimating tool for planning purposes. Actual liabilities depend on your accounting treatment, incentives, invoicing status and local practice. For a filing position, speak to our tax team.