China

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Country Knowledge

Our local member provided the following preliminary information about doing business in this country.
Please contact the firm for more information and obtain professional advice in each country concerned.
Our local member will be happy to help you proceed with your business!

General information

Languages :

  • Chinese
  • English
  • French

Population : 14.1175 billion as of end of 2022

Currency: CNY

Current Exchange Rate to USD: USD:RMB = 6.79 as of Feb 07 2023

Standard corporate income tax rate:

25% | 15% for hi-tech enterprises

Main tax incentives:

15% corporate income tax for high-tech company

Other incentives:

depending on projects:
- reduction on purchase of land-use rights;
- corporate income tax, VAT and individul income tax refunds;
- 10% cash subisidies provided on amount of investment for production;
- R&D super deduction;
- other subsidies, for example for: training of local staff, international marketing, local patent filing

Standard dividend withholding tax rates:

10% | 5% for certain treaty jurisdictions

Branch taxation:

Same as a limited company but finally combined into the branch's headquarters

Standard Interest withholding tax:

10 %

Interest expense deduction rules:

Interests on loans are tax deductible

Standard royalty withholding tax rate:

10 %

Laws and government

Common law: No

Civil law: Yes

Religious: Buddhist, Taoist, Christian, Moslim

Federal / national only?: Central government in Beijing

State / provincial too?: Provincial goverments in each province

Data privacy rules?:

Yes. Personal Information Protection Law of PRC

Data security rules?:

Yes. Data Security Law of PRC; Cyber Security Law of PRC

Standards & Tax treaties

Number of tax treaties: 101 valid treaties out of 107 signed ones.

OECD MLI treaty signatory?: YES

Type of tax: VAT

Taxes on foreign products?: import duty + 13% VAT

Taxes on foreign services?: 6% VAT

Typical time and cost to incorporate a local private company: 1-3 months; approx. RMB60'000

Typical time and cost to register a branch of a foreign company: 1-3 months; approx. RMB60'000

Typical business/tax/other issues in the country:

1. The CNY is not freely convertible: all FOREX transactions need be confirmed by the State Administration of Foreign Exchange (SAFE)
2. Hong-Kong is legally part of China, but has its own separate customs identity (it is a separate member of the Customs Union), separate currency (freely convertible) and separate legal system; for all business intents and purposes, Hong-Kong needs to be considered as outside of China.

The information provided on this website is intended for general informational purposes only and should not be construed as professional advice. While our members make every effort to ensure the accuracy and reliability of the information presented, we cannot guarantee its completeness, timeliness, or suitability for any particular purpose.

We strongly recommend that you seek professional advice from a qualified expert in the relevant field before making any decisions or taking any actions based on the information provided on this website. Your reliance on any information presented on this website is at your own risk.

Please note that the information on this website is subject to change without notice, and we assume no responsibility or liability for any errors or omissions in the content. By accessing and using this website, you agree to release us from any and all claims, liabilities, and damages arising from your use of the information provided herein.

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