Tax Law 税法

China adopts a compound tax system of multiple tax categories. The competent authority is the State Taxation Administration (国家税务总局), a direct subordinate to the State Council.

Under the current system, 18 categories of tax are established, grouped as follows:

Turnover Taxes 流转税

Taxes on goods and services:

• Value-Added Tax 增值税 — VAT Law (effective January 1, 2026)
• Consumption Tax 消费税 — 15 categories of taxable consumer goods
• Tariffs 关税 — customs duties on imports and exports
• Tobacco Tax 烟叶税

Income Taxes 所得税

• Enterprise Income Tax 企业所得税 — statutory rate 25%
• Individual Income Tax 个人所得税 — progressive rates 3–45%

Property Taxes 财产税

• House Property Tax, Vehicle & Vessel Tax, Urban Land Use Tax

Resource and Environmental Taxes 资源环境税

• Resource Tax 资源税
• Environmental Protection Tax 环境保护税

Other Taxes 其他税种

• Stamp Tax, Deed Tax, and others — Vehicle Purchase Tax, Urban Maintenance & Construction Tax, Tonnage Tax, Cultivated Land Occupation Tax, Land Value Increment Tax

---

Practical Topics for Foreign Investors

• Tax Incentives 税收优惠 — preferential CIT, R&D deductions, SEZ policies
• Transfer Pricing 转让定价 — TP rules, documentation, APA
• Tax Treaties 税收协定 — DTA network, treaty benefits
• Tax Administration 税收征管 — STA structure, registration, fapiao system

---

Source: MOFCOM Foreign Investment Guide (2025 Edition), State Taxation Administration