Business taxes in China: calculator for sole proprietors and companies
Choose a sector, a legal form and a tax system, enter your annual revenue and expenses — the calculator shows every tax and contribution, the total and what you keep.
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Legal forms
Individual business (getihu) 个体工商户
A citizen registered to run a business (personally or as a family); there is no separate legal entity. The simplest form: profit is taxed as business income at 5–35%.
Requirements
Register with the local market regulation authority (市场监督管理部门) and obtain a business licence; any citizen able to run a business may register (Regulation on Promoting Getihu, art. 2).
Bookkeeping: double-entry if average monthly sales are at least CNY 40,000 (services), 60,000 (production), 80,000 (trade); simple books from 15,000 / 30,000 / 40,000; set up books within 15 days of getting the licence and keep them 10 years (Interim Measures on Getihu Bookkeeping, arts. 3, 4, 8, 10).
Business income tax: prepay monthly or quarterly within 15 days after the period ends; annual reconciliation by 31 March of the next year (Individual Income Tax Law, art. 12).
Annual report from 1 January to 30 June via the National Enterprise Credit Information Publicity System or to the registration authority; the year of opening is reported from the next year (Measures on Getihu Annual Reports, art. 3).
Profit minus CNY 60,000 is taxed as business income at 5–35%. Until 31 Dec 2027 the tax on the part up to CNY 2 million is halved.
Conditions
Registration with the market regulation authority; no revenue limit. VAT: small-scale taxpayer with sales up to CNY 5 million a year; VAT and surcharges are not included.
Calculated for actual-books assessment (查账征收). The tax office may impose deemed assessment (核定征收), giving a different amount.
An enterprise of one natural person without legal personality: the investor is liable for its debts with all personal assets (Sole Proprietorship Enterprise Law, art. 2). There is no corporate income tax — the owner pays individual income tax on business income.
Requirements
Conditions: one natural-person investor, a lawful name, a declared contribution (no minimum), fixed business premises and the necessary staff (art. 8); register with the registration authority where the enterprise is located (art. 9); you may not trade in its name before getting the licence (art. 13).
Accounting books are mandatory: if they are missing or incomplete, the tax office assesses the tax on a deemed basis (核定征收), and then no tax reliefs apply (Caishui [2000] No. 91, arts. 7, 10).
Individual income tax on business income: prepay monthly or quarterly within 15 days; annual reconciliation by 31 March of the next year (Individual Income Tax Law, art. 12).
Annual enterprise report from 1 January to 30 June via the enterprise credit information publicity system (Interim Regulation on Enterprise Information Publicity, art. 8).
An enterprise without legal personality: profit minus CNY 60,000 is taxed as the owner's business income at 5–35%. The halving relief for getihu does not apply.
Conditions
The owner is liable for debts with all personal assets. No revenue limit; VAT as for getihu (not included).
A legal entity; the shareholder is liable up to the subscribed capital. If the sole shareholder cannot prove that company assets are separate from personal assets, they are jointly liable for company debts (Company Law, art. 23).
Requirements
Register with the market regulation authority; registered capital is the subscribed amount, which must be fully paid within 5 years of incorporation (Company Law, art. 47).
Corporate income tax: prepay monthly or quarterly within 15 days; annual return and final settlement within 5 months after the year end (CIT Law, art. 54).
Annual report from 1 January to 30 June, including subscribed and paid-in capital (Interim Regulation on Enterprise Information Publicity, arts. 8, 9).
Keep company money separate from personal money (separate account, books, dividends only by decision) — otherwise you are jointly liable for its debts (art. 23).
Corporate income tax 25%; a small low-profit enterprise with taxable income up to CNY 3 million pays effectively 5% (until 31 Dec 2027). Dividends to the owner: 20%.
Conditions
Small low-profit relief: taxable income up to CNY 3 million, up to 300 staff, assets up to CNY 50 million, not a restricted industry. Above CNY 3 million, 25% applies to all of it.
The company is liable for VAT (not included). An owner without salary is not covered by compulsory social insurance.
Software development, IT services, consulting for companies and entrepreneurs.
VAT: a general taxpayer charges 6% (IT and consulting are 'other services'); a small-scale taxpayer (sales up to CNY 5 million a year) pays 3%, currently reduced to 1%, and nothing if monthly sales stay below CNY 100,000 (VAT Law, arts. 9, 10, 23; STA Announcement 2026 No. 4). VAT is not included in the calculation.
A getihu (services) keeps double-entry books if average monthly sales are at least CNY 40,000, simple books from CNY 15,000 (Bookkeeping Measures, arts. 3–4); below that the tax office may allow just a receipts book — the calculation does not cover such cases.
Deemed assessment (核定征收) is not the taxpayer's choice: the tax office applies it if books are missing or unreliable; profit is then revenue × 10–30% ('other industries') and no reliefs apply (Caishui [2000] No. 91, arts. 7, 9, 10). The calculation shows actual-books assessment.
Other business services draft — data being checked
Marketing, design, translation, engineering, bookkeeping and other professional services to companies.
VAT: a general taxpayer charges 6% (marketing, design, translation, engineering, accounting are 'other services'); a small-scale taxpayer (sales up to CNY 5 million a year) pays 3%, currently reduced to 1%, and nothing if monthly sales stay below CNY 100,000 (VAT Law, arts. 9, 10, 23; STA Announcement 2026 No. 4). VAT is not included in the calculation.
A getihu (services) keeps double-entry books if average monthly sales are at least CNY 40,000, simple books from CNY 15,000 (Bookkeeping Measures, arts. 3–4); below that the tax office may allow just a receipts book — the calculation does not cover such cases.
For intermediaries (law, accounting and tax firms) deemed assessment is restricted: the deemed profit rate for law firms is at least 25% and they are moved to actual-books assessment (Guoshuifa [2002] No. 123); the same applies to other intermediaries.
Services to individuals draft — data being checked
Household services, repairs, beauty, tutoring, photography — for private customers.
VAT: a general taxpayer charges 6% (services to individuals; repair and processing of goods 13%); a small-scale taxpayer (sales up to CNY 5 million a year) pays 3%, currently reduced to 1%, and nothing if monthly sales stay below CNY 100,000 (VAT Law, arts. 9, 10, 23; STA Announcement 2026 No. 4). VAT is not included in the calculation.
VAT-exempt: childcare and kindergarten, elderly care, marriage agency and funeral services, and services provided by a person with a disability (VAT Law, art. 24).
A getihu (services) keeps double-entry books if average monthly sales are at least CNY 40,000, simple books from CNY 15,000 (Bookkeeping Measures, arts. 3–4); below that the tax office may allow just a receipts book — the calculation does not cover such cases.
Deemed assessment (核定征收) is not the taxpayer's choice: the tax office applies it if books are missing or unreliable; profit is then revenue × 7–25% (catering and services) and no reliefs apply (Caishui [2000] No. 91, arts. 7, 9, 10). The calculation shows actual-books assessment.
Trade in goods draft — data being checked
Retail and wholesale, including an online shop (excluding excise goods).
VAT: a general taxpayer charges 13% (goods; farm products, edible oil, books 9%); a small-scale taxpayer (sales up to CNY 5 million a year) pays 3%, currently reduced to 1%, and nothing if monthly sales stay below CNY 100,000 (VAT Law, arts. 9, 10, 23; STA Announcement 2026 No. 4). VAT is not included in the calculation.
A getihu (trade) keeps double-entry books if average monthly sales are at least CNY 80,000, simple books from CNY 40,000 (Bookkeeping Measures, arts. 3–4); below that the tax office may allow just a receipts book — the calculation does not cover such cases.
Deemed assessment (核定征收) is not the taxpayer's choice: the tax office applies it if books are missing or unreliable; profit is then revenue × 5–20% (industry, commerce) and no reliefs apply (Caishui [2000] No. 91, arts. 7, 9, 10). The calculation shows actual-books assessment.
There is no minimum tax on turnover: income tax depends only on profit, so with a low markup it is small.
Manufacturing draft — data being checked
Making and selling your own products: food, furniture, clothing, handmade goods.
VAT: a general taxpayer charges 13% (own-made goods); a small-scale taxpayer (sales up to CNY 5 million a year) pays 3%, currently reduced to 1%, and nothing if monthly sales stay below CNY 100,000 (VAT Law, arts. 9, 10, 23; STA Announcement 2026 No. 4). VAT is not included in the calculation.
A getihu (production) keeps double-entry books if average monthly sales are at least CNY 60,000, simple books from CNY 30,000 (Bookkeeping Measures, arts. 3–4); below that the tax office may allow just a receipts book — the calculation does not cover such cases.
Deemed assessment (核定征收) is not the taxpayer's choice: the tax office applies it if books are missing or unreliable; profit is then revenue × 5–20% (industry, commerce) and no reliefs apply (Caishui [2000] No. 91, arts. 7, 9, 10). The calculation shows actual-books assessment.
The small low-profit enterprise relief (5% up to CNY 3 million) does not depend on the sector, unless the industry is restricted or prohibited by the state (Announcement 2023 No. 12).
Assumptions
One owner, tax resident of China, no employees, no other income, no children, full year 2026.
No social insurance: for getihu and sole proprietorship enterprises it is voluntary (flexible-employment scheme); a company owner without salary is not covered. Special additional deductions (housing rent etc.) are not applied.
For the company: the owner takes no salary; profit after tax is either paid out in full as dividends or kept in the company.
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