💰 Tax
Enterprise Income Tax Law of the PRC (2008) · Yalla China
قانون ضريبة دخل الشركات (2008) / Enterprise Income Tax Law (2008)
Enacted: 2007-03-16 ✅ Effective: 2008-01-01
📝 Overview
Unifies the corporate income tax system in China to cover domestic and foreign companies at a unified rate of 25%, with incentives for specific sectors.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
The Enterprise Income Tax Law (2008) provides: (1) Unified tax rate: 25% on net company profits; (2) Reduced rates: 15% for companies in high-tech sector and special economic zones; (3) Withholding at source: 10% on dividends, interest, and royalties remitted abroad; (4) Permanent establishments: foreign companies with permanent establishment in China subject to tax on income attributed to the establishment; (5) Treaty benefits: tax treaties with other countries reduce withholding rates.
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
If your company is resident in China, it is subject to 25% corporate income tax. Check whether your company qualifies for reduced rates due to activity in the high-tech sector or location in a special economic zone.
📎 Official source
National People's Congress of China
🕒 Updated: 16 March 2026