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8.1.1. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty N/A N/A
Payroll Tax N/A There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees.
Social Security Employer Contribution ~44% Employers must make contributions to pension insurance, medical insurance, unemployment insurance, workplace insurance, maternity insurance, and the housing fund. Each local authority is allowed to set its own rates resulting in a total contribution of around 35% to 50% of gross salary. For most major cities, the rate is around 44%. A maximum monthly salary basis cap applies, which is equal to 3 times the average monthly salary. For larger cities, this results in a basis cap of around CNY 15,000 to 16,000..
Social Security Employee Contribution ~22% Employees must make contributions to pension insurance, medical insurance, unemployment insurance, and the housing fund. Each local authority is allowed to set its own rates resulting in a total contribution of around 15% to 30% of gross salary. For most major cities, the rate is around 22%. A maximum monthly salary basis cap applies, which is equal to 3 times the average monthly salary. For larger cities, this results in a basis cap of around CNY 15,000 to 16,000. The contributions are withheld and paid by the employer.
Property Tax Varies A real estate tax is levied at 1.2% on the assessed value of a property or 12% on the rent received. The tax may be reduced by local governments. An urban land use tax applies at rates ranging from CNY 0.6 to CNY 30 per square meter, depending on the city and location in the city. In general, larger cities apply higher rates. In response the COVID-19 pandemic, an exemption from real estate tax and urban land use tax is provided for land used for the incubating projects, land used for urban bus stations and other public transport, for agricultural product wholesale markets and for enterprises engaged in the storage of strategic commodities until the end of 2023.
Transfer Tax 3% to 5% A deed tax is imposed at a rate of 3% to 5% on the transfer of land or buildings. An exemption from deed tax is available until 31 December 2023 (extended from 31 December 2020) in respect of immovable property involved in qualifying corporate restructuring, subject to certain conditions.
Stamp Duty 0.005% to 0.1% Contracts, agreements, and certain legal documents are subject to stamp duty. Rates range from 0.005% to 0.1%.
Excise Taxes (Consumption Tax) Varies Excise taxes (consumption taxes) are levied on alcoholic beverages, tobacco products, oil products, and certain other luxury goods. Vehicles are also subject to a use tax and a purchase tax. An educational surtax of 3% and a local educational surtax of 2% also applies to the excise duty.
Customs Duty Varies Import duties are imposed on most goods imported into China. Export duties are also imposed on certain goods..
Land Appreciation Tax 30% to 60% A land value appreciation tax applies to gains realized from the transfer of land or buildings at rates ranging from 30% to 60% of the gain. Certain exemptions may apply. Effective 1 January 2021, an exemption on land value appreciation tax is available until 31 December 2023 in respect of immovable property and land-use rights transferred as part of qualifying corporate restructuring and is subject to certain conditions. However, the exemption will not apply where either side of a transfer is a real estate development company.
Environment Protection Tax Varies Effective 1 January 2018, environment protection tax will be imposed at the following standard rates: Air pollution: CNY 1.2 per pollution equivalent value unit; Water pollution: CNY 1.4 per pollution equivalent value unit; Hazardous solid waste: CNY 1,000 per metric ton; Other solid waste: CNY 5 to 25 per metric ton depending on type; and Noise pollution: CNY 350 to 11,200 depending on the level of decibels exceeding set limits. For air and water pollution, a pollution equivalent value unit is determined by dividing the pollution amounts (in kilograms) by a value assigned to the pollutant. This is then multiplied by the applicable rate, resulting in a higher tax on more toxic pollutants. The rates for all pollution types are adjusted within set ranges by provincial governments as needed to meet economic, social, and ecological development goals. In cases where the level of pollutants emitted is higher than set limits, the rate of tax may be doubled or tripled.
Resource Tax Varies Effective 1 September 2020, a resource tax is introduced in China. It will be levied at ad valorem rates ranging from 1% to 15% on specified taxable resources such as oil, metals, and minerals, as well as at per unit rates based on volume on certain other items.
Urban Maintenance and Construction Tax (UMCT) Varies China introduced a new law on Urban Maintenance and Construction Tax (UMCT), replacing the City Maintenance and Construction Tax (CMCT) effective 1 September 2021. The UMCT is charged on the amount of indirect taxes paid, such as VAT and excise duty (consumption tax). The rates vary depending on the taxpayer’s geographical location, i.e., 7% for urban areas, 5% for county/ township areas, and 1% for other areas. Certain transactions are exempt or have preferential treatment, including an exemption for sales of standard gold in kind by a member of the Gold Exchange and Shanghai Futures Exchange, an exemption for the national major water conservancy project construction fund, a 50% exemption for small-scale VAT taxpayers from 1 January 2019 to 31 December 2021, an exemption for self-employed retired military personnel from 1 January 2019 up to 31 December 2021, and a reduction and exemption from UMCT to support and promote entrepreneurship and employment of key groups from 1 January 2019 to 31 December 2025.