Taxes on Earned Income

• As of 2010, taxes on individual earned income were assessed on a sliding scale from 5 percent to 45 percent. Those in the lowest bracket earn less than 500 yuan per month and pay 5 percent of their income in taxes. Those earning over 100,000 yuan per month are assessed 45 percent of their income.
  
  

Capital Gains

• Individual capital gains are not calculated along with earned income but rather are taxable at a rate of 20 percent of the net income.
  
  

Overseas Income

• Individuals who are residents of China, as well as companies, are taxed on any income earned from overseas sources, but are given credit for taxes that are paid abroad.
  
  

Corporate Income Taxes

• Domestic and foreign companies are taxed at a flat rate of 25 percent on corporate income. However, some smaller companies are designated for a reduced tax of 20 percent, and qualified hi-tech start-ups pay a rate of only 15 percent.