# China

 Country code: CN · Currency: CNY · Language: Chinese

**Pros**
- World-class infrastructure and logistics networks for efficient global supply chain management.
- High levels of physical security and low crime rates in major urban business centers.
- Competitive corporate tax incentives for high-tech industries within specialized economic zones.

**Cons**
- Extensive state surveillance and strict internet censorship restricting information flow and personal privacy.
- Arbitrary regulatory enforcement and heavy state intervention in private business operations.
- Systemic corruption and lack of transparent rule of law within the judicial system.

Long story short: Here, the Party never really leaves your office: your bank accounts, your data, your partnerships, they all eventually need an official stamp, and one badly framed social media post can cost you your license. Getting money out of the country can turn into an obstacle course thanks to tight capital controls.

In exchange, you work with infrastructure that feels like science fiction: 300 km/h trains, rock-solid mobile networks, and 20-minute deliveries anywhere in Beijing. In the wealthy districts, street crime is close to nonexistent, even walking alone at 3am. The local banking system is solid but fully state-controlled: no surprise collapses, but no real freedom either.

A few more things worth knowing: food that's mind-blowingly good at every price point, a massive domestic market if you know how to crack it, people who are ruthlessly pragmatic in business, and a cost of living that stays gentle even in Beijing's nicest neighborhoods.

## Will your income be taxed?

Long story short: YES, A LOT.
They'll shear you for up to **45%** at the top marginal rate in **China**, and the taxman has *long arms*: linger a bit too long, park your economic interests here, and the net closes.

Steep rate, wide catchment: the classic combo of states that don't let go of their cash cows. Don't expect a plane ticket to fix it.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 3 → 45% | progressive · 7 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 5,331 | 3% |
| 5,331 – 21,324 | 10% |
| 21,324 – 44,424 | 20% |
| 44,424 – 62,194 | 25% |
| 62,194 – 97,733 | 30% |
| 97,733 – 142,157 | 35% |
| 142,157 + | 45% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | exists here |  |
| Family centre | exists here |  |
| Habitual abode | exists here |  |
| Extended-stay test | exists here |  |

## Will your wealth be taxed?

Long story short: YES, FAIRLY.
**China** takes **20%** when you sell, and that's the whole story: no annual wealth levy, no inheritance regime.

The state waits for the value to move before reaching for it; while it sits, nobody touches it.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 20% | flat |
| Dividend tax | 20% | flat |
| Interest income | 20% | flat |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | UNREGULATED | Fallback rate: 20% · Cryptocurrency transactions and mining are officially banned in China (2021 Notice). However, the State Taxation Administration (STA) applies general Personal Income Tax (PIT) rules to gains, treating them as 'Income from Property Transfer' at a 20% flat rate. Professional or high-frequency trading may be subject to progressive rates up to 45%. Authorities have recently (2024/2025) increased scrutiny on overseas crypto profits of residents, requiring global income disclosure. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | SIGNED | committed but not yet enforced |

## Easy to run a company there?

Long story short: NO.
**China** sits at the punchy end, with corporate tax at **25%**, though an *IP-box* at **15%** buys back part of the bill for IP-heavy businesses.

Outside qualifying IP income, prepare to get squeezed.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 5 → 25% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 444,240 | 5% |
| 444,240 + | 25% |

| Metric | Value | Detail |
| --- | --- | --- |
| VAT standard rate | 13% | 3 distinct tiers in force |

| VAT family | Category | Rate |
| --- | --- | --- |
| Food & drink | food | 9% |
| Food & drink | non-alcoholic | 13% |
| Food & drink | alcohol | 13% |
| Print media | books | 13% |
| Print media | ebooks | 13% |
| Print media | newspapers | 13% |
| Culture | cultural events | 6% |
| Culture | cinema | 6% |
| Culture | theatre | 6% |
| Culture | museums | 6% |
| Culture | sports | 6% |
| Transport | public transit | 9% |
| Transport | rail | 9% |
| Transport | air | 9% |
| Hospitality | hotels | 6% |
| Hospitality | restaurants | 6% |
| Hospitality | takeaway | 6% |
| Health | pharma | 13% |
| Health | medical dev. | 13% |
| Energy | electricity | 13% |
| Energy | natural gas | 9% |
| Energy | district heat. | 13% |
| Energy | domestic fuel | 9% |
| Utilities | water | 9% |
| Utilities | waste | 13% |
| Clothing | kids clothing | 13% |
| Digital & telecom | digital | 6% |
| Digital & telecom | telecom | 9% |
| Digital & telecom | broadcast | 6% |
| Construction | construction | 9% |
| Construction | social housing | 9% |
| Agriculture | farm inputs | 9% |
| Agriculture | animal feed | 9% |
| Personal services | funeral | 6% |
| Personal services | hairdressing | 6% |
| Finance | insurance | 6% |
| Finance | financial svc. | 6% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | 15% | High and New Technology Enterprise (HNTE) and Software/IC Incentives · net income · patents, copyrighted software, designs, know how, plant varieties, industrial processes · vs. 25% corp |
| Misuse of corporate assets | NO CRIMINAL | no criminal liability · Chinese judicial practice, supported by Supreme People's Court precedents, generally holds that a sole shareholder of a one-person company cannot commit embezzlement (Art. 271 Criminal Law) or misappropriation (Art. 272 Criminal Law) against their own company while it is solvent, as there is no infringement of another's property rights. Instead, this act is treated as a 'confusion of property' (财产混同) under Article 63 of the Company Law, which triggers civil liability by piercing the corporate veil and making the shareholder personally liable for all corporate debts. |
| Shareholders privacy | PUBLIC | National Enterprise Credit Information Publicity System (国家企业信用信息公示系统) |
| Directors privacy | PUBLIC | National Enterprise Credit Information Publicity System (国家企业信用信息公示系统) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called 有限责任公司 (外商独资) (Wholly Foreign-Owned Enterprise (WFOE)). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Government Registration Fees & Company Chops | USD 148 |  |
| Professional Incorporation Agency Service Fee | USD 2,962 |  |
| Foreign Document Notarization, Legalization & Translation | USD 1,037 |  |
| Corporate Bank Account Opening & Setup Fees | USD 296 |  |
| Total | USD 4,442 |  |

## A good fit for a holding?

Long story short: NOT REALLY.
**China** carries an *extensive* treaty network (**69** agreements) that cuts inbound withholding nicely.

The missing piece is a participation exemption: dividends coming up from subsidiaries eat the *full* corporate schedule (**25%**) unless a treaty does all the work on its own.

Good for operations; as a pure holding base, the domestic layer helps itself on the way through.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | NONE | no dividend participation exemption regime |
| CFC rules | APPLY | Chinese tax residents may be taxed on the retained profits of controlled foreign entities situated in low-tax regions (effective rate below 12.5%). Such earnings are considered deemed distributions. The authorities maintain a 'white list' of jurisdictions not subject to these specific rules. |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 10% | non-resident outbound |
| WHT · interest | 10% | non-resident outbound |
| WHT · royalties | 10% | non-resident outbound |
| Tax-haven WHT | NONE | no punitive rate on record |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 64 | active |
| Treaties pending | 4 | in negotiation |

## Easy to come and go?

Long story short: SOME.
**China** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | — | available path to naturalisation |
| Marriage | — | available path to naturalisation |
| Birth | — | not available |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: PARTLY.
**China** has signed *most* of the standard exchange frameworks *and* runs a public corporate registry. Your accounts get reported to your home tax office, and your shareholdings sit in the shop window.

Watched on both axes: not wall-to-wall, but don't come here for discretion.

**Multilateral reporting frameworks — 4/9 active · 2 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | In force | 2018 |
| CARF | None | — |
| FATCA | None | — |
| MLI | In force | 2022 |
| BEPS | Signed | — |
| MAAC | In force | 2015 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: NO.
**China** is *clean on every major blacklist* (FATF, EU, France, Spain, Portugal, Brazil) and sits *inside* the FATF club.

Wiring money to or from here raises zero eyebrows: no flags, no extra questions, no compliance officer waking up. Reputationally, a non-event.

**Blacklist exposure — Clear everywhere**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: NO.
Press freedom in **China** is *locked down* (RSF rank **\#178**). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 178/180 | score 14 · ↓ 6 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     e-CNY

The main goal of e-CNY to provide a convenient, yet more efficient and secure retail payment system to increase financial inclusion, preserve monetary sovereignity, and to provide a "back up" payment infrastructure for the private sector payment solutions. Further, fair competition and interoperability should be promoted.

People's Bank of China

   PILOT   —   [announce →](https://finance.sina.cn/bank/yhgd/2025-12-29/detail-inhemiuu8021927.d.html?vt=4 "Announcement")    mBridge

mBridge offers a unique opportunity to improve international trade settlement.Given that the total value of international trade transactions between the four participating jurisdictions amounted to more than USD$730 billion according to the World Bank, the mBridge Steering Committee has given priority to this use case. Testing of sample trade settlement transactions across 11 industries has commenced on the trial platform.

Saudi Arabian Monetary Authority, Hong Kong Monetary Authority, People's Bank of China, United Arab Emirates Central Bank, Bank of Thailand

   PILOT   YES   [announce →](https://www.bis.org/speeches/sp241031.htm%0D%0Ahttps://www.bloomberg.com/news/articles/2024-10-28/bis-debates-ending-project-eyed-by-putin-to-undermine-dollar%0D%0Ahttps://www.ledgerinsights.com/bis-hands-over-mbridge-cbdc-payment-system-after-brics-controversy/ "Announcement")

 programs 2

## Connected to the world?

Long story short: SOMEWHAT CONNECTED.
**China** is only half-plugged in, and it's the half that hurts. *Stripe* won't take local businesses: to charge cards you'll be shopping for workarounds (a foreign entity, a local PSP, a merchant of record).

*Amazon*, at least, delivers to your door. **5/11** of the services we track run here.

**Accept payments — 2/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Not available | wallet payments |
| Adyen | Available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 2/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to China. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Mauritania MR  → ](https://stateless.sx/en/country/mr) [   Ghana GH  → ](https://stateless.sx/en/country/gh) [   Egypt EG  → ](https://stateless.sx/en/country/eg)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

 [   Turkey TR  → ](https://stateless.sx/en/country/tr) [   United Kingdom GB  → ](https://stateless.sx/en/country/gb) [   Serbia RS  → ](https://stateless.sx/en/country/rs)

  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   Ghana GH  → ](https://stateless.sx/en/country/gh) [   Gabon GA  → ](https://stateless.sx/en/country/ga) [   Senegal SN  → ](https://stateless.sx/en/country/sn)