Capital Gains Tax in China

Information about the capital gains tax and taxes that may be due for wealth, inheritance or gifts...

Capital gains tax is levied at 20 percent and must be paid on the transfer of assets such as buildings, equipment, vehicles, securities and land use rights.

Investments: Chinese residents and non-domiciles who are long-term residents in the country must also pay tax on all worldwide investment income. Foreigners who have been resident in China for less than five years generally need only pay tax on income from their Chinese investments.

Property: Residences that have been owned and used by an individual for at least five years are not subject to capital gains tax when they are sold; any losses on a sale are also not deductible against taxable income.

Stocks: There is a provisional exemption for gains made on stock transfers listed on the Chinese stock exchange.

Wealth, Inheritance and Gift Tax

China has no gift tax for gifts between individuals. Gifts given to an employee by an employer are counted as employment income and are taxed accordingly.

There is currently no inheritance or wealth tax.