“Red” China Taxes Capital Relatively Lightly
September 11, 2013
China, one of the fastest growing countries in the world, has a pro-growth tax system. The OECD released a report this week on China’s tax system and how it compares to developed countries. Basically, China is a low tax country over-all and has particularly low taxes on capital. China has a corporate tax rate of 25 percent, compared to the U.S. rate of 39 percent. China has no capital gains tax, a dividend tax of 5 to 10 percent, and no tax on interest earned in bank accounts.
Follow William McBride on Twitter
Was this page helpful to you?
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?Contribute to the Tax Foundation
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?Give Us Feedback