Features of the tax system of the People’s Republic of China at the present stage
https://doi.org/10.24182/2073-9885-2026-19-2-100-107
Abstract
The purpose of this article is to investigate the historical development and contemporary features of the tax system in the People’s Republic of China. The paper examines key stages of fiscal reforms in China since 1978 and analyzes the structure of current state budget revenues, which are primarily formed by VAT and corporate income tax. The author concludes that China’s current tax policy primarily pursues several equally prioritized objectives— stimulating the development of new economic sectors while maintaining a socialist orientation, balanced growth, and active state intervention in the redistribution of public goods; the existing system continues to adapt to address regional inequalities and stimulate the economy, demonstrating a specific level of tax rates compared to other world regions, while exhibiting its characteristic challenges.
About the Author
D. P. Minin
P.A. Stolypin International Institute of informatization and public administration
Russian Federation
Russian Federation
Assistant
Moscow
References
1. China Statistical Yearbook 2025: Stat. yearbook. China YearBooks. Beijing, 2025. URL: https://www.stats.gov.cn/sj/ndsj/2025/indexeh.htm (accessed 15.11.2025).
2. Doing Business archive. Ease of Doing Business in China. The World Bank Group. 2023. URL: https://archive.doingbusiness.org/en/data/exploreeconomies/china (accessed 15.11.2025).
3. Implementing Regulations of the Value Added Tax Law of the People’s Republic of China (Resolution No. 826 of the State Council of the People’s Republic of China). Ministry of Ecology and Environment of the People’s Republic of China. 2025. URL: https://www.mee.gov.cn/zcwj/gwywj/202512/t20251231_1139498.shtml (accessed on 15.05.2025).
4. Latov Yu.V. «Oriental Despotism» by K.A. Wittfogel (to the 50th anniversary of the «strange» book). Historical and Economic Research. 2007. No. 2. P. 8–38.
5. Liu F., Simon D., Sun Y., Cao C. China’s innovation policies: Evolution, institutional structure, and trajectory. Research Policy. 2011. Vol. 40. P. 917–931. DOI: 10.1016/j.respol.2011.05.005. (accessed 15.11.2025).
6. Lv B., Zhang Z. Reform of China’s taxation system: from embedment in the economy to embedment in society. The Journal of Chinese Sociology. 2022. Vol. 9. № 3. P. 1–23. DOI: 10.1186/s40711-022-00161-6 (accessed 15.11.2025).
7. OECD. Corporate Income Tax Rates Database. URL: https://www.oecd.org/en/data/datasets/corporate-income-tax-rates-database.html (accessed 15.11.2025).
8. Revenue Statistics in Asia and the Pacific 2022 – China. OECD. 2021. 2 p. URL: https://www.oecd.org/tax/tax-policy/revenue-statistics-asia-and-pacific-china.pdf (accessed 15.11.2025).
9. Sokolov B.I., Liu Yuizhuo. Tax Reforms: China’s Experience – Lessons for Russia. Finance and Credit. 2014. No. 30(324). Pp. 26–41.
10. The People’s Republic of China: In-Depth Tax Facts and Figures 2025. PWC. 2025.
11. The State Administration of Taxation deeply studies, disseminates, and implements the spirit of the 20th CPC National Congress. State Administration of Taxation of the People’s Republic of China. 2022. URL: https://baijiahao.baidu.com/s?id=1748186076819190475&wfr=spider&for=pc (accessed on 15.05.2025).
12. The Third Plenary Session of the Twentieth Central Committee of the Communist Party of China Begins in Beijing. 2024. URL: http://www.caccpallp.com/article/619. (accessed 15.11.2025).
13. Trofimov A.A. Features of modern budgetary and legal regulation in China. Vestnik of St. Petersburg University. Series 14. Law. 2020. No. 4. P. 993–1008.
14. V.V. Ivanov, N.V. Pokrovskaya. Financial System of China: textbook. M. 2018. 351 p.
15. Zhang Peisen. Tax Relief for Special Zones, Development Zones and Open Zones. Chinese Jurist. 1989. № 3. URL: http://gdlawyer.chinalawinfo.com/fulltext_form.aspx?Gid=1778398362&Db=lawfirmarticles (accessed 15.11.2025).
Review
For citations:
Minin D.P. Features of the tax system of the People’s Republic of China at the present stage. Entrepreneur’s Guide. 2026;19(2):100-107. (In Russ.) https://doi.org/10.24182/2073-9885-2026-19-2-100-107
Views:
88
JATS XML
Email this article 