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Tax Comparison

China Corporate Tax Rate vs UAE — How Much Could You Save?

China companies pay up to 25% corporate tax. UAE free zone companies pay 0% on qualifying income. Use our calculator below to see your potential annual saving.

China corp tax: 25% UAE free zone: 0% UAE corp tax: 9% (above AED 375K)

China vs UAE Tax Rates

Tax Type China UAE Free Zone UAE Mainland
Corporate Tax 25% 0% 9% (above AED 375K)
Personal Income Tax Up to 45% 0% 0%
VAT / GST 13% 5% 5%
Capital Gains Tax Varies 0% 0%
Dividend Withholding Tax Varies 0% 0%

China and the UAE have a Double Taxation Avoidance Agreement (DTAA). China-UAE Double Tax Treaty in force. UAE tax residents are generally exempt from Chinese tax on UAE-sourced income, though China has strict CFC and exit tax rules. Professional advice strongly recommended.

Interactive Calculator

Calculate Your Tax Saving

Enter your annual business profit and see how much you could save by operating through a UAE free zone.

Your Details

¥
¥0¥10,000,000¥20,000,000
🇨🇳
China
Corporate tax: 20%
¥400,000
estimated tax
Best option
🇦🇪
UAE Free Zone
Corporate tax: 0%
¥0
estimated tax
🏙️
UAE Mainland
9% above AED 375K
¥112,500
estimated tax
Annual saving vs China
¥400,000
AED 200,000 per year

Estimates based on headline corporate tax rates. Does not account for all surcharges, reliefs, or individual circumstances. Not tax advice. Consult a qualified tax professional.

Why Chinese Entrepreneurs Move to UAE

0% Personal Income Tax

No income tax on your salary, dividends, or capital gains as a UAE resident — compared to 45% top rate in China.

100% Foreign Ownership

Keep full ownership of your company. No local partner required. Full repatriation of profits and capital.

UAE Residency Visa

A free zone trade license entitles you to a 2–3 year UAE residency visa. Sponsor family members on your visa.

No Forex Restrictions

Move money freely. No capital controls. Maintain bank accounts in multiple currencies without restriction.

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Talk to a UAE setup specialist

Get a free consultation and find out exactly how much your business could save by moving to a UAE free zone.

Frequently Asked Questions

What is the corporate tax rate in China?
China has a standard corporate income tax rate of 25%. High-tech enterprises qualify for a 15% rate. Small and low-profit enterprises (taxable income ≤ CNY 3M) are taxed at 20%.
What is personal income tax in China?
China has a progressive personal income tax from 3% to 45% on income above CNY 960,000/year.
Is there a China-UAE tax treaty?
Yes, China and UAE have a Double Tax Treaty. However, China has strict controlled foreign company (CFC) rules and potential exit taxes. Chinese nationals relocating should consult a specialist.

Tax rates shown are estimates based on representative headline corporate tax rates for the stated tax year. They do not account for all surcharges, slab details, reliefs, or individual circumstances. This is not tax advice. Always consult a qualified tax professional for your specific situation. Data last reviewed: .

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