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China vs Japan: tax rates compared
Between the two, Japan's income tax rate (55.9%) tops China's (45%) by 10.9pp. The 200-country average is 28%: both sit above it.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | CN | JP | Difference |
|---|---|---|---|
| Income Tax | 45% | 55.9% | JP +10.9 pp |
| Corporate Tax | 25% | 29.7% | JP +4.7 pp |
| VAT | 13% | 10% | CN +3 pp |
| Capital Gains Tax | 0% | 20.3% | JP +20.3 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| China | 45% | Source: PWC Worldwide Tax Summaries — China, People's Republic of (Individual, Taxes on personal income) · as of 2025-12-31 |
| Japan | 55.9% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −10.9 pp | Japan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| China | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Japan | 29.7% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −4.7 pp | Japan higher |
Between the two, Japan's corporate tax rate (29.7%) tops China's (25%) by 4.7pp. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| China | 13% | Source: PWC Worldwide Tax Summaries — China, People's Republic of (Corporate, Other taxes) · as of 2025-12-31 |
| Japan | 10% | Source: PWC Worldwide Tax Summaries — Japan (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +3 pp | China higher |
Between the two, China's VAT rate (13%) tops Japan's (10%) by 3pp. The 181-country average is 15%: both sit below it. China's figure is dated 2025-12-31 and Japan's 2026-01-13, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| China | 0% | Source: State Taxation Administration Shanxi Provincial Tax Service — Caishuizi [1998] No. 61 (财税字〔1998〕61号) · as of 1998-03-30 |
| Japan | 20.3% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Income determination) · as of 2026-01-13 |
| Difference | −20.3 pp | Japan higher |
Between the two, Japan's capital gains tax rate (20.3%) tops China's (0%) by 20.3pp. The 175-country average is 10.3%: China sits below it, Japan sits above it. China's figure is dated 1998-03-30 and Japan's 2026-01-13, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| China | 0% | Source: PWC Worldwide Tax Summaries — China, People's Republic of (Individual, Other taxes) · as of 2025-12-31 |
| Japan | 0% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
There's no gap here — China and Japan both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it. China's figure is dated 2025-12-31 and Japan's 2026-01-13, so the two rates come from different data vintages.
Not covered for both countries yet: Crypto Tax.