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China

Asia

A profit-share is business operation income at 5-35% (or labour-service/comprehensive income at 3-45%). The dominant issue is not the rate but that receiving and converting crypto is outright illegal in mainland China, creating serious AML/regulatory exposure.

How it's classified

Self-employment / business operation income (经营所得) if registered; otherwise labour-service income rolled into comprehensive income.

Tax rate

5-35% business operation income; or 3-45% if treated as comprehensive (labour-service) income.

Social contributions

Voluntary self-pay basic pension + medical for flexible-employment individuals; rates set provincially.

Registration / regime

Deemed/approved levy (核定征收) for individual industrial-and-commercial households - a de facto presumptive regime at local discretion.

Crypto payouts

ILLEGAL - total ban reaffirmed 2025 covering crypto trading, OTC fiat conversion and stablecoins (USDC/USDT); only e-CNY is legal. Receiving/cashing USDC creates AML exposure that overshadows the tax question.

General information only — this is not tax or legal advice. Rules change and depend on your situation. Always confirm with a qualified tax professional in your country.
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