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ReturnChina:Unified corporate tax scheme expected to pass
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admin
PublishDate：
2007-03-01 15:59:00
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Chinanews, Beijing, March 1 - After being pigeonholed for ten years, the unified corporate tax will be handed over for discussion at the upcoming fifth session of the National People's Congress that will be held in March. Most insiders say the new tax scheme will be approved almost for sure, which shows that Chinese economic system will become mature and regulated in a more organized way.
Since the opening-up, China has offered “super national treatment” to foreign companies by letting them enjoy preferential tax policies in order to attract more foreign investment. The nominal tax rate for foreign companies that make investment in China is 15%. However, the actual tax rate for these foreign companies is 11%, far below the 33% tax rate specified in related laws and regulations. Analysts say that due to the Asian financial crisis, China postponed the reform of the tax rate scheme until last year when it was put on the agenda.
Under the new tax scheme, both domestic and foreign companies in China will pay a unified corporate tax rate of 25%.
According to Chinese legislative process, if the new tax scheme is adopted, it will start to take effect on January 1, 2008. According to Jin Renqing, Chinese Finance Minister, the implementation of the new tax scheme shows that Chinese economic system will become mature and more organized.
The unified corporate tax shows that China is making big changes to its foreign investment policies, analysts said.
Source:chinanews
Since the opening-up, China has offered “super national treatment” to foreign companies by letting them enjoy preferential tax policies in order to attract more foreign investment. The nominal tax rate for foreign companies that make investment in China is 15%. However, the actual tax rate for these foreign companies is 11%, far below the 33% tax rate specified in related laws and regulations. Analysts say that due to the Asian financial crisis, China postponed the reform of the tax rate scheme until last year when it was put on the agenda.
Under the new tax scheme, both domestic and foreign companies in China will pay a unified corporate tax rate of 25%.
According to Chinese legislative process, if the new tax scheme is adopted, it will start to take effect on January 1, 2008. According to Jin Renqing, Chinese Finance Minister, the implementation of the new tax scheme shows that Chinese economic system will become mature and more organized.
The unified corporate tax shows that China is making big changes to its foreign investment policies, analysts said.
Source:chinanews
