CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. China To Review Corporate Tax Bill

China To Review Corporate Tax Bill

by Mary Swire, Tax-News.com, Hong Kong

20 December 2006


The Standing Committee of China's National People's Congress, China's highest legislative organ, is set to review proposals to unify the rate of corporate tax paid by domestic and foreign-backed enterprises.

According to a report by state news service Xinhua, the NPC will review the legislation on December 24. If approved, it will likely result in an increase in corporate tax for foreign companies, while domestic entities will see their corporate tax rate cut.

Under current corporate tax law, domestic enterprises pay tax at a rate of 33%, while foreign-backed firms pay 30%. However, foreign companies are able to utilise deductions and other benefits to whittle down their effective corporate tax rate to as low as 13%.

Details of the new tax policy have yet to be released by the Chinese government, but it is thought that it will lead to a single rate of corporate tax of about 25% for all companies. Wang Jianfan, vice director of the Ministry of Finance's tax policy department, also revealed earlier this year that the new laws will provide tax breaks for firms in certain industries.

Government officials have suggested a tentative date of January 2008 for the introduction of the unified corporate tax law.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »