Equality Could Prove Taxing – Tom Mitchell

From Financial Times:

China’s new Enterprise Income Tax law , passed by the National People’s Congress on March 8, should have surprised no one.

Beijing had long telegraphed its intention to unify the disparate tax rates paid by foreign-invested and domestic companies, with the former paying as little as 15 per cent and Chinese enterprises taxed at 33 per cent or even higher. Shanghai-based Bank of Communications , for example, is estimated to have paid a 70 per cent tax rate in 2004.

Under the new law, all companies will be taxed at 25 per cent. Foreign investors who have campaigned for “national” – by which they mean equal – treatment when it comes to market access could hardly complain. “The new tax law provides a level playing field,” says Becky Lai, a tax services partner with Deloitte . [Full Text]

Open popup

Welcome back!

CDT is a non-profit media site, and we need your support. Your contribution will help us provide more translations, breaking news, and other content you love.