China draft law sets unified corporate tax rate at 25 pct |
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Thu, 08 Mar 2007 01:49
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BEIJING (XFN-ASIA) - A draft corporate income tax law has set the unified rate for foreign and domestic firms at 25 pct, according to a copy of a speech that will be delivered by the finance minister, Jin Renqing, later today.Jin will say that the unified tax rate is mainly intended to ease the burden on domestic enterprises and minimize as much as possible the tax burden on foreign-funded companies.'The loss of revenue (from lowering tax on domestic firms) should be within an acceptable margin, and the level of global enterprise income tax rates, especially in neighboring countries, has been taken into account,' Jin said.Overseas companies currently pay an average of 15 pct in income tax in China, compared to the 33 pct paid by local companies.He added that the new tax law will not greatly affect the cost structures of foreign companies, with some foreign-funded enterprises continuing to benefit from preferential tax rates, including high-tech enterprises.China's National People's Congress (NPC) is scheduled to vote on the draft corporate tax law next Friday.will.davies@afxasia.com
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China says considered wide range of views in drafting tax law 