Monday, January 15, 2007

Foreign business in China to lose preferential tax rates

China is set to unify its corporate tax structure for both domestic and foreign businesses at 25%, resulting in substantial tax burden on overseas-funded companies in the booming country. Chinese companies currently pay income tax at a nominal rate of 33%, while their foreign counterparts – who benefit from tax waivers and incentives to encourage investment in China pay an average of 15%.


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