Draft law proposes a 25% income tax rate

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Source: CCTV.com | 12-25-2006 14:04

The draft law proposes a 25% income tax rate for both domestic and foreign-funded businesses. It compares favorably with average international rates. There are over 150 countries and regions that levy corporate income tax at an average of 28.6%.

The bill has also proposed a series of transitional measures to help implement the changes to the income-tax structure. The bill allows a greater variety of businesses to enjoy preferential tax rates such as hi-tech companies, who will enjoy a 15% rate in order to boost innovation. According to the new bill, companies who invest in equipment for environmental protection and water conservation could use these investments to offset their tax payable.

Editor:Du Xiaodan