Source: CCTV.com

12-25-2006 10:42

China is preparing to adjust its current preferential tax system for enterprises. The Standing Committee of the National People's Congress accepted the draft proposal to unify the income tax laws for both domestic and foreign capital.

The new rules specified that the income tax rate for both domestic and foreign capital funded enterprises will be 25 percent. Officials say the unification of income tax laws does not mean that current preferential policies will be cancelled at once, but to adjust gradually. According to the new rules, preferential tax will be applied to all high-tech firms in China aiming to encourage innovation and technology promotion. The Ministry of Finance says that the preferential policy for infrastructure projects such as port and road construction will be remained. It will also further cut the tax for welfare and employment service firms.

 

Editor:Lu Yuying