Source: CCTV.com

12-12-2007 11:27

China's State Administration of Taxation published the country's new corporate income tax law on Tuesday. The law says tax on small-and-medium-sized enterprises and high tech companies will be alleviated to support their development.

The regulations, to take effect on Jan. 1, 2008, replace two earlier regulations promulgated by the government more than a decade ago.

Song Lan, Deputy Director of State Administration of Taxation said "According to the new Corporate Income Tax Law, small enterprises with little profit will be levied at a tax rate as low as 20 percent. The law will also make favorable conditions easier for small-and-medium-sized enterprises to access. High tech companies, both home and abroad, will enjoy a tax rate at 15 percent."

The tax rate cut from the current 33 percent means a lower tax burden on SMEs. Corporate income tax on solely owned enterprises and partnership companies will be abolished to avoid double taxation.

It will be the first time since 1978 that China puts domestic and foreign firms on an equal footing in income taxation in an effort to promote fair competition.

 

Editor:Xiong Qu