Source: CCTV.com

12-31-2007 12:28

China's State Council has published policies aimed at cushioning the impact of enforcing the unified corporate income tax law. The new law sets a single rate of 25 percent for income tax charged to both domestic and foreign-funded companies, and replaces two earlier regulations that date back more than a decade.

The new law will be implemented in phases over five years. Companies that currently face a rate of 15 percent will pay 18 percent in 2008, 20 percent in 2009, 22 percent in 2010, 24 percent in 2011 and, finally, 25 percent from 2012. Companies that are exempt from taxes or have concessional rates will retain their preferential treatment until the original expiration date. The transitional steps target companies registered with industry and commerce administrations before March 16th this year.

The new law will, for the first time since 1978, put domestic and foreign firms on an equal footing in income taxation in government efforts to promote fair competition.

 

Editor:Du Xiaodan