Preferential
Taxation for Foreign-invested
Enterprises to Continue
Jin Renqing, director general of
the State Bureau of Taxation, announced that China will
keep its promise of preferential taxation to foreign-invested
enterprises. |
China's two-tier system of income tax for
domestic- and foreign-invested enterprises has played a major
role in attracting and utilizing foreign investment during the
transitional stage of China's economic system. Since China joined
the WTO, however, fair taxation and national treatment are now
common demands within the domestic market. Unification of the
two systems of taxation will, therefore, be expedited along
with adjustments to taxation policies. According to Jin Renqing,
Director General of the State Bureau of Taxation, although the
super national treatment granted to foreign-invested enterprises
does not violate WTO rules, it impairs market equity. It will,
therefore, be adjusted. Even so, China's promise to foreign-invested
enterprises of preferential taxation still stands, no matter
when reforms and adjustments begin. During the transitional
period the opinions of various parties will be sought, and any
problems and issues dealt with as they arise.
