Timetable to Adjust Home, Foreign Enterprise Income Tax Not Set

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Last updated at: (Beijing Time) Thursday, January 10, 2002

Timetable to Adjust Home, Foreign Enterprise Income Tax Not Set

By now, China has not set the specific timetable to adjust the domestic and foreign enterprise income tax, Jin Renqing, Commissioner of State Administration of Taxation said Thursday. China will consolidate the income tax for domestic and foreign enterprises in line with the rules of the World Trade Organization.

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Jin made the remark at the press conference of the Information Office of the State Council, adding that China will consolidate the income tax for domestic and foreign enterprises in line with the rules of the World Trade Organization, but the timetable has not set at present.

Observation & Study Needed

In viewing the current global economy is unstable and in a slowdown, the Chinese government need further observation and study on the global situation before to make the decision of tax readjustment, said Jin.

Tax Revenue Concerning Foreign Enterprises

According to Jin, the foreign enterprises enjoyed a super national treatment in China, with a merely 15% income tax.

In addition, in recent years, the tax revenue concerning the foreign enterprises in China has become the fastest part of the whole tax revenue in growth, and the annual average foreign taxes have topped 100 billion yuan.

China to Unify Home/Foreign-related Taxes in 3 Years

According to the Ministry of Finance, the State Council approved the adjustment plan for a unified income tax policy for domestic and foreign-funded companies in the first half of the year 2001.

Experts say that over a period of time after China's WTO entry five Chinese economic special zones will be allowed to make their own decisions whether to give foreign-funded firms preferential treatment in taxation, but this will not last long. China will have to use 3 years to unify its income tax. China's Tax Revenue Up 21 Percent in 1st 10 Months

Tax Revenue Increased Significantly

China's tax revenue jumped 21. 1 percent year-on-year, or 218.3 billion yuan, to 1.25 trillion yuan in the first 10 months of 2001.

Of the total, 738.1 billion yuan flew into the state coffer, and 513.4 billion yuan was collected by local governments.

Value-added Tax Rose Too

Major increase was seen in the value-added tax, consumption tax, and enterprise and individual income tax in the 10 months, while the taxation gap between the eastern region and central and western regions was shrinking.

China to Unify Home/Foreign-related Taxes in 3 Years

China's Tax Revenue Up 21 Percent in 1st 10 Months

China to Further Reform Individual Income Tax

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