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Tax System Tends to Become Unified for Both Domestic and Foreign Enterprises
Authoritative officials of State Bureau of Taxation recently indicated that with the quickening pace of China's entering the WTO, the said bureau will adjust the current tax policy and revise those which do not conform with the WTO regulations and tax policies committed to foreign countries, including tax policies not tally with the anti-dumping and allowance principle. Especially the two sets of tax systems for domestic and foreign enterprises on income tax and some local tax items will be unified.
According to sources, the unfair tax burden for domestic and foreign enterprises is resulted from the preferential polices. The two tax laws for domestic and foreign enterprises show that the rates of the income tax on the two kinds of enterprises are basically identical. The difference lies mainly in the favorable policy. The income tax paid by foreign enterprises is levied generally at a 15 percent rate, while the income tax rate for domestic enterprises is 33 percent.
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