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China to Adjust Tax Policy
China will adjust its tax policy in accordance with the World Trade Organization's bylaws, said Jin Renqing, director of the State Administration of Taxation of China.
In an interview with a Beijing-based newspaper, he said the adjustment would raise China's tax revenues.
The percentage of taxes revenues coming from foreign enterprises would increase, according to Jin, although he did not say how. The State Administration of Taxation of China will draft a new tax policy to attract foreign investments. This policy won't be like previous tax breaks given to every foreign investor, instead, it will be given to projects which China needs investments in.
But, Jin says that China will uphold its promises on tax breaks for foreign capital. The current tax policy will not be amended overnight.
The State Administration of Taxation of China has already planned a strategy to adjust its policies to meet the demands of the WTO. The tax policies that do not meet WTO regulations or the changes promised by the Chinese government during WTO negotiations, must be amended before China joins the WTO. The policies which support dumping and subsidies must be abolished.
The Hong Kong Wen Wei Po Daily has reported that in addition to following the WTO's rules, the State Administration of Taxation of China will adjust it polices based on the new economy industries and raise the competitiveness of domestic enterprises.
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