Tax for Foreign Enterprises Rises

Tax for Foreign Enterprises Rises
Mar 8, 2007 20:20
SERENA07 Points: Join Date: Feb 7, 2007 Status: offline	According to the latest Enterprise Income Tax Law (Draft), the income tax for enterprises with foreign investment and foreign enterprises will rise up to 25%, the same as the tax for domestic enterprises. Comparing with the former 5% income income tax for those foreign companies, the markup is so geat that it means the favourable policies and preferential treatment of Chinese Government towards foreign enterprises are past.

Mar 8, 2007 20:20

SERENA07
Points:
Join Date: Feb 7, 2007
Status: offline

According to the latest Enterprise Income Tax Law (Draft), the income tax for enterprises with foreign investment and foreign enterprises will rise up to 25%, the same as the tax for domestic enterprises.

Comparing with the former 5% income income tax for those foreign companies, the markup is so geat that it means the favourable policies and preferential treatment of Chinese Government towards foreign enterprises are past.

Mar 9, 2007 00:52	#1
APAULT Points: Join Date: Mar 11, 2006 Status: Offline	I'm not sure it means favourable treatment is a thing of the past. This action has removed one feature of the incentives to foreign investors. There are other government incentives I believe. Of course the major incentive is not government sponsored, it is the much lower costs than in their home countries.

Mar 11, 2007 20:02	#2
SERENA07 Points: Join Date: Feb 7, 2007 Status: Offline	I agree with you. The huge market and cheap labour force in China are still incentive to foreign investment. Favourable treatment will work in the area of hi-tech industry of course including the foreign-invested hi-tech companies and programs.

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