China's Unified Corporate Income Tax

by Dezan Shira & Associates, Investment Intelligence Unit, Greater China

On March 16, 2007 Chinese lawmakers passed the much talked about corporate income tax law, unifying the tax rates for foreign and domestic enterprises. The new law, which passed 2,826 votes for and 37 against with 22 abstentions, will bring China's tax laws more in line with international standards. It has unified the two existing tax codes; one for domestic enterprises, the other for foreign invested enterprises (FIEs), into one and represents a fundamental change in China's tax policy. Many of the tax incentives and tax holidays that existed in the old code for foreign investors have been changed or eliminated.

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This article included in China Briefing Magazine
May 2007: ANNUAL MINISTERIAL BRIEFINGS ON CHINA'S ECONOMIC DEVELOPMENT & FOREIGN INVESTMENT POLICIES	Other articles in this issue: China Labor Contract Law - legal update by Richard Hoffmann, , Dezan Shira & Associates, Beijing