China’s State Council has announced that individual income tax on bank savings will be cut from 20 percent to 5 percent starting August 15, 2007.

Income tax was leveled on personal bank savings on Nov. 1, 1999 as a means of encouraging consumption and investment, adjusting personal income and increasing national revenue. This reduction is an attempt to leverage the inflation caused by overinvestment in recent years.

This entry was posted on Friday, July 27th, 2007 at 9:49 am and is filed under Finance, Tax & Accounting. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.