Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: cpt :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: empanelment :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: VAT RATES :: articles on VAT and GST in India :: due date for vat payment
 
 
News Headlines »
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice

China plans uniform tax for local, overseas companies
January, 25th 2007

China reiterated plans to create a uniform tax system for domestic and overseas companies, as it seeks to encourage the growth of local enterprises and to reduce its $177.5 billion trade surplus. "Reform is urgently needed,'' State Administration of Taxation deputy tax commissioner Wang Li said at press conference in Beijing on Wednesday. The current system "isn't conducive to creating a level playing field'' for local enterprises.

Overseas-owned companies often pay taxes at a rate less than half that of Chinese companies as they benefit from investment incentives.

A uniform system may help local enterprises compete, as well as discouraging investments from overseas companies, which account for more than half of China's exports, according to Macquarie Securities Ltd. economist Paul Cavey.

"Because the trade surplus is monumentally large, they don't really care if they deter some foreign investment,'' said Cavey. "The trade surplus is now their biggest issue.'' China's legislature is scheduled to pass a law in March to create a uniform tax system, said Wang.

The law will also cut the corporate income tax rate to 25 % from 33 %. Overseas companies often pay less than 15 %, as they operate in special economic zones designed to attract investment. Still, the uniform tax rate may hurt manufacturers in general, rather than just overseas businesses, as they mostly pay a tax rate of less than 25%, said Cavey. This would add to pressure on manufacturers in the country, which are already facing rising land and labor costs, he added. The changes could cut the government's fiscal revenue by 2.5%, based on 2006's total, said William Hess, a Beijing- based analyst at Global Insight, an economic consulting firm. China collected 554.9 billion yuan in corporate taxes last year, 27% more than a year earlier.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions