New Taxation Law Will Not Shackle GZ's Appeal to Foreign Nvestors

Source: english.gz.gov.cn

In accordance with the Enterprise Income Tax of the People's Republic of China and its implementation regulations which have taken effect as of January 1st, 2008, the same tax rates apply to both domestic and foreign enterprises.

As Yang Weiwen, Deputy Director of Guangzhou State Taxation Bureau, put it in a press conference sponsored by Guangzhou Municipal Government, 90% of the foreign-funded companies have been subject to 33% and 27% foreign tax rate before the law came into effect. In other words, these foreign companies have received preferential treatment in accordance with the 25% uniform tax rate as provided by the new taxation law. It goes on, "the enforcement of the new law will have a positive impact on the efforts of Guangzhou to attract foreign investment."

According to him, the industry-oriented new taxation preferential policy will help give play to the function of taxes to regulate the economy, flowing foreign investment into places consistent with the national industry development requirements.

[More Guangzhou News]

Editor: Carrot Chan