BEIJING - China's Legislature may next year approve a proposed law cutting the corporate tax rate to below 30 per cent, the China Securities Journal says.
The report cites Shi Yaobin, head of the Ministry of Finance's tax department.
A draft of the proposed law, to be submitted to the
legislature in August, says domestic and foreign companies will be taxed at the same rate.
Domestic companies in China pay 33 per cent corporate tax while overseas companies pay a rate of 30 per cent.
Overseas companies in special economic zones can enjoy a 15 per cent preferential rate, while those in economic and technology development zones and some coastal regions can have their tax rate reduced to 24 per cent.
China may give beneficiaries of preferential tax policies a grace period of between five and seven years before imposing new rules, the paper says.
The law will also extend preferential policies based on type of business, rather than where a firm operates.
- BLOOMBERG
