One tax regime for domestic and overseas-funded firms
The same set of rules and rates will be applicable to domestic and overseas-funded firms from 2007 onwards.
Until now, domestic companies were subject to a 33% corporate income tax rate. Profits of foreign-funded firms wered taxed at maximum rate of 15%. The new unified tax rate will be 24 or 25%.
For foreign-funded firms already active in China a five-year transition period is introduced. The new regime is directly applicable to companies established in China after 31st of December 2006. Read more about it in China Daily.
