| China to reduce tax gaps between companies |
SHANGHAI, Jan. 24 -- China's taxation regulator vows to reduce the gaps between domestic companies and overseas companies to advance its corporate income tax reform, said Wang Li, deputy director of the State Administration of Taxation.
The Standing Committee of the National People's Congress will review a company tax draft in March, Wang said.
China has conducted different tax policies on domestic and foreign companies to draw foreign investment since the early 1990s, which has been effective, Wang said.
However, since the country's entry into the World Trade Organization, a more advanced tax system is required for fairer competition between companies, Wang added.
The current income-tax policy orders domestic companies to pay income tax at a nominal rate of 33 percent, while foreign companies need to pay an average of 15 percent.
Some domestic companies even passed off as foreign companies so they could enjoy the lower rate, Wang said.
The country's tax revenue reached more than 3.76 trillion yuan (US$470 billion) last year, 677 billion yuan more than a year earlier, the administration said.
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