China to unify corporate income tax rates

时间：2006-12-25 02:49:35

（单词翻译:单击）


China's top legislator, Wu Bangguo presides at the 25th session of the 10th Standing1 Committee of the National People's Congress (NPC) in Beijing, Dec. 24, 2006.
 
Dec. 24 - China's top legislature began discussing Sunday a new law on corporate2 income tax that will unify3 income tax rates for domestic and foreign companies at 25 percent.

 

The draft law was tabled at the 25th session of the 10th Standing Committee of the National People's Congress (NPC), which convenes4 from Dec. 24 to 29.

 

A unified5 tax code will create a taxation6 environment that favors fair competition among all ventures registered in China, said Finance Minister Jin Renqing at the meeting.

 

Two different corporate income tax regimes were established for domestic companies in 1991 and overseas companies in 1993 with overseas companies enjoying a lower tax burden. In recent years, this system has been hotly debated.

 

Chinese companies currently pay income tax at a nominal7 rate of 33 percent, while their foreign counterparts -- who benefit from tax waivers and incentives8 to encourage investment in China -- payan average of 15 percent.

 

In fact, when all kinds of tax breaks and incentives are taken into account at both national and local level, domestic companies pay around 24 percent and overseas-funded businesses 14 percent. Many people believe that the gap handicaps domestic players who have been facing tougher competition since China joined the World Trade Organization in 2001.

 

"As the current tax system is overly complicated, we need to unify corporate income tax rates," said Jin.

 

The minister said some companies take advantage of loopholes in the system to evade9 tax.

 

Legislators said the 25-percent tax rate compares favorably with other countries and regions and with international rates.

 

According to the draft law, income tax for small businesses with low profits will be limited to 20 percent. Depending on what region and what industry they are active in, small businesses now pay either 18 percent or 27 percent.

 

To put domestic businesses on an equal footing with their foreign counterparts, the bill authorizes10 domestic companies to deduct11 employees' full salaries from taxable income as foreign companies do. Up until now, domestic companies could only deduct a maximum of 1,600 yuan (200 U.S. dollars) per person.

 

The two-year full tax exemption12 and three-year partial tax exemption for foreign manufacturers will be rescinded13 and export-oriented foreign-funded businesses will no longer enjoy a special fifty percent tax break.

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1 standing 2hCzgo     
n.持续，地位；adj.永久的，不动的，直立的，不流动的
参考例句：
  • After the earthquake only a few houses were left standing.地震过后只有几幢房屋还立着。
  • They're standing out against any change in the law.他们坚决反对对法律做任何修改。
2 corporate 7olzl     
adj.共同的，全体的；公司的，企业的
参考例句：
  • This is our corporate responsibility.这是我们共同的责任。
  • His corporate's life will be as short as a rabbit's tail.他的公司的寿命是兔子尾巴长不了。
3 unify okOwO     
vt.使联合，统一；使相同，使一致
参考例句：
  • How can we unify such scattered islands into a nation?我们怎么才能把如此分散的岛屿统一成一个国家呢？
  • It is difficult to imagine how the North and South could ever agree on a formula to unify the divided peninsula.很难想象南北双方在统一半岛的方案上究竟怎样才能达成一致。
4 convenes dc7875a8680176aa422d93157c7b35a5     
召开( convene的第三人称单数 )； 召集； （为正式会议而）聚集； 集合
参考例句：
  • The Premier convenes and presides over the executive meetings and plenary meetings of the State Council. 总理召集和主持国务院常务会议和国务院全体会议。 来自汉英非文学 - 中国宪法
  • Chinese woman tenth the National People Congress convenes grandly today in Beijing. 中国妇女第十次全国代表大会今天在北京隆重召开。
5 unified 40b03ccf3c2da88cc503272d1de3441c     
(unify 的过去式和过去分词)； 统一的； 统一标准的； 一元化的
参考例句：
  • The teacher unified the answer of her pupil with hers. 老师核对了学生的答案。
  • The First Emperor of Qin unified China in 221 B.C. 秦始皇于公元前221年统一中国。
6 taxation tqVwP     
n.征税，税收，税金
参考例句：
  • He made a number of simplifications in the taxation system.他在税制上作了一些简化。
  • The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。
7 nominal Y0Tyt     
adj.名义上的；(金额、租金)微不足道的
参考例句：
  • The king was only the nominal head of the state. 国王只是这个国家名义上的元首。
  • The charge of the box lunch was nominal.午餐盒饭收费很少。
8 incentives 884481806a10ef3017726acf079e8fa7     
激励某人做某事的事物( incentive的名词复数 )； 刺激； 诱因； 动机
参考例句：
  • tax incentives to encourage savings 鼓励储蓄的税收措施
  • Furthermore, subsidies provide incentives only for investments in equipment. 更有甚者，提供津贴仅是为鼓励增添设备的投资。 来自英汉非文学 - 环境法 - 环境法
9 evade evade     
vt.逃避，回避；避开，躲避
参考例句：
  • He tried to evade the embarrassing question.他企图回避这令人难堪的问题。
  • You are in charge of the job.How could you evade the issue?你是负责人，你怎么能对这个问题不置可否？
10 authorizes 716083de28a1fe3e0ba0233e695bce8c     
授权，批准，委托( authorize的名词复数 )
参考例句：
  • The dictionary authorizes the two spellings 'traveler' and 'traveller'. 字典裁定traveler和traveller两种拼法都对。
  • The dictionary authorizes the two spellings "honor" and "honour.". 字典裁定 honor 及 honour 两种拼法均可。
11 deduct pxfx7     
vt.扣除，减去
参考例句：
  • You can deduct the twenty - five cents out of my allowance.你可在我的零用钱里扣去二角五分钱。
  • On condition of your signing this contract,I will deduct a percentage.如果你在这份合同上签字，我就会给你减免一个百分比。
12 exemption 3muxo     
n.豁免，免税额，免除
参考例句：
  • You may be able to apply for exemption from local taxes.你可能符合资格申请免除地方税。
  • These goods are subject to exemption from tax.这些货物可以免税。
13 rescinded af55efaa19b682d01a73836890477058     
v.废除，取消( rescind的过去式和过去分词 )
参考例句：
  • Rescinded civil acts shall be null and void from the very beginning. 被撤销的民事行为从行为开始起无效。 来自互联网
  • They accepted his advice and rescinded the original plan. 他们听从了他的劝告，撤销了原计划。 来自互联网

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