China to remove preferential tax treatment of foreign firms
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The Ministry of Finance announced yesterday that the foreign companies will be taxed individual urban maintenance and construction tax and education surtax as of December 1st, a move that signals an end to preferential tax treatment of foreign companies.
"A preferential tax policy for foreign firms, which has played an important role in introducing foreign capital over the past years, has to be changed to end up the deepening unfairness between domestic and foreign companies," said an official at the Ministry of Finance.
Experts say the new tax policy won't envy extra tax burden on foreign companies, because the government has adopted an active fiscal policy that included a series of tax cuts since last year to combat the financial crisis.
The official also stated that the taxation won't take a toll on attracting foreign capital, because of China's large market, abundant human resources and sounder economic climate still give China strong advantage.
China's business press carried the story above on Friday. China.org.cn has not checked the stories and does not vouch for their accuracy.
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