Preferential treatment discussed - yet again
It is that time of the year again, just shortly before the National People's Congress assembles for its annual meeting in March and the preferential tax treatment for foreign companies is yet again on the agenda, writes the Bloomberg (and many others).
Since I started to look at the Chinese political agenda unifying the tax regime as been on that agenda, so there is not real surprise here. This time even the proposal suggest is might only be due in 2006.
Foreign companies have been profiting greatly from this exception, but Chinese enterprises even more. After China started to open up for foreign investments, from the beginning of the 1980s, Chinese companies have been establishing 'headquarters' in Hong Kong with the main purpose of using the same preferential treatment.
Foreign companies never really had to lobby against changes in the tax regime in the past, since domestic opposition was fierce enough. Maybe I'm becoming an old cynic: I do not expect anything to happen soon.



0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home