According to the Ministry of Finance, the State Council lately approved the adjustment plan for a unified income tax policy for domestic and foreign-funded companies.
Experts say that over a period of time after China's WTO entry five Chinese economic special zones will be allowed to make their own decisions whether to give foreign-funded firms preferential treatment in taxation, but this will not last long. China will have to use 3 years to unify its income tax.
A compromised proposal of a unified 25 percent has been basically reached, Xinhua reported.
(People's Daily 05/29/2001)
