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China to give domestic, foreign firms equal tax treatment(12/24/03)

   China's minister of finance has said that the country will provide equal tax treatment for domestic and foreign-funded enterprises as it speeds up tax reform.

    Foreign-funded companies now enjoy more preferential tax policies than domestic companies, though nominal income tax was the same for both, Minister of Finance Jin Renqing told a national meeting in Beijing on dec.24.

    A heavier burden for domestic enterprises is neither conducive to fair play nor in line with the practices of the World Trade Organization, at a time when China's reform and opening-up drive was entering a new stage, he said.

    "The current income tax rules for enterprises should be reformed," Jin noted, emphasizing that unified tax rules and policies should be enacted for domestic and foreign-funded enterprises while tax rates were appropriately adjusted.


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