China outlines plans for tax reforms in 2006
(Xinhua)
Updated: 2006-01-08 19:22

China will spare no effort to advance its tax reform this year, mulling over efforts to press ahead with reform of resources tax, and improve its proposal on unifying its corporate income tax for both domestic and overseas firms, its tax authorities said Sunday.

Xie Xuren, director of the State Administration of Taxation, said that China will also move ahead to revise existing tax on use of farmland for nonagricultural purpose, readjust the administrative mechanism of contract tax, formulate programs to introduce pro-business transformation of value-added tax nationwide while doing a good job in experimenting with the transformation of the tax in northeast China.

Addressing a national conference on taxation, the director said China will continue to implement its improved policies on export tax rebates, the revised individual income tax law, and the policy changes to increase energy and resources efficiency.

He pledged to carry forward new policies to readjust tax rebate rates on some energy-intensive and polluting goods for exports to discourage exports, and tax policies to inspire technological upgrading of enterprises, and study ways of how to encourage independent innovation.

Xie said China will go on carrying out policies to benefit farmers and agriculture and rural development as part of the measures to narrow the widening gap between the rural and urban areas.

Meanwhile, China will step up the management of international tax and collection of tax involving overseas-funded firms, improve tax regulations concerning multinationals to prevent tax evasion, he said.

The country will also work to improve tax policies to encourage the restructuring of China's cultural sector, including preferential tax policies for moral building for minors for such products as selected computer game products, and pre-tax deduction policies for charity donations, said the director.