China outlines plans for tax reforms in 2006
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
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