Foreign tax Super national treatment end environmental giant investment interest does not change

BEIJING, December 1 (Xinhua) Since December 1, China will impose urban maintenance and construction taxes and education fees on foreign-funded enterprises, foreign enterprises and foreign individuals.　　Since the reform and opening-up in China, foreign-funded enterprises have been enjoying the tax "supranational treatment" to this end. Many foreign-funded enterprises complained that the New Deal city maintenance and construction tax and education fees attached, is China to raise urban and rural maintenance of construction funds and expand local education funding sources set up a special tax and government funds.　　These two taxes have been set up since 1985 and 1986, and have been levied only on Chinese citizens and domestic enterprises.　　The Ministry of Finance and the State administration of taxation said that the unification of the urban maintenance and construction tax and the education fee of the foreign-funded enterprises is the final clearance of the "different tax system" of the foreign-funded enterprises after the unification of the foreign-funded enterprises ' VAT, consumption tax, business tax, Enterprise income tax, urban land use tax, travel tax, farmland occupation tax and "It is international practice to impose a unified tax system on all enterprises."　　"Although many foreign-funded companies have complained about the new deal," said Thomas, the Danish industrial giant Danfoss, the newly-owned Chinese president, says that foreign companies that entered China earlier have received a lot of tax breaks, and that it is now on a platform to compete equally with Chinese companies. "The impact on large enterprises is not big," Liu Shangxi, deputy director of Treasury Finance Department, said that the levy of urban construction tax and education fees would not significantly increase the tax burden on foreign companies.　　These two kinds of taxes belong to the additional tax, the tax subject is not the entire profit and the income of the enterprise, but is based on the VAT, consumption tax and the tax amount actually paid by the business tax. Taking urban construction tax as an example, according to the location of taxpayers for urban areas, county (town) and other regions, according to the 7%, 5% and 1% tax rates levied, the additional uniform education fees levied at 3%, the increase in the tax burden is not heavy, for foreign-funded enterprises, especially large companies have little impact　　"Liu Shangxi said. "Ten years ago, when foreign companies entered China, they saw the lower cost of production, and today they entered China for huge market demand."　　"The increase in taxes will not affect Danfoss ' interest in investing in China," Thomas said. China is now the world's third-largest market for Danfoss.　　The European Company, which specializes in renewable energy development and technology promotion, is preparing to seize the market opportunity of developing green industry in China, accelerate the construction of research and development center and focus on the western region's sales center, hoping to develop China into its largest market in the world. The same view also holds the world's largest environmental group, France Veolia Environmental group, President of the Asia region Mujo.　　The President, who came to Beijing alone in 1994 to form a Veolia China company, has expanded its business to more than 30 cities in China over the past 16 years, reaching a total of 25000 employees. Mujo said that Veolia's investment strategy for China will not change as a result of tax policy changes.　　At present, Veolia Wastewater treatment, solid waste treatment, energy and transportation are the four pillars of the business has entered the Chinese market. "China proposed to 2020 Unit gDP emissions are 40% to 45% lower than in 2005, with market space on the one hand and more competition from Chinese peers on the other, and we are confident that by increasing investment the share of Chinese market revenue from current 2.5% to 10% will increase.　　"Mujo said.　　"To improve the structure of foreign investment," said Liu Ke, a member of the Economic Committee of the CPPCC, that the abolition of foreign tax concessions is to establish a more fair competition tax mechanism and investment environment, but also to improve China's foreign investment structure.　　In April of this year, the State Council issued a number of views on further work on the use of foreign capital as a guideline for China's use of foreign capital in the coming years, the document stressed that the future will be "more focused on improving the quality and level of foreign capital utilization". Government data show that China has now become the first to absorb international capital for 18 consecutive years, and the world's second largest international capital. In the first 10 months of this year, China has absorbed 82.003 billion U.S. dollars in foreign investment, achieving positive growth for 15 consecutive months. The ministry expects China to attract foreign investment for the first 100 billion dollars this year.