The end of foreign nationals treatment experts said the impact on foreign companies is not large
Source: Internet
Author: User
KeywordsSmall foreign companies experts say
Xinhua News agency reporter Han Jie Shang Xu Li from December 1 onwards, China will be the territory of foreign-funded enterprises, foreign enterprises and foreign individuals levy urban maintenance and construction tax and education fees, which marks the reform and opening-up in China, foreign-owned enterprises have been enjoying the tax "supranational treatment" announced the end. The tax of urban maintenance and construction and the supplementary of education fee are the special tax and government funds for raising urban and rural maintenance construction funds and expanding local education funds. These two taxes have been set up since 1985 and 1986, and have been levied only on Chinese citizens and domestic enterprises. Break the last of the "tax system", said the Ministry of Finance and the State administration of taxation, to unify the urban maintenance and construction tax and the education fee of the foreign-funded enterprises in China, after the unification of the foreign-funded enterprises value-added tax, consumption tax, business tax, Enterprise income tax, urban land use tax, travel tax, farmland occupation tax and property tax, Breaking the "tax system" of foreign-owned enterprises in the last pass. "A unified tax system for all enterprises is an international practice, and it is also a fair competition in China to establish a market economy, the performance of mature." "Although many foreign companies around the country complained about the new deal, but Thomas, the Danish industrial giant Danfoss, the newly-elected Chinese president, believes 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," he said. Liu Shangxi, deputy director of the Treasury 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. The impact on foreign companies is not very "urban construction tax, for example, according to the taxpayer's location for the urban area, county (town) and other regions, according to 7%, 5% and 1% tax rates levied, the education costs of the additional uniform by 3% per cent levy, the increase in the tax burden is not heavy, for foreign-funded enterprises, especially large companies have little impact. "Liu Shangxi said. Some foreign-funded enterprises said that for a country to attract foreign investment, tax policy is important, but more important is the investment environment and market size. "Ten years ago, when foreign companies entered China, they saw the lower cost of production and entered China today to participate in the development opportunities and huge market demand brought about by China's rapid economic development." Thomas told reporters that the increase in taxes would not affect Danfoss ' interest in investing in China. China is now the world's third-largest market for Danfoss. The European enterprise, which specializes in renewable energy development and technology promotion, is seizing the market opportunity of developing green industry in China, speeding up the construction of research and development center and focusing on the western region's sales center, hoping to develop China into the 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 to form the Veolia China Company in 1994 has extended his business to China in the past 16 yearsMore than 30 cities, the number of employees reached 25000 people. Mujo said the investment strategy for China will not change because of changes in tax policy. At present, Veolia Wastewater treatment, solid waste treatment, energy and transportation are the four pillars of the business has entered the Chinese market. "China proposes that by 2020, the target of a 40%-45% per cent reduction in unit GDP emissions from 2005, on the one hand, gives us a broad market space and a sense of increasing competition from our Chinese peers, and we are confident that by increasing investment the share of China's market revenue from the current 2.5 Increase to 10%. "Mujo said. Liu Ke, a member of the Economic Committee of the CPPCC, told reporters that the cancellation of tax concessions for foreign investment was to establish a tax mechanism and investment environment that would be more conducive to fair competition and to improve the structure of foreign investment in China. In April this year, the State Council on further work on the use of foreign investment in a number of comments issued officially, as a period of time in China to use foreign investment guidelines, this document in the proposed will further expand the field of foreign investment, while stressing that in the future will pay more attention to improve the quality and level of foreign Government data show that our country has been the first to absorb international capital in the developing countries for 18 consecutive years, and the second place in the world to absorb international capital. In the first 10 months of this year, China's total absorption of foreign investment 82.003 billion U.S. dollars, for 15 consecutive months to achieve positive growth. The ministry expects China to attract foreign investment for the first 100 billion dollars this year.
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