Jan. 3, 2006 (China Knowledge) – Joint ventures and wholly foreign-owned firms in China must now pay land-use tax starting from Jan. 1, ending years of special corporate tax breaks for overseas firms.

Both local and overseas developers will pay equal land-use or property tax rate, which is now triple the old rate that was set in 1988. A source from the Legislative Affairs Office of the State Council said that the latest revision of land-use tax regulations is expected to improve control and planning for development and re-development of land.

 

A new corporate tax structure, under which both foreign and domestic firms taxed at the same rate, is also expected to be implemented later this year.