Assessments

A policy change that will bring the tax rates on foreign firms in line with taxes on domestic companies will help China restructure its economy but will add to rising costs for outsiders operating there.

Foreigners Face Tax Increase in China

China on Dec. 1 will increase taxes on foreign companies by doing away with an exemption to two taxes. While it will not scare foreign businesses away, the increase will add to the costs of doing business in China – a trend which, combined with political factors, could eventually create major challenges for foreign firms. 

Summary

A policy change that will bring the tax rates on foreign firms in line with taxes on domestic companies will help China restructure its economy but will add to rising costs for outsiders operating there.  

ASSESSMENTS

Foreigners Face Tax Increase in China

Summary

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