Want China Times
China’s State Council or cabinet has issued a notification on preferential tax polices
for foreign and domestic investments. In the notification, known as Notice No. 25, the authorities confirm that all preferential treatments local governments agreed to grant enterprises in the past will continue to be valid.
The latest governmental order saves foreign and Taiwanese businesses operating in China from the immediate impact of an earlier notification — No. 62 — that required all preferential tax policies to be “cleaned up.”
While recognizing the release of the circular, we would like to suggest to the Taiwanese businesses affected that they face up to China’s changing investment climate and take action to deal with it.
Notice No. 25 stipulates that preferential policies should be implemented as scheduled, that the incentives included in deals between local governments and enterprises continue to be in effect, and that planned preferential tax policies will only be allowed to be carried out after they are approved by the State Council. [FULL STORY]