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China Raises Income Tax to 25%

Effective Jan. 1, 2008, China has increased its income tax rate to 25%, and incentives routinely granted to foreign businesses are gone. This effectively changes China from a low-tax to a relatively high-tax jurisdiction.

How will this tax law change affect your business operations in China? Read an analysis of the new laws in the April 2008 issue of Taxes—The Tax Magazine. "New Chinese Law Means Higher Tax to Do Business in China," by Paul C. Lau and Sandy Soltis of Blackman Kallick and Gary Sauder of Hilco Trading, examines the effect the new laws will have on business entities used by foreigners doing business in China; key provisions of the old and new laws; and significant U.S. income tax considerations. 

For a synopsis of this information, read Paul C. Lau’s article, "Higher Chinese Income Tax Starting in 2008," published online by the Illinois CPA Society.  

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.