January 2008

Two Blackman Kallick Articles on the New, Higher Chinese Income Tax Published

China made sweeping changes to its tax laws, which became effective January 1, 2008. The tax rate has increased to 25%, and various incentives routinely granted to foreign businesses are gone. How will this affect your business operations in China? Read an analysis of the new laws in the latest issue of Taxes—The Tax Magazine. "New Chinese Law Means Higher Tax to Do Business in China," authored 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 foreign persons doing business in China; key provisions of the old and new laws; and significant U.S. income tax considerations. To read this article, click here.

For a synopsis of this article, see Paul C. Lau's article, "Higher Chinese Income Tax Starting in 2008," published online by the Illinois CPA Society. Effective January 1, 2008, new Chinese tax laws substantially increase the Chinese income tax burden of foreign persons doing business in China. This effectively changes China from a low-tax jurisdiction to a relatively high-tax jurisdiction. To read this article, click here.