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5 - Corporate Income Tax in China

Published online by Cambridge University Press:  22 September 2022

Shuanglin Lin
Affiliation:
Peking University, Beijing
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Summary

Chapter 5 studies the corporate income tax. Revenue from corporate income tax has been increasing in China which is at odds with the worldwide trend. Unlike the individual income tax, the corporate income tax accounted for a large proportion of total tax revenue in China. The reasons for this unusual phenomenon are thoroughly analyzed in this chapter. It also examines corporate income taxes from various industries and from various enterprises such as SOEs, domestic private enterprises and foreign enterprises, and compares the corporate income taxes in various provinces. Policy suggestions are provided at the end of this chapter, such as reducing the corporate income tax to stimulate investment and economic growth and eliminating excessive preferential corporate income tax policies to put all enterprises on equal ground for competition.

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Chapter
Information
China's Public Finance
Reforms, Challenges, and Options
, pp. 127 - 162
Publisher: Cambridge University Press
Print publication year: 2022

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