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Nation to keep preferential tax policies for foreign banks(Xinhua)Updated: 2006-11-16 15:33 After the full openness of China's banking sector, China will continue to give tax preferential treatment to foreign-funded banks that have been locally incorporated. Song Dahan, deputy director of the Legislative Affairs Office of China's State Council, made the remark here Thursday when responding a question from the press. "Those foreign-funded banks that have been locally incorporated and registered in China are still foreign-funded banks, so they will enjoy preferential treatment in income tax according to Chinese law," he said. According to new regulations released by the State Council Wednesday, China will fully open its renminbi business to those foreign-funded banks registered in China and incorporated locally before December 11 in accordance with its commitment to the World Trade Organization. The Chinese government is thinking about the reform on current income tax system that differentiates Chinese and foreign-funded companies, he said. At the same press conference, Wang Zhaoxing, assistant chairman of the China Banking Regulatory Commission, suggested that after foreign-funded banks fully receive national treatment in China, they should share the same taxation policy with domestic banks in taxation. "Only in this way can the principle of fair competition be realized," Wang said. (For more biz stories, please visit Industry Updates)
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