Does China have a unified income tax system for all businesses?
Now, China has two distinct tax regimes, one for foreign invested enterprises (FIEs) and the other for domestic enterprises. On paper, FIEs have had a better deal from the tax system, enjoying a tax rate of roughly half of what domestic companies pay and enjoy substantial incentives before tax is even payable. More attractive incentive packages have been on offer to FIEs established in the five special economic zones (SEZs) and 49 other development zones, most of which are in the fast-growing coastal regions.
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