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Law & Regulation

Guangdong deals with lack of tax money

Authorities in Guangdong are chasing down millions of dollars in unpaid taxes. The top 100 taxpayers in the booming province paid income taxes of US$28 million in 2005, 1.1% of the total amount collected, according to a state media report. Anybody earning more than US$200 per month has to pay income tax with a base rate of 5%. People earning more than US$12,500 pay 45%. Many high-income earners are trying to wiggle out of paying taxes; the provincial officials and economists said loopholes have made it easy for them to pay only minimal taxes.

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