Beijing plans to force large state-owned enterprises to pay dividends to the state after the 169 SOEs under the State-owned Assets Supervision and Administration Commission posted a US$74.5 billion net profit in 2005, the South China Morning Post reported. Since tax reforms were implemented in 1994, no government entity has received any dividends from the state enterprises under Sasac and the same is mostly true for state firms administered by local governments. A Sasac spokesman said the Ministry of Finance had completed a plan for state-owned profit allocation and Sasac was in the process of preparing a similar plan for the companies under its control. No timeline was given, and it was not clear which government agency would collect the dividend.
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