Unified tax rate likely to be under 30%

Shi Yaobin, director of the Tax Policy Department at the Ministry of Finance, said a unified tax law expected to come into effect in 2008 would likely set corporate income tax below 30%, the Shanghai Securities News reported. Overseas firms currently pay an average of 15% in income tax due to various concessions, compared with 33% for domestic companies. Shi said the draft would be submitted to the National People's Congress Standing Committee for deliberation in August, but the proposed unified rate has not been finalized.