China: Tax Management

From my friend and colleague Mr. Tony Tsai, Chief Executive Officer – BHG Retail Innovation Institute & Executive VP Operations – The BJ Hualian Hypermarket Co.:

On reduction of taxes to stimulate various sectors:

"An official at the State Administration of Taxation says that the State Administration of Taxation will issue a new tax policy to promote development of venture capital enterprises. The Chinese government will offer preferential tax treatment to venture capital enterprises in corporate income tax."

"The National Development and Reform Commission (NDRC) holds a symposium for the development situation of China's IT industry in Hefei, the capital of Anhui province. Representatives from the Shanghai Municipal Development and Reform Commission suggest that the central government reduce value-added tax and business tax for the IT industry. Representatives from the Jiangsu Provincial Development and Reform Commission suggest the central government issue detailed rules on the implementation of a stimulus plan for the IT industry as quickly as possible."

"Coface, the leading international credit insurance and credit management services group, recently published the results of the survey of corporate credit risk management among Chinese enterprises for 2008. The survey shows that the financial crisis has led to a marked deterioration in payment behavior by buyers interested in China. More than 90% of respondents have revealed problems with overdue payments. In 2008, there was a trend towards longer payment delays. The survey shows that more than half of the respondents regard financial difficulties as the main reason for nonpayment, while poor or inexperienced management is the second contributing factor for 25% of them."

"According to yesterday's media reports, the National Copyright Administration will collect a music copyright fee of RMB2.5 per minute from TV stations, and RMB0.3 per minute from radio stations. An official from the National Copyright Administration says today (April 15) that the music copyright fees for TV or radio stations have not yet been set."