20 Chinese will pay income tax

Press, 4 September 1980, Page 7

20 Chinese will pay income tax

NZPA-Reiiter Peking Draft bills were placed before China’s' Parliament yesterday' "to introduce the country’sfirst systematic taxation system, including a personal income tax - that, only about 20 Chinese out of a population of 1000. million may have to pay. , The bills set rates of. 33 per. cent on profits from joint, ventures with Chinese land foreign investment and up to 45 per cent for individuals. . ' Peng Zhen,. vice-chairman oi* the standing committee of the National People’s Congress,’ said that all individuals, including members of the growing foreign commuriitv, earning over 800 yuan ($547) a month would be eligible.for tax on a graduated'scale from 5 to 45 per cent.' He. admitted that only about 20 Chinese in the world’s most populous nation would come within the tax range. They were mainly artists and scientists, he added. Other legislation presented to the People’s Congress yesterday included a marriage law which backs up China’ vigorous birth-con-trol programme by raising the legal marriage age for men to 22 from 20 and for women to 20 from 18. Also introduced was a constitutional amendment eliminating the right to citizens to paste up wall posters, a form of expression favoured by the late Chairman Mao Tse-tung and activists in the now dormant Democracy Movement. Gu Ming, a deputy director of the People’s Congress legislative affairs commission, said the tax rate for joint ventures with Chinese and for foreign, investment

would be 30 per cent,’ with an additiorial 10 per cent local surtax on the assessed rate to bring the total tp 33 percent.’ ' ~ He said that the law mainly involved joint ventures to be set up within China’s boundaries. The rate on joint ventures exploiting petroleum, natural gas, and other resources would be fixed separately, Mr Gu said. Preferential tax. treatment would be granted to newlyestablished .joint ventures over a . 10-year period, with a further 10-year extension possible, Mr Gu said. Tax breaks were also available if income was reinvested in China." Diplomatic sources said that the 33 per cent joint venture tax was higher than expected. The Chinese said that it was 20 per cent lower than in developed countries and slightly lower than in most, developing nations. On personal income tax, Mr Gu said that foreigners staying less than one year in China would be assessed only on what they had earned within the country. Anyone staying more than one year would be assessed o n world-wide income. Among other legislation put forward, a new nationalities law prohibiting Chinese from holding dual nationality appeared to be largely a foreign policy move which is expected to be welcomed in South-East Asia. South-East Asian countries with large Chinese minorities have traditionally regarded the loyalties of their Chinese populations with suspicion. , The new marriage law stipulates that husbands and wives are duty bound to practise family planning.