The State Administration of Taxation has issued a circular to
increase supervision of projects contracted by foreign companies in
China.
The taxation management over foreign-funded companies is still
quite weak in China, and tax evasion is especially serious in
projects contracted by foreign companies, the circular said.
The circular asked local taxation departments to collect more
information and inform foreign enterprises about Chinese taxation
policies and laws.
Local departments should go all-out to remove loopholes and
collect overdue taxes from foreign-contracted projects, the
circular said.
More contracted projects are now being launched by overseas
companies in China, especially in fields of Olympic stadium
construction, transport and energy.
(Xinhua News Agency July 20, 2006)
