Chinanews, Shanghai, Mar. 13 – After China adopted the unified corporate tax rate scheme, China would recheck the identities of some foreign companies, said Chinese Minister of Commerce Bo Xilai on Sunday, the Shanghai Securities Journal reported.

 

He made the statement when asked whether the phenomenon of “fake foreign-funded companies” could be changed in future.

 

He pointed out that, while China’s opening-up is moving on in a generally sound and healthy way, some minor problems (reference is to the phenomenon of fake foreign-funded companies) do still exist. Faced with this problem, the identities of some foreign companies need to be re-examined in order to improve China’s economic system, he said.

 

The fake foreign companies refer to those domestic companies that make their registration abroad in order to enjoy the tax preference that Chinese government offers to foreign companies before China has adopted the unified corporate tax rate.

 

Although the unified corporate tax rate will bring different impacts on different companies, it is in the interest of all companies involved in creating a fair and open market environment, said the minister.

 

The central government and various departments have given full consideration to the unified tax rate scheme before implementing it. On the whole, the new scheme will be beneficial to the overall development of the Chinese economy and also serve the interests of the enterprises. In fact, it will somewhat cost the Chinese government to implement the new policy in its process of creating a fair market environment. On the whole, the central government does not aim at collecting more money from certain companies. Instead, it tries to make innovations in the market system and to set up a better market environment, the minister said.