023 Extension of the range out of the Controlled Foreign Companies Law
Since the Tax Reform in 2010, the tax rate on which the reduced tax rate is based has been brought down from 25% to 20%. This basic rate is called trigger tax rate. For example, Chinese corporation tax rate has exceeded trigger tax rate, so that the CFC laws has become no more effective against corporations founded in China. Besides, the rate of share within which it is not subjected to the CFC law has been extended from 5% to 10%. Because of this, we believe that foreign investment to China is going to be accelerated. This reform is going to be effective from the accounting year beginning after April 1, 2002.
