A Few Last Minute Changes

This is amazing. I didn't see this one coming in the 11th hour.

China's State Council, or the cabinet, publicized over the weekend policies aimed at cushioning the impact of enforcing the unified corporate income tax law. The new law, to take effect on Jan. 1, 2008, will replace two earlier regulations that date back more than a decade and unify income tax rates for domestic and foreign-funded companies at 25 percent.

The cabinet said that the new law would be phased in five years. Companies that currently face an income tax of 15 percent will pay 18 percent in 2008, 20 percent in 2009, 22 percent in 2010, 24 percent in 2011 and 25 percent from 2012.

Companies that are exempt from taxes or have concessional rates will retain their preferences until the original expiration date. Those that don't show the level of profit can retain their benefits in 2008.