Plans for tax reform approved by the chinese State Council

China State Council has approved plans to reform the system of income distribution which will lead to changes to taxation of state-owned enterprises and property speculators. The plans also urge the relevant departments to take measures, including tax and social security insurance measures, to narrow the gap between the rich and poor, in particular the urban rich and rural poor.

According to the plans, the profit contribution rate of the state-owned enterprises to the government will be increased by 5% and the taxation of the transfer of land will be enhanced. It is expected that the different departments such as the Ministry of Finance, the Ministry of Social Security and SAT will develop concrete measures to implement the plans.