Goldman-Tax unification slightly negative to select offshore China listcos

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Foreign-owned entities/JVs to pay city construction/education tax
The State Council and Ministry of Finance announced that starting Dec 1,
2010, foreign companies and JVs will start to pay city construction tax and
education tax. While domestic companies have long been paying these two
taxes, foreign companies had been exempt as a preferential policy to
encourage foreign investment. The two taxes are both charged as a % of
VAT, business tax and consumption tax (‘taxation base’). City construction
tax will be 1-7% of the taxation base (7% in the city; 5% in the townships; 1%
elsewhere), and education tax will be 2% of the taxation base......


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关键词：unification negative offshore Slightly Goldman investment companies education business domestic