China to Lower Taxes to Boost Economy

China is expanding an income-tax break to help more companies and will speed construction of water projects, the cabinet said on Wednesday, as it boosts fiscal support for a cooling economy.

A scheme to discount corporate tax rates by a fifth will be widened to cover firms with annual taxable income of 200,000 yuan ($31,953), the State Council said in an online statement after a weekly meeting.

The concession was formerly restricted to companies with taxable income of less than 100,000 yuan.

Last year, China logged economic growth of 7.4 percent, its worst in 24 years, dragged down by a sagging housing market and a slowdown across sectors from exports to investment and manufacturing.

Many analysts expect growth in the world’s second-largest economy to fall still further this year, to around 7 percent.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza