Peking — New tax and contract laws with far-reaching implications for China's foreign trade are due to be passed at this year's session of the National People's Congress, starting Nov. 30.
The new income tax law follows the introduction last year of tax regulations covering joint-venture companies and individuals as China belatedly fills the yawning gaps in its commercial law. The measure is an urgent priority here, because China says it will be ready to call for bids for oil development rights by early next year. As the initial draft stands, taxes paid to China by US oil companies might not be credited against their tax liabilities in the United States.
The new contract regulations may help prevent some of the confusion and disputes that have arisen in the past when foreign companies have negotiated contracts with the Chinese.