China’s Effective Tax Rate is Still Much Lower Than the US (The Asset)

The recent reduction in the US corporate tax rates from 35% to 20% by the Trump administration is unlikely to see Chinese corporates leaving for the US. China’s effective tax rate, including value-added tax (VAT), is only 17%, much lower than the US corporate tax alone. In addition, most Chinese local governments still give implicit subsidies to corporates who are large investors to compensate for tax losses. READ MORE

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