March 03, 2000 | By Keith Martin in Washington, DC
China is expected to drop special tax incentives for foreign investment when it is admitted into the World Trade Organization. Foreign joint ventures usually qualify for an income tax holiday for the first two years and a reduced 15% income tax rate for the next three years. There is no timetable for dropping these incentives, but a new unified tax code is working its way through the government and is expected to take effect in 2001. Existing investments are expected to be grandfathered.