CHINA

Private Company Tax Policy Reportedly Revamped: In an effort to encourage the development of private enterprises, China has decided to revamp its income tax policy, the official China Daily reported. The new policy takes effect Jan. 1 and is meant to help private businesses better compete with state-owned and collectively owned companies, the newspaper said. It will give private companies more preferential tax treatment than they previously enjoyed, it said. The state will not levy income taxes on profits private companies reinvest in industry, the report said. Entrepreneurs who put their money into energy resources, communications or in China’s national minority areas will enjoy a 50% income tax deduction for five years. As of June 30, there were 110,700 private businesses and 14.1 million self-employed people in China.