New Enterprise Income Tax Law Promulgated in China

Earlier this month China enacted a new corporate income tax law that may have significant repercussions on Israeli companies and investors that enter or continue to operate in China. In light of the fast-growing interest and presence of Israeli companies and investors in the Chinese market, and considering Morrison & Foerster’s extensive experience representing Israeli and Chinese companies in cross-border business transactions, joint ventures and investments, we wanted to provide our Israeli clients with the following summary of this new and important development.