Referring to a dispatch which apin the "North-China Daily News" on June 24 which stated that ihe U. S. Senate had approved a provision for the cancellation of the preferential tax rates previously enjoyed by China Trade Companies, Miss A. Viola Smith, Registrar, China Trade Act, announced yesterday that the U. S. ut of Commerce has stated that the provisions by which a China Trade Act corporation was privileged to declare a special tax saving dividend in lieu of payment of tax have not been altered.
This decision will no doubt relieve the anxiety felt by many local China Trade Act corporations. The new General Revenue Tax Bill provides that the 1938 flat rate of 16% per cent. for Normal Tax calculation applicable to China Trade Act corpora-tons has been abolished, and in its stead a new rate of 12% to 16 per cent, for incomes less than US$25,000 per annum, and 18 per cent, for in-Comes above that figure, has been established.
The new revenue bill does not cancel nor affect the special credit Which China Trade Act corporations may claim and declare by specíal tax saving dividend. epee
Text read from the printed page and cleaned; old type leaves the occasional error.