The dual corporate income tax in China: the impact of unification

For many years, foreign funded companies in China enjoyed a relatively low tax rate and a series of preferential policies which were aimed at encouraging foreign direct investment in China. By adopting a new law in 2007, however, the National People's Congress proclaimed the end of the dual corporate-income-tax system. From 2008, the preferential tax treatment of foreign capital will be phased out. As a result, the income tax rate for domestic and foreign funded companies will be unified at the rate of 25%. This paper explores the impact of the dual corporate income tax system on both domestic and foreign funded enterprises and discusses the possible effects of the unification.dual corporate income tax, China, unification, foreign funded enterprises

Welfare Measures to Reflect Home Location Options When Transportation Systems are Modified

Transportation system improvements do not provide simply travel time savings, for a fixed trip table; they affect trip destinations, modes, times of day, and, ultimately, home and business location choices. This paper examines the welfare (or willingness-to-pay) impacts of system changes by bringing residential location choice into a three-layer nested logit model to more holistically anticipate the regional welfare impacts of various system shifts using logsum differences (which quantify changes in consumer surplus). Here, home value is a function of home price, size, and accessibility; and accessibility is a function of travel times and costs, vis-à-vis all mode and destination options. The model is applied to a sample of 60 Austin, Texas, zones to estimate home buyers’ welfare impacts across various scenarios, with different transit fares, automobile operating costs, travel times, and home prices. Results suggest that new locators’ choice probabilities for rural and suburban zones are more sensitive to changing regional access, while urban and central business zone choice probabilities are more impacted by home price shifts. Automobile costs play a more important role in residential location choices in these simulations than those of transit, as expected in a typical U.S. setting (where automobile travel dominates). When generalized costs of automobile travel are simulated to rise 20%, 40%, and 60% (throughout the region), estimated welfare impacts (using normalized differences in logit logsum measures) for the typical new home buying household (with $70,000 in annual income and 2.4 household members) are estimated to be quite negative, at -$56,000, -$99,000, and -$132,000, respectively. In contrast, when auto’s generalized costs fall everywhere (by 20%, 40%, and then 60%), welfare impacts are very positive (+$74,000,$172,500, and $320,000, respectively). Such findings are meaningful for policymakers, planners, and others when anticipating the economic impacts of evolving transportation systems, in the face of new investments, rising travel demands, distance-based tolls, self-driving vehicles, and other changes

A Note on Sub-Gaussian Random Variables

A sub-Gaussian distribution is any probability distribution that has tails bounded by a Gaussian and has a mean of zero. It is well known that the sum of independent sub-Gaussians is again sub-Gaussian. This note generalizes this result to sums of sub- Gaussians that may not be independent, under the assumption a certain conditional distribution is also sub-Gaussian. This general result is useful in the study of noise growth in (fully) homomorphic encryption schemes [CGHX19, CGGI17], and hopefully useful for other applications

Is the growth of Chinese annual tax revenues unnatural?

The rapid growth of Chinese tax revenues in the past decade is often considered “unnatural” relative to GDP growth. In this paper we investigate this seemingly unnatural growth by presenting different models of the relationship between the annual growth of tax receipts and GDP. The models show different results. We also analyze various factors related to the transition from a centrally planned economy to a market economy, in particular the biased GDP calculation method, changes of the economic structure, tax policy changes and reinforcement of the tax administration. If we eliminate the impact of these factors we find that the growth of Chinese tax revenues is not unnatural, but by and large in line with the growth of GDP

Some Comments on the Assessment of the Potential Role of Transit from China through the Baltic States

At present, with the opportunities of the previous model of world economic development exhausted, only countries building alternative models of global cooperation will have good economic prospects. In this conditions the new role of Russia, China is traced. This article examines the experience and prospects of cooperation between Beijing and the Baltic countries, including within the framework of the well-known project “One Belt — One Way”

The dual corporate income tax in China: the impact of unification

For many years, foreign funded companies in China enjoyed a relatively low tax rate and a series of preferential policies which were aimed at encouraging foreign direct investment in China. By adopting a new law in 2007, however, the National People's Congress proclaimed the end of the dual corporate-income-tax system. From 2008, the preferential tax treatment of foreign capital will be phased out. As a result, the income tax rate for domestic and foreign funded companies will be unified at the rate of 25%. This paper explores the impact of the dual corporate income tax system on both domestic and foreign funded enterprises and discusses the possible effects of the unification

Fully Homomorphic Encryption with k-bit Arithmetic Operations

We present a fully homomorphic encryption scheme continuing the line of works of Ducas and Micciancio (2015, [DM15]), Chillotti et al. (2016, [CGGI16a]; 2017, [CGGI17]; 2018, [CGGI18a]), and Gao (2018,[Gao18]). Ducas and Micciancio (2015) show that homomorphic computation of one bit operation on LWE ciphers can be done in less than a second, which is then reduced by Chillotti et al. (2016, 2017, 2018) to 13ms. According to Chillotti et al. (2018, [CGGI18b]), the cipher expansion for TFHE is still 8000. The ciphertext expansion problem was greatly reduced by Gao (2018) to 6 with private-key encryption and 20 for public key encryption. The bootstrapping in Gao (2018) is only done one bit at a time, and the bootstrapping design matches the previous two works in efficiency. Our contribution is to present a fully homomorphic encryption scheme based on these preceding schemes that generalizes the Gao (2018) scheme to perform operations on k-bit encrypted data and also removes the need for the Independence Heuristic of the Chillotti et al. papers. The amortized cost of computing k-bits at a time improves the efficiency. Operations supported include addition and multiplication modulo $2^k$, addition and multiplication in the integers as well as exponentiation, field inversion and the machine learning activation function RELU. The ciphertext expansion factor is also further improved, for $k = 4$ our scheme achieves a ciphertext expansion factor of 2.5 under secret key and 6.5 under public key. Asymptotically as k increases, our scheme achieves the optimal ciphertext expansion factor of 1 under private key encryption and 2 under public key encryption. We also introduces techniques for reducing the size of the bootstrapping key. Keywords. FHE, lattices, learning with errors (LWE), ring learning with errors (RLWE), TFHE, data security, RELU, machine learnin

The dual corporate income tax in China: the impact of unification

For many years, foreign funded companies in China enjoyed a relatively low tax rate and a series of preferential policies which were aimed at encouraging foreign direct investment in China. By adopting a new law in 2007, however, the National People's Congress proclaimed the end of the dual corporate-income-tax system. From 2008, the preferential tax treatment of foreign capital will be phased out. As a result, the income tax rate for domestic and foreign funded companies will be unified at the rate of 25%. This paper explores the impact of the dual corporate income tax system on both domestic and foreign funded enterprises and discusses the possible effects of the unification