Law of the People’s Republic of  Chinaon Corporate Income Tax has been approved by the 5th plenary of the 10th National People’s Congress on March 16, 2007 and shall come into force as of January 1, 2008. According to the new law, the income tax rate of companies with foreign investment is 25%, which is the same as of companies with domestic investment. Only the encouraged projects and Industries according with the regulations and laws of the nation are able to enjoy the preferential rate. The small enterprises earning low profits in accordance with the condition, be levied the company income tax with 20% reduction. Those hi-tech enterprises supported by the state, be levied the company income tax with 15% reduction