Shanghai FTZ 15 pct corporate tax rate rumor denied

Officials have denied rumors of a 15 percent corporate tax rate in the Shanghai Free Trade Zone, the Shanghai Securities Journal reported on Monday.

The report cited anonymous sources saying that the government will implement preferential policies related to the taxation of assets in the free trade zone, without giving further detail.

"This should attract foreign and domestic companies to the zone, and at the same time reduce their cash-flow burdens," the report said.

However, the tax rate levied on enterprises will not be lowered from the current 25 percent to 15 percent, it quoted government sources as saying.

The government has yet to formally set out a timeline or commit to any of the proposed policies in circulation, including yuan convertibility or the relaxation of certain industries to foreign owners like banking and telecommunications.