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New Chinese tax rules to cut cost of M&A

China’s State Administration of Taxation has introduced new rules making companies exempt from turnover tax on asset restructuring activities, Chinese state media report. This is expected to lower the cost, and increase the speed, of mergers and acquisitions in the domestic pesticide industry. The new rules came into effect on October 1st. The country is targeting a 30% reduction in the number of agrochemical companies by 2015 ( Agrow No 601, p 32).

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