CHINA has not studied when to cancel the corporate tax exemption and reduction for new foreign joint ventures, a tax official says. China has offered a five-year tax relief package - a two-year tax holiday and a 50 per cent discount for the next three years - to foreign joint ventures since 1979 to attract investment. Xiang Huaicheng, deputy commissioner of the State Administration for Taxation, said in Hong Kong yesterday the incentives would be lifted to cope with China's long-term development. 'But we have yet to study when to cancel this tax relief treatment and no timetable has been set,' he said. Mr Xiang said an announcement would be made after a date had been decided. A reasonable grace period would be allowed before the law would be implemented. He added that the interests of existing ventures would be considered in drafting the legislation. He said the reinvestment of foreign joint ventures would be treated like a new venture, enjoying similar perks. Mr Xiang said China would not cancel all preferential tax treatments despite reform to level the playing field for foreign and domestic companies.