China plans to enact a bill that would eventually unify income tax rates for domestic and foreign companies at 25 percent after years of criticism that the tax policies are unfair to domestic entities.

The Standing Committee of the National People's Congress (NPC), or China's top legislature, has initiated the lawmaking process to discuss a bill on corporate income tax on Sunday.

China's taxation administration said on January 17 that the administration is still working on a proposal for a unified income tax system both for domestic and overseas-funded firms.

At the moment, the rate stands at 15 percent for foreign companies, but 33 percent for their domestic peers.