HUAXIA Bank Co, part owned by Deutsche Bank AG, said it will receive a tax break for last year equal to more than a fifth of profits as China helps its banks restructure and hold share sales. The government allowed Huaxia to take 971 million yuan of pretax deductions for staff costs, or 320 million yuan ($43 million) of savings, the bank said yesterday. It will receive a similar exemption this year, the Beijing-based company said.

Huaxia's profit grew 14 percent last year to 1.46 billion yuan, after it paid 954 million in tax. Net income in the first nine months this year rose 29 percent to 1.6 billion yuan. The nation's tax unification plan, to take effect from January 1 next year, will lower the income tax rate to 25 percent and enhance earnings of most banks by between 10 percent and 20 percent.