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Detailed Guidelines Issued on Favorable Tax Treatment for High-Tech Service Enterprises

The Chinese Ministry of Finance and the State Administration of Taxation recently issued a Circular, which sets out the tax policy for high-tech service enterprises (Caishui [2009] No. 63, hereinafter as "Circular No. 63"). Circular No. 63 follows from an announcement by the General Office of State Council relating to the “Promotion of the Development of the Service Outsourcing Industry" (Guobanhan [2009] No. 9), according to which high-tech service enterprises in 20 specified cities are entitled to a 15% reduced enterprise income tax rate and an exemption from business tax for income arising from offshore service outsourcing (see Tax Analysis of 27 March 2009).
 

Attachment

Deloitte Tax Analysis_Favorable Tax Treatment for High-Tech Service Ent._Chi.pdf

Deloitte Tax Analysis_Favorable Tax Treatment for High-Tech Service Enteps_Eng.pdf