Beijing Cuts Income Tax for Technologically Advanced Service Enterprises
The Chinese central government has expanded tax cuts for technologically advanced service enterprises to the whole of the country following their prior deployment in trial policy zones.
China’s Ministry of Commerce and the State Administration of Taxation recently issued a joint circular mandating the nation-wide implementation of income tax policies for technologically advanced service enterprises that were first introduced in service and trade pilot zones.
The income tax for service trade sector enterprises throughout China that qualify as technologically advanced will be reduced to 15%, as has already been implemented since 2016 in total of 15 trial regions, including Tianjin, Shanghai and Shenzhen.
A total of seventeen other regions including Beijing will take part in the program from 1 July 2018 to 30 June 2020, as part of efforts to “further drive the innovative growth of the service trade sector, and optimise the foreign trade structure.”