China Provides Tax Breaks For High-Tech Services
The State Council executive meeting on February 14 agreed to introduce pilot measures to encourage further development in China’s services sector, including tax breaks for advanced technology service companies.
China will extend a concessionary 15 percent rate of corporate tax (down from 25 percent) to firms that are engaged in providing high-tech services. The concession is already available to certain high value-added industries that the Chinese Government is keen to incentivize.
Education expenses for their employees will also be tax-deductible, subject to a cap set at eight percent of their total wages and salaries bill.
It was stated that promoting the services sector will “foster new economic momentum and promote employment,” particularly at a time when China’s manufacturing sector is being adversely affected by the weak global economic situation.
Source: Tax-News
