Circular on Policies Regarding Business Income Tax

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On November 15, 2010, the Ministry of Finance,[link widoczny dla zalogowanych], the State
Administration of Taxation, the Ministry of Commerce, the Ministry of
Science & Technology and National Development and Reform Commission
printed and distributed the Circular on Policies Regarding Business
Income Tax for Technically Advanced Service Enterprises (Ministry of
Finance & the State Administration of Taxation [2010] No. 65).
Preferential business income tax policies are in place for the recognized
technically advanced service enterprises in 21 outsourcing model cities of China
including Beijing, Tianjin, Shanghai, Chongqing, Dalian, Shenzhen, Guangzhou,
Wuhan, Harbin, Chengdu, Nanjing, Xi’an, Jinan,[link widoczny dla zalogowanych], Hangzhou, Hefei,[link widoczny dla zalogowanych], Nanchang,
Changsha, Daqing,[link widoczny dla zalogowanych], Suzhou,[link widoczny dla zalogowanych], Wuxi and Xiamen from July 1, 2010 to December
31, 2013: (1) Tax will be levied on the recognized technically advanced service
enterprises with the preferential rate of 15%; (2) For recognized technically
advanced enterprises, educational expenditure on employees within 8% of the
total salary can be deducted from the taxable income; the amount exceeding the
prescribed 8% can be carried over to future tax years for deduction.