Tax Re­duc­tion

Beijing Review - - This Week Economy -

China is to ex­pand a tax cut pro­gram for tech­no­log­i­cally ad­vanced ser­vice firms na­tion­wide.

The rate of cor­po­rate in­come tax will be cut to 15 per­cent for busi­nesses in the ser­vice trade sec­tor which qual­ify as tech­no­log­i­cally ad­vanced, ac­cord­ing to a state­ment re­leased by the Min­istry of Fi­nance.

The tax cut has been in place in 15 re­gions in­clud­ing Tian­jin, Shang­hai and Shen­zhen since 2016 on a trial ba­sis.

Seven­teen other re­gions, in­clud­ing Bei­jing, will join the pro­gram be­tween July 1, 2018 and June 30, 2020, to fur­ther pro­mote in­no­va­tive ser­vice trade.

China’s ser­vice trade vol­ume has am­ple room for growth com­pared with de­vel­oped coun­tries. Trade in ser­vices to­taled 4.7 tril­lion yuan ($730 bil­lion) in 2017, up 6.8 per­cent year on year.

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