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09 March 2016

China expands scope of technologically advanced service company incentives

China's State Council issued Circular 40 on February 22, to launch a two-year pilot policy to encourage development of innovative services in 15 pilot areas. The 15 pilot areas are Tianjin, Shanghai, Hainan, Shenzhen, Hangzhou, Wuhan, Guangzhou, Chengdu, Suzhou, Weihai, as well as Harbin New Area, Jiangbei New Area, Liangjiang New Area, Guian New Area and Xixian New Area. To support the implementation of the pilot policy, Circular 40 expands the scope of enterprises that are eligible for the technologically advanced service company incentives by adding enterprises that are engaged in high-end technologies and high value-added services.

A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details.

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Document ID: 2016-0471

 

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