|China Provides Tax Breaks for High-Tech Services|
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.
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Published on our website on Feb.16, 2016