On Monday, November 14 the Chinese Ministry of Finance said that tax breaks will be extended to outsourcing service providers; the measure falls within the national support plan to the service sector.

The extension of  tax reduction, in particular, will cover 10 among major cities in China, including Shenyang, Urumqi, Qingdao and Ningbo; companies residing there in fact will benefit a reduction of income tax from 25 percent to 15 percent, in the 2016-2018 triennium. Also the cost of training of staff will be tax deductible provided that they represent no more than 8 percent of total wages.

The incentive measure is in addition to other existing tax breaks that already apply to other companies in the same sector that are based in other 21 cities in China.

According to official statements of the government, the service sector has increased its value by 24 percent over last year, reaching a total value of 3.5 billion yuan in the period between January and August 2016.

For more information: asiandesk@blblex.it