ANNOUNCEMENT 29 Jun 2012In June 2012, the government of China announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
Source from China Ministry of Finance, Chinese Version Available:
On 29 June 2012, the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) jointly released the Notice (No.54 Caishui, 2012) on Exemption of Business Taxation on Some Overseas Labor Services.
In accordance with the Notice above, all business taxation will be eliminated for domestic enterprises providing the following service to organizations overseas:
- construction supervision services,
- assignment of sailors,
- personnel management.
The Notice has retroactive effect and is applicable since 1 January 2012. Enterprises will be refunded in case they paid the business tax already. This measure provides an incentive to engage in overseas markets, intensifying competition therein and to the detriment of rival foreign commercial interests.