May 31 2018

China to Launch Tax-free Policy for Service Exports in 17 Regions

China will further open up its service sector by expanding the pilot program for the innovative development of service trade, the State Council decided at an executive meeting chaired by Premier Li Keqiang on May 23, 2018.

It was decided at the meeting that the pilot program will be rolled out in 17 areas from July 1, 2018, to June 30, 2020, for the innovative development of trade in services. A series of opening-up measures will be piloted in the 17 places, covering telecommunications, tourism, engineering consulting, finance and legal services. Access mechanisms for trade in services on cross-border delivery and overseas consumption will be explored and refined, while restrictions will be gradually lifted or eased. Trade in services in such areas as R&D and design, inspection and testing, international settlement and exhibition will be expanded. Tax exemption policies will be made available for service exports, and eligible exporters can enjoy zero tax rates. Exports of emerging services that are guided by Internet Plus will be encouraged.