Tag Archives: Telecoms

Feb. to June 2014 China Bulletin

Replacement of the Business Tax on service industries with the Value-Added Tax (VAT) continues apace (see SERVICE VAT EXPANDED, Aug.-Sept. China Bulletin), and the Ministry of Finance and State Administration of Taxation issued the Notice on Including the Telecommunications Industry in the VAT Pilot Program, Cai Shui [2014] No. 43 (Notice 43).  This notice extends an 11% VAT to basic telecoms (mainly voice communication and infrastructure services) and a 6% VAT to value-added telecoms (messaging services used in mobile phones, transmitting and apply electronic data and information), replacing a 3% Business Tax Rate. Continue reading

Oct. 2013 to Jan. 2014 China Bulletin

Furthering opening of the Shanghai Free Trade Zone (SFTZ), the Ministry of Industry and Information Technology (MIIT) and Shanghai Municipal People’s Government issued the Opinions on Further Opening Value-Added Telecommunications Business to Foreign Investment in the China (Shanghai) Free Trade Pilot Zone, with effect from January, 2014.  The opinions open several value-added telecoms services (VATS) to foreign investment in the SFTZ, including call centers, domestic multiparty telecom services, internet access services, domestic Internet virtual private network services, online data processing,  and transaction processing services (business e-commerce).  Some of these areas are opened for the first time – the 50% VATS cap has been increased or removed for others. Continue reading

June-July China Bulletin

The Chinese Ministry of Industry and Information Technology (MIIT) issued a new draft Telecommunications Services Classification Catalog (Catalog) for public comment through June 24, 2013. The Catalog lists and classifies the kinds of services for which an operations license is required in China and also divides telecom services into two main categories: basic telecom services, including telecom infrastructure, and value-added telecom services (VATS), which include services other than infrastructure, such as most Internet-related services. It further divides each main category into Type I and Type II services. Continue reading