Tag Archives: Value-Added

VAT EXTENDED TO VALUE-ADDED 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

SFTZ VALUE-ADDED TELECOM OPENING
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

SHANGHAI FREE TRADE ZONE UPDATE
Oct. 2013 to Jan. 2014 China Bulletin

Following the opening of the Shanghai Free Trade Zone (SFTZ) in September (Aug.-Sept. China Bulletin), at least 12 foreign bank branches and 1,400 companies have registered in the SFTZ, and more than 6,000 are applying to register.  A series of new announcements and regulations have been issued opening value-added telecoms services (see SFTZ VATS Opening), relaxing foreign investment approval requirements, permitting resident and non-resident free-trade bank accounts, liberalizing foreign exchange for trade and investment, reducing restrictions on cross-border securities investment, clarifying import tax policies, opening performance agency and entertainment venue operations to foreign investment, and producing and selling video game equipment (see below).  Industries where foreign investment is restricted in China proper, like securities and gold trading, are targeting the SFTZ. Continue reading