Notice on Business Tax Exemption on Offshore Service Outsourcing Business in Model City
Issued by Ministry of Finance, State Administration of Taxation and Ministry of Commerce
Finance and Taxation [2010] No. 64
To authorities of Ministry of Finance, State Administration of Taxation and Ministry of Commerce of Beijing, Tianjin, Dalian, Heilongjiang Province, Shanghai, Jiangsu Province, Zhejiang Province, Anhui Province, Jiangxi Province, Fujian Province, Xiamen, Shandong Province, Hubei Province, Hunan Province, Guangdong Province, Shenzhen, Chongqing, Sichuan Province and Shanxi Province (Municipalities and to be listed cities),
This Notice is hereby formulated and prepared in order to develop the offshore service outsourcing industry with the approval of the State Council, the made and concluded Notice on business tax policy of offshore service outsourcing business is as follows:
I. From 1st July 2010 to 31st December 2013, companies which are engaged in offshore service outsourcing business and registered in the following 21 offshore service outsourcing business model cities, such as Beijing, Tianjin, Dalian, Harbin, Daqing, Shanghai, Nanjing, Suzhou, Wuxi, Hangzhou, Hefei, Nanchang, Xiamen, Jinan, Wuhan, Changsha, Guangzhou, Shenzhen, Chongqing, Chengdu and Xian, business tax be exempted in the gained income of those foresaid companies.
II. Gained income from offshore service outsourcing business refer to the income generated by the Companies in Clause I, those companies according to the commission contract signed with the overseas companies, directly or in sub-contract provide information technology outsourcing (ITO), business process outsourcing (BPO), knowledge process outsourcing (KPO) services which is stated specifically in the attachment to the overseas companies.
III. The paid business tax amount which shall be exempted from 1st July 2010 to the received date of this Notice can be deducted in the coming taxable business tax amount. Provided that the paid amount cannot be fully deducted and exempted during 2010, the balance will be returned.
Ministry of Finance, State Administration of Taxation and Ministry of Commerce
28th July 2010
Attachment: Tax Exemption Scope of Offshore Service Outsourcing Business
I、（ITO）Information Technology Outsourcing
（I）Software research and development and outsourcing
Category |
Applicable Scope |
1、Software research and development services |
Apply to finance, government, education, manufacturing, retailer, services, energy, logistics, transportation, media, telecom, public services and medical and health services. Providing software research and development services, such as development of customized software, embedded software and software kit, and system software, software testing, etc. |
2、Software technology services |
Software consultant, maintenance, training, and testing services, etc. |
（II）Information technology research and development outsourcing
Category |
Applicable Scope |
1、Integrated circuit and electronic circuit design |
Integrated circuit and electronic circuit design and relevant technology support services, etc. |
2、Testing platform |
Providing testing platform for development and application of software, integrated circuit and electronic circuit. |
（III）Information system operation and maintenance outsourcing
| Category |
Applicable Scope |
1、Information system operation and maintenance services |
Management and maintenance services for customer’s internal information system integration, networks, desktop; application services of information system, such as information engineering, geographical information system, and remote maintenance, etc. |
2、Basic information technology services |
Basic information technology services, such as integration of basic information technology management platform, management of information technology infrastructure, data centre, hosting centre, security centre and communication services, etc. |
II、（BPO）Business Process Outsourcing
| Category |
Applicable Scope |
1、Company business process design services |
Providing business process design services for client’s company with internal management, business operation, etc. |
2、Company internal management services |
Providing back-stage management, human resource management, finance, auditing and tax management, financial payment services, medical treatment date and other internal business data analysis , mining, management and application services for customer’s company; taking over client’s professional date treatment, analysis and integration services. |
3、Company operation services |
Providing technology research and development services for customer’s company; offering application analysis, database management services for company’s operation, sales, after-sales services. Main businesses include financial service, government affairs and education, manufacturing and bioscience, retailer and wholesaler, transportation, hygiene and health care services, communication and public services and facilities, calling centre, e-commerce platform, etc. |
4、Company supply chain management services |
Providing integrate plan design and database services for purchase, logistics. |
III、（KPO）Knowledge Process Outsourcing
Applicable Scope |
Intellectual property research, medical and biotechnology research and development and tasting, product technology research and development, industrial design, analytics, data mining, animation and online game research and development, educational courseware research and development and engineering design, etc. |
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