May 7 – The Ministry of Finance and the State Administration of Taxation issued a notice yesterday regarding business tax exemption for international transportation services, effective January 1, 2010.

Financial Tax [2010] No. 8 stipulates that since January 1, 2010, enterprises or individuals who provide international transportation services within China shall be exempted from business tax.

International transportation services refer to the following categories:

• Carrying passengers or goods from China to foreign countries

• Carrying passengers or goods from foreign countries to China

• Carrying passengers or goods outside of China

The notice states that business taxes paid between January 1, 2010 and the date the notice was issued will be deducted from future tax payments, or will be rebated.