China Clarifies Business Tax Exemption For Offshore Outsourcing

Posted by Reading Time: < 1 minute

Jan. 26 – China’s Ministry of Finance, State Administration of Taxation and Ministry of Commerce have jointly issued the “Notice on the Business Tax Exemption on the Offshore Outsourcing Business in Pilot Cities,” also known as Caishui [2010] No. 64 (Circular 64).

Caishui [2009] No. 63 (Circular 63) qualified hi-tech service enterprises registered in pilot cities for business tax exemption between January 1, 2009 to December 31, 2013 on the income of offshore outsourcing business. Although Caishui [2010] No. 65 announced that Circular 63 was repealed from July 1, 2010, promulgation of circular 64 grants non hi-tech service enterprises in the pilot cities (Chengdu, Dalian, Shanghai, Shenzhen and Xi’an) the same opportunity to enjoy the business tax exemption on offshore outsourcing services. In such respects, the exemption is still permissible.

Dezan Shira & Associates can advise on matters of business tax in China. Please email the firm for advice or clarification on such matters at