To boost the outsourcing sector, China’s Ministry of Finance has added 10 more cities that will offer tax incentives to outsourcing service companies using advanced technology.
Corporate income tax (CIT) cuts will now be available in Shenyang, Changchun, Nantong, Zhenjiang, Fuzhou, Nanning, Urumqi, Qingdao, Ningbo, and Zhengzhou, in addition to the 21 cities which were approved in 2014.
Companies in these cities will enjoy a reduction in the CIT rate from 25 percent to 15 percent. They will also benefit from an annual deduction for employee education expenses up to eight percent of total wages.
The measures will be in force until December 31, 2018.