New Business Tax Incentives in Shanghai
On June 10, 2009, the State Administration of
Taxation and the Ministry of Finance issued the Notice on the Development of
Shanghai as an International Financial and Shipping Center (the "Notice"),
effective as of May 1, 2009. According to the Notice, taxpayers registered in
Yang Shan Bonded Port are exempt from paying business taxes on revenue
generated from international maritime shipping, goods transportation,
warehousing, and cargo loading and unloading. In addition, insurance companies
registered in Shanghai are exempt from paying business tax on revenue derived
from international shipping insurance. It is expected that more tax incentives
will be issued in the future to further promote the development of Shanghai as
an international financial and shipping center.
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