June 10, 2009

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.

Copyright ©2009 by Kaye Scholer LLP. All Rights Reserved. This publication is intended as a general guide only. It does not contain a general legal analysis or constitute an opinion of Kaye Scholer LLP or any member of the firm on the legal issues described. It is recommended that readers not rely on this general guide but that professional advice be sought in connection with individual matters.References herein to "Kaye Scholer LLP & Affiliates," "Kaye Scholer," "Kaye Scholer LLP," "the firm" and terms of similar import refer to Kaye Scholer LLP and its affiliates operating in various jurisdictions.

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