Recently, the Ministry of Finance and the State Administration of Taxation jointly issued the Notification on Business Tax Preferential Policies in Comprehensive Experimental Area of Pingtan, Fujian Province, and decided to implement business tax preferential policies for businesses registered in the Comprehensive Experimental Area of Pingtan involved in shipping, insurance, service outsourcing and logistics.

According to the notification, the shipping companies registered in Pingtan are entitled to an exemption of business tax on their revenue of shipping business between Pingtan and Taiwan. The insurance companies registered in Pingtan may enjoy the exemption policy of business tax on their revenue of international shipping insurance services.

In addition, the registered enterprises in Pingtan engaged in offshore service outsourcing business will be exempt from business tax. As for the registered logistics enterprises with eligible qualifications, the business tax will be collected in accordance to the current business tax policy for pilot logistics enterprises.

The notification requests that the preferential policies come into effect on December 1, 2011. The business tax collected from December 1, 2011 to the date of effectiveness shall be deducted from the later payable tax amount. The part that is not deductible will be refunded.

Edited by Chen Zhilin and Emily Cheng