China Amends Business Tax for International Telecommunications

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Jul. 5 – The State Administration of Taxation has issued a notice regarding business tax-related issues for international telecommunication businesses.

Guoshuihan [2010] No. 300, issued on June 28, stipulates that no business tax shall be levied on the revenue generated from business units or individuals who rent out outdoor real estate telecommunication network resources (including outdoor circuits, submarine cables, satellite transponders, etc.), as they are not within the scope of business tax.

Furthermore, overseas enterprises or individuals providing international communication services (including international calling services, international roaming services, mobile phone, mobile phone Internet services, international SMS service, and international MMS interoperability services) do not belong to the scope of business tax, and therefore no business tax will be levied in accordance with the “Notice on Tax Exemptions regarding Business Transactions of Personal Financial Products” (Caishui [2009] No. 111).

Related Reading
The 2010 China Tax Guide