The Ministry of Finance and the State Administration of Taxation released the news on January 12, 2015 that from January 1, 2015, business tax will be exempted for part of the cultural service export and pension services provided by existing pension service organizations. This move is to support the international trade of cultural services and accelerate development of the pension service industry. According to the Circular on Business Tax Policies for Supporting the Cultural Service Export and Others jointly released by the two departments, business tax will be exempted for two services provided out of the territory of China by taxpayers for foreign institutions or individuals: first, restoration and preservation services of cultural relics and ruins; second, the traditional medical diagnosis and treatment services that are inscribed to the list of intangible cultural heritage of China.

 

Moreover, in order to accelerate development of the pension service industry, better the function of the taxation policy on encouraging private investment in the pension service industry, the pension service providers can be exempted from the business tax for the pension services they provide.

 

The Circular further clarified that the pension service providers refer to those which are incorporated in line with the Measures on Licensing of Pension Service Institutions and registered in line with provisions of laws, provide concentrated accommodation and care services for seniors. The pension services refer to the daily care, rehabilitation services, spiritual consolation, cultural entertainment and other services provided by the above-mentioned pension service organizations for seniors.

 

What’s more, the two departments also clarified that the futures market supervision fee collected by China Financial Futures Exchange on behalf of the government can be deducted from the turnover subject to the taxation calculation of business tax.  

 

Source: January 13, 2015, Nanfang Daily