Offshore service outsourcing and some other exported services in China are eligible for the Value-Added Tax (VAT) exemption policy, which offers significant tax incentives to encourage the development of these services. This policy aims to promote the competitiveness of Chinese enterprises in the global market and support the growth of the service industry.

Under the VAT exemption policy, enterprises providing offshore service outsourcing and some other exported services are exempted from paying VAT on the income generated from these services. This means that the enterprises can retain the full amount of their earnings without having to deduct any VAT.

To qualify for the VAT exemption policy, enterprises must meet certain criteria, such as engaging in qualified services and concluding written contract with the counterparty for the supply of the cross-border services. The specific scope of services that are eligible for the VAT exemption policy is defined by the Chinese government and includes a wide range of services such as international transport services and research and development services.

Application for VAT Exemption

To enjoy the tax incentives, offshore service outsourcing enterprises need to apply for the VAT exemption. The process typically involves the following steps:

Ø Eligibility Assessment: Ensure that they meet the eligibility criteria.

Ø Documentation Preparation: Gather all necessary documents and information required for the application. Required documents include registration form, contracts for cross-border sales of services, evidence of service location outside China, etc.

Ø Submission to Tax Authorities: Submit the completed form and supporting documents to the tax authorities.

Ø Retaining documents: After the registration procedure is completed, enterprises are required to retain the documents submitted in order to provide such documents upon the request of the tax authorities.

Our Services

We provide comprehensive services to offshore service outsourcing enterprises in China. We assist in understanding the eligibility criteria and requirements for the VAT exemption. We guide enterprises through the application process, preparing and submitting the necessary documentation to the tax authorities. We also stay updated with the latest tax laws and regulations to ensure our clients comply with such law and regulations.