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Economy

China gives tax break to service outsourcing firms

(Agencies)
Updated: 2010-08-11 10:34
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China will exempt service outsourcing companies from business tax from July 1 until the end of 2013 to boost their expansion, the Finance Ministry said on Wednesday.

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In a statement on its website, the ministry said the policy covers firms specializing in information technology outsourcing (ITO), business process outsourcing (BPO) and knowledge process outsourcing (KPO) in 21 Chinese cities, including Beijing, Shanghai, Dalian and Shenzhen.

China is currently the world's second-largest outsourcing market for such services, after India.

China's revenues from such outsourcing grew 151.9 percent in 2009 to $10.1 billion, according to data from the Commerce Ministry.