China: Preferential Tax Treatment for Technology Companies
China extended its preferential technology advanced service company (TASC) tax treatments to more locations. To promote the development of TASCs, various Chinese government agencies jointly released Caishui 2016 No. 108 on October 12, 2016, to extend the preferential tax treatment to 10 more locations, so that it applies to a total of 31 cities until December 31, 2018. The preferential treatments includes a 15% reduced corporate income tax rate (vs. 25%), and an employee education expense deduction limit of 8% (vs. 2.5%) of total salaries and wages.