New Business Tax Incentives in Shanghai

On June 10, 2009, the State Administration of Taxation and the Ministry of Finance issued the Notice on the Development of Shanghai as an International Financial and Shipping Center (the "Notice"), effective as of May 1, 2009. According to the Notice, taxpayers registered in Yang Shan Bonded Port are exempt from paying business taxes on revenue generated from international maritime shipping, goods transportation, warehousing, and cargo loading and unloading. In addition, insurance companies registered in Shanghai are exempt from paying business tax on revenue derived from international shipping insurance. It is expected that more tax incentives will be issued in the future to further promote the development of Shanghai as an international financial and shipping center.


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