Page 11 - The South China Business Journal
P. 11
It is engaged in one or more categories of is expected to decline, application of rules in
advanced technology-enabled business services respect of recognition to be more consistent
listed in the Scope of Recognized Technologically and information asymmetry to be eliminated.
Advanced Services (for Trial Implementation) Enterprises having difficulty with gaining the
and adopts advanced technologies or has strong necessary recognition from the municipal
research and development capabilities; department are likely to benefit from the issuance
of Art. No. 79. Before the amendment, the
3. More than 50% of its staff hold a college degree recognition process was subject to review by the
or above; municipal department and then by the provincial
department, whereas now it is merely subject to
4. More than 50% of its total revenue in the review by the latter, followed by registration on
current year is derived from the revenue generated the National Science and Technology Information
from advanced technology-enabled business System. Such a difference shows that China is
services listed in the Scope of Recognized streamlining administration and giving impetus to
Technologically Advanced Services (for Trial business growth.
Implementation); and
3. The following provision has been inserted
5. Its revenue generated from offshore service into Art. No. 79: "Qualified advanced technology
outsourcing business is not less than 35% of its service enterprises shall apply to the Department
total revenue in the current year. of Science and Technology at the provincial level,
and the Departments of Science and Technology
Similar with former policies, the at the provincial level shall, jointly with the
authorized scope of technologically Departments of Commerce, Finance and Taxation
advanced business services prescribed as well as Commissions of Development and
by Cai Shui [2017] No.79 remains Reform at the same level, carry out a review and
fundamentally unchanged: issue official documents of recognition. The
list of the recognized enterprises together with
1. Information technology outsourcing (ITO) other relevant information is then filed with
the Management for Services for the National
1. Software development and outsourcing Technologically Advanced Service Enterprises of
the Ministry of Science and Technology." Such a
2. Information technology development rule is likely to bring greater transparency when
service outsourcing dealing with enterprises’ information. Enterprises
as applicants should therefore check their data's
3. Information system operation and consistency and reasonableness, ensuring that
maintenance outsourcing the information is sufficiently reflective of the
company to facilitate the recognition process.
2. Technical business process outsourcing (BPO) 4. Opportunities are emerging. Enterprises
should take advantage of these policies in
3. Technical knowledge process outsourcing (KPO) addition to optimising their business operations.
Other preferential tax policies also deserve
Insights: enterprises' attention, such as policies
relating to deductible R&D expenses and VAT
1. Art. No. 79 mainly broadens the scope of the concerning software industry development.
preferential tax policies. Enterprises that could
not benefit from these policies before because of 5. Art. No. 79 offers guidance on foreign WONG Wa Sun Thomas
geographic limitations are encouraged to apply investment in China. The subsequent Art. Partner, CW CPA
for registration as an advanced technology service No. 88 has ascribed greater weight to the
enterprise in order to enjoy such benefits. introduction of foreign investment and the Address: Suites 2111-13, 21/F,
building of a higher-level investment platform. Prudential Tower, The Gateway,
2. Distinct from Cai Shui [2014] No. 59, Art. At present, global trade in services including Harbour City, 21 Canton Road,
No. 79 stipulates that the provincial department outsourcing services is in the ascendant, and Tsimshatsui, Kowloon, Hong Kong
will supersede the municipal department in the the demand for such services is expected to
administration of recognition, and any unfair continue growing fast. Enterprises should avail Tel: +852 2956 0333
treatment will incur severe punishment. The Fax: +852 3020 6533
frequency of violations by the public sector themselves of such opportunities.â– E-mail: thomas@cwhkcpa.com
Website: www.cwhkcpa.com
South China Business Journal 9
advanced technology-enabled business services respect of recognition to be more consistent
listed in the Scope of Recognized Technologically and information asymmetry to be eliminated.
Advanced Services (for Trial Implementation) Enterprises having difficulty with gaining the
and adopts advanced technologies or has strong necessary recognition from the municipal
research and development capabilities; department are likely to benefit from the issuance
of Art. No. 79. Before the amendment, the
3. More than 50% of its staff hold a college degree recognition process was subject to review by the
or above; municipal department and then by the provincial
department, whereas now it is merely subject to
4. More than 50% of its total revenue in the review by the latter, followed by registration on
current year is derived from the revenue generated the National Science and Technology Information
from advanced technology-enabled business System. Such a difference shows that China is
services listed in the Scope of Recognized streamlining administration and giving impetus to
Technologically Advanced Services (for Trial business growth.
Implementation); and
3. The following provision has been inserted
5. Its revenue generated from offshore service into Art. No. 79: "Qualified advanced technology
outsourcing business is not less than 35% of its service enterprises shall apply to the Department
total revenue in the current year. of Science and Technology at the provincial level,
and the Departments of Science and Technology
Similar with former policies, the at the provincial level shall, jointly with the
authorized scope of technologically Departments of Commerce, Finance and Taxation
advanced business services prescribed as well as Commissions of Development and
by Cai Shui [2017] No.79 remains Reform at the same level, carry out a review and
fundamentally unchanged: issue official documents of recognition. The
list of the recognized enterprises together with
1. Information technology outsourcing (ITO) other relevant information is then filed with
the Management for Services for the National
1. Software development and outsourcing Technologically Advanced Service Enterprises of
the Ministry of Science and Technology." Such a
2. Information technology development rule is likely to bring greater transparency when
service outsourcing dealing with enterprises’ information. Enterprises
as applicants should therefore check their data's
3. Information system operation and consistency and reasonableness, ensuring that
maintenance outsourcing the information is sufficiently reflective of the
company to facilitate the recognition process.
2. Technical business process outsourcing (BPO) 4. Opportunities are emerging. Enterprises
should take advantage of these policies in
3. Technical knowledge process outsourcing (KPO) addition to optimising their business operations.
Other preferential tax policies also deserve
Insights: enterprises' attention, such as policies
relating to deductible R&D expenses and VAT
1. Art. No. 79 mainly broadens the scope of the concerning software industry development.
preferential tax policies. Enterprises that could
not benefit from these policies before because of 5. Art. No. 79 offers guidance on foreign WONG Wa Sun Thomas
geographic limitations are encouraged to apply investment in China. The subsequent Art. Partner, CW CPA
for registration as an advanced technology service No. 88 has ascribed greater weight to the
enterprise in order to enjoy such benefits. introduction of foreign investment and the Address: Suites 2111-13, 21/F,
building of a higher-level investment platform. Prudential Tower, The Gateway,
2. Distinct from Cai Shui [2014] No. 59, Art. At present, global trade in services including Harbour City, 21 Canton Road,
No. 79 stipulates that the provincial department outsourcing services is in the ascendant, and Tsimshatsui, Kowloon, Hong Kong
will supersede the municipal department in the the demand for such services is expected to
administration of recognition, and any unfair continue growing fast. Enterprises should avail Tel: +852 2956 0333
treatment will incur severe punishment. The Fax: +852 3020 6533
frequency of violations by the public sector themselves of such opportunities.â– E-mail: thomas@cwhkcpa.com
Website: www.cwhkcpa.com
South China Business Journal 9
