On January 15, 2009, the State Council printed and issued the Reply to Issues Concerning Promoting the Development of the Outsourcing Industry ([2009] No. 9). Chinese Vice Premier Wang Qishan hosted a meeting on February 2nd in Nanjing, capital of Jiangsu Province, to discuss progresses of policy implementation. Ministry of Finance, Ministry of Commerce, Ministry of Industry and Information Technology, and General Administration of Customs have all promulgated policies to encourage and facilitate the development of the outsourcing industry.
On April 24, 2009, Ministry of Finance, National Development and Reform Commission, State Administration of Taxation, Ministry of Science and Technology and Ministry of Commerce co-issued the Notice on Issues Relevant to the Taxation Policies on Advanced- Technology Service Enterprises ([2009] No. 63)
• A 15 percent deduction on corporate income tax for advanced- technology service enterprises.
• Employees’ education and training expenses are deducted before the calculation of corporate income tax with a ratio of no more than 8 percent of the total income. Expenses that exceed 8 percent will be deducted in the following financial years.
• Sales taxes are exempt for accredited advanced-technology outsourcing enterprises.
On April 7, 2009, Ministry of Finance and Ministry of Commerce jointly issued the Notice on Providing Funds Management Support to Outsourcing Enterprises Undertaking International Businesses ([2009] No.44).
• The government will offer outsourcing companies a subsidy of up to 4,500 yuan (662 U.S. dollars) a year for every college graduate employed on a contract of at least one year.
• For every graduate employed on a contract of at least one year, his or her training institutions will be awarded a RMB500 subsidy per person.
• A fixed amount of RMB5 million will be offered to model cities, which have not received financial support from the government yet.
• Outsourcing enterprises will be awarded up to RMB500 thousand subsidies for obtaining each of the six certifications.
On March 27, 2009, The General Office of Ministry of Commerce issued the Notice on National–level Economic and Technological Development Zones in Central and Western China to Be Subsidized for Outsourcing Infrastructure ([2009] No. 81).
• Central government financial support on loan interest is applicable for outsourcing infrastructure constructions in National-level Economic and Technological Development Zones in Central and Western China.
On March 23, 2009, Ministry of Human Resources and Social Security and Ministry of Commerce jointly promulgated the Notice on Relevant Issues Concerning the Implementation of Special Working-hour Systems in Outsourcing Enterprises ([2009] No. 36).
• The uncertain working-hour system is applicable on approval for personnel of software development, personnel of technology research and development, senior management, and other staff who are unable to work under the standard working-hour system or who must work flexibly.
• The calculating working time synthetically system is applicable on approval for staff who must work continuously and others whose working time can be calculated synthetically.
On March 21, 2009, Ministry of Industry and Information Technology printed the Notice on Providing International Telecommunication Services Support for Outsourcing Model Cities ([2009] No.107).
• To support the advancement of international telecommunication services in model cities by setting up dedicated international telecommunication channel, utilizing network advantages of China’s telecommunication enterprises to build up virtual networks and lines of exclusive use for outsourcing enterprises.
• To tailor an action plan in safeguarding telecommunication service delivery for model cities. Telecommunication service provides should classify outsourcing enterprises and parks as their important clients and provide them with high-quality and efficient services.
On March 18, 2009, Ministry of Education and Ministry of Commerce c0-published the Several Opinions on Strengthening Trainings for Employees in the Outsourcing Industry and Facilitating University Graduates in Searching for Employment ([2009] No.5).
• To establish a training center for outsourcing talents, and to work out the industry code of conduct.
• The two ministries have decided to periodically publish the numbers of university and professional training institution graduates employed by outsourcing enterprises.
• Universities in model cities will add the major of outsourcing.
• To encourage the founding of enterprise-university union by the means of exchanging business professionals and university lecturers.
• To form a platform to train outsourcing teachers.
On March 12, 2009, General Administration of Customs promulgated the Notice on Facilitating the Advancement of the Outsourcing Industry ([2009] No.96).