China’s SAT clarifies taxation rules for international telecommunication services

China’s State Administration of Taxation (SAT) recently clarified issues dealing with business taxes levied on international telecommunication services. According to the provisions of the Interim Regulations for Business Tax, any income acquired by any unit or individual through the leasing of international telecommunication network resources, which may include foreign electric circuits, underwater cables, satellite repeaters, etc, is not covered under the regulation, and no business tax shall be levied.
 
Additionally, in accordance with the provisions of CAISHUI No.111 document, any international telecommunication service provided by any foreign unit or individual to any domestic units or individuals, which may include international calling services, international roaming services for mobile phones, internet services for mobile phones, international short messaging services for mobile phones and international multimedia messaging service for mobile phones, is not covered under the regulation, and no business tax shall be levied.