Adjustment to Business Tax Rates for Entertainment Industry in Zhejiang

It was learned from the Provincial Local Taxation Bureau on August 31st that the business tax rates of entertainment industry in Zhejiang have just been adequately adjusted. With the approval from the Provincial Government, it is stipulated in The Provincial Finance Department of Zhejiang and the Provincial Local Taxation Bureau of Zhejiang, Circular on Revising Business Tax Rates for Entertainment Industry that with the exception of the business tax rate of 10% for golf courses, all the other taxed sectors of the entertainment industry are subject to the adjusted tax rate of 5%. The effective date of the adjusted tax rates for the entertainment industry is January 1st, 2010.

It is estimated that this adjustment to business tax rates will alleviate the tax load on tax payers in the entertainment industry of Zhejiang by 0.3 billion RMB.