China will extend tax incentives for outsourcing companies to a further 10 cities in an attempt to lure more firms from the industry to the country. Initially, 21 cities had been selected for the tax incentives in 2014 but the addition of a further 10 should help prove the commitment of the Chinese government to building an outsourcing industry. The tax incentives consist of a reduction in the CIT rate from 25 percent to 15 percent, while they can also benefit from an annual deduction for employee education expenses up to eight percent of total wages.

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