China will replace its turnover tax on the telecom sector with a value-added tax (VAT) effective June 1, the government announced on April 30. “Basic telecom services such as voice calls and bandwidth leasing or sales will be subject to 11 percent VAT while value-added services such as messaging, data transfer and Internet access will be subject to a 6 percent rate. Telecom services for overseas clients will be exempt,” state-run news agency Xinhua reported. See, Xinhuaet
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