Recently, the Jingzhou Municipal People’s Government released guidelines on facilitating the development of service industry. General goals have been set: the added value of the service industry will increase by 18% annually, reaching 60 billion RMB ($ 9.85 billion) by 2015 and 100 billion RMB ($ 16.42 billion) by 2018; the proportion of service industry added value in the GDP will increase by one percentage, reaching 38% by 2018; and the labor force in service industry will take 40% or higher of the total labor force.
According to the guidelines, preferential policies will be applied for the registration of enterprises in service industry, allowing the use of new terms in naming the enterprise so as to better present the characteristics of the industry and the business it covers.
Meanwhile, there are preferential taxation policies for the growth of small enterprises in service industry: generally, the income taxation rate for small enterprises is 20%; for those with income no more than 60,000 RMB, the taxable income will be halved, with taxation rate being 20%; for those with income no more than 20,000 RMB, the added value tax and business tax will be exempted.