In late September, Beijing, Hunan and Anhui pilot free trade zones (FTZ) were successively established, making the number of China's pilot free trade zones increasing to 21. Under the boost of tax policies, the import and export volume of free trade zones reached 2.7 trillion yuan in the first seven months of this year.

According to the State Taxation Administration, the newly established Beijing Pilot Free Trade Zone is mainly characterized by scientific and technological innovation, opening-up of the services sector and digital economy. Under the background that other pilot free trade zones still focus on developing trade in goods, Beijing Pilot Free Trade Zone highlights the importance of developing trade in services. In terms of taxation, Beijing Pilot Free Trade Zone will continue to expand the service functions and application fields of “Single Window” system in international trade, implement import tax exemption for scientific research equipment of intra-zone R&D institutions which are in line with the policy, and encourage tax policies of technology transfer.

Li Ping, researcher at the Research Institute of Tax Sciences of the State Taxation Administration, said that under the background of the accelerating formation of a new development pattern, with the large national economic circulation as the main body and the domestic and international dual economic circulation promoting each other, pilot free trade zones will become a test ground for China to explore and form a new development pattern, accumulating experience for accelerating the formation of a new development pattern. In terms of reform and opening up, taxation will paly its due role in further improving the level of innovation and opening-up in China.

(Note: Content source is from Xinhua)