China to expand tax breaks for R&D, venture capital

SHANGHAI (Reuters): China will expand preferential tax policies for firms engaged in research and development beginning in 2016, according to a statement posted Wednesday night on the State Council website following a Council meeting chaired by Premier Li Keqiang.

Venture capital firms investing in new technology start-ups for more than two years will also receive tax breaks beginning in October 2015, the statement said.

In addition, a draft of the reform to the nationwide residence permit system was also approved, the statement said, without providing further details.