China updates tax-cut guidelines to combat COVID-19
China's taxation authority on Tuesday unveiled an updated tax-cut guidelines to better cope with the spread of COVID-19 and support work and production resumption.
The guidelines detailed 17 policies involving supporting epidemic prevention and control, material supplies, donations and work resumption for both individual taxpayers and companies, said the State Tax Administration.
For example, for supporting the resumption of work and production, the carry-over period for losses in 2020 for companies plagued by the epidemic was extended to eight years. The value-added tax (VAT) for small-scale taxpayers will be reduced or exempted in due time, according to the updated guidelines.
In terms of support for protection and treatment, personal income tax will be exempted for temporary work subsidies and bonuses for epidemic prevention and control that meet prescribed standards. The medical protective supplies that are given to employees by their employers for epidemic control will also be exempted from personal income tax.
The incremental VAT credits will be fully refunded for enterprises providing key materials for the prevention and control of the epidemic. The VAT will also be exempted for taxpayers whose incomes are obtained from transporting epidemic control supplies, necessary daily supplies as well as public transportation services. For departments in charge of public health, duties will be exempted for importing epidemic control supplies, said the State Tax Administration.