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UPDATES OF GOVERNMENT SUPPORTS

The State Administration of Taxation has issued a number of tax incentives which are summarized as below:

1. Support for virus prevention individuals:

  • Particular income of Individuals participating in preventing and therapy of coronavirus is exempted from individual income tax
  • Medical protective equipment for coronavirus (excluding cash) received is tax exempted under individual income tax

2. Supporting the material supplies:

  • The manufacturers of the key supplies for the virus prevention and control can claim full refund of the remaining balance of the tax credit of value added tax and allowing the respective enterprises to one-time 100% tax deduction for equipment purchased
  • Taxpayer who provide transportation services for the key supplies for virus prevention and control, qualified public transportation services, household services, and courier delivery services for residents’ basic necessities are exempted from value added tax.
  • Health Department and Authorities are exempted from customs duties for importing the supplies for virus prevention and control.

3. Encouraging charitable donations:

  • Donors (individuals or enterprises) of approved donations can claim full deduction for the approved donations against enterprise income tax or individual income tax
  • Goods and supplies for dealing with coronavirus are exempted from value added tax, sales tax and the miscellaneous surtaxes and surcharges.
  • Imported supplies for virus prevention and control for donation purpose is exempted from custom duties.

4. Support to returning to work and production:

  • For particular industries facing difficulty under the coronavirus, the loss suffered in 2020 could be carried forward for 8 years.

For details, please refer to the official link (Chinese only).


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