1.      To Support epidemic prevention and control

For the relevant equipment purchased by manufacturers of key materials for epidemic prevention and control to expand production capacity, they are allowed to be included in the current cost and deducted before corporate income tax.  

2.      Charity donation

Cash and goods donated by enterprises and individuals donate and used in response to COVID-19 epidemic caused by the coronavirus through public welfare social organizations or people's governments at or above the county level and their departments are allowed to be fully deducted when calculating taxable income.

Items directly donated by enterprises and individuals and used to respond to the COVID-19 epidemic caused by the coronavirus to hospitals undertaking epidemic prevention and control tasks are allowed to be deducted in full when calculating the taxable income.

3.	Pre-tax deduction ratio of research and development expenses

   

If the R&D expenses actually incurred in the R&D activities of the enterprise have not formed intangible assets and are included in the current profit and loss, based on the actual deduction according to the regulations, during the period from January 1, 2018 to December 31, 2020, the actual 75% of the amount incurred shall be deducted before income tax; if intangible assets are formed, 175% of the cost of intangible assets shall be amortized before income tax during the above-mentioned period.

4.	Pre-tax deduction at one time on equipment and appliances

    

Equipment and appliances newly purchased by an enterprise from January 1, 2018 to December 31, 2020, whose unit value does not exceed 5 million yuan, are allowed to be included in the current cost and deducted from the taxable income. Tax depreciation is no longer calculated annually.

5.	For companies that produces and assembles specialized supplies for the disabled From January 1, 2016 to December 31, 2020, eligible resident companies that produce and assemble special supplies for the disabled will be exempt from corporate income tax.

6.      SME financing (credit) guarantee agency

From January 1, 2016 to December 31, 2020, qualified SME financing (credit) guarantee institutions shall withdraw guarantee compensation provisions at a rate that does not exceed 1% of the guarantee liability balance at the end of the year, allowing them to be deducted before the enterprise income tax, and at the same time, the guarantee compensation provision accrued in the previous year will be converted into current income;

Qualified SME financing (credit) guarantee institutions shall withdraw the unexpired liability provision not exceeding 50% of the current year guarantee fee income, which is allowed to be deducted before the enterprise income tax, and at the same time, the unexpired liability provision accrued in the previous year shall be converted into current income;

If the actual compensation losses incurred by SME financing (credit) guarantee institutions comply with the tax laws and regulations on the pre-tax deduction of asset losses, the guarantee compensation provision that has been deducted before tax should be offset, and the part that is insufficient to offset the actual taxable income.

7.	Deferred payment of the 2020 income tax by small low-profit enterprises and individual industrial and commercial households

From May 1, 2020 to December 31, 2020, after small and low-profit enterprises have completed the prepayment declaration in the remaining declaration period of 2020, they can defer the payment of the current enterprise income tax and postpone it until the first declaration period of 2021. Among them, individual industrial and commercial households that implement simple declarations will not be withheld individual income tax temporarily from May 1, 2020 to December 31, 2020, and will be deferred to the first declaration period in 2021.

8.	To support epidemic prevention and control- individual income tax relief

From January 1, 2020 to December 31, 2020,

(1)

The temporary subsidies and bonuses obtained by medical  personnel and epidemic prevention workers participating in epidemic prevention and control work in accordance with the standards set by the government shall be exempt from individual income tax. Government-regulated standards include subsidies and bonus standards set by governments at all levels. The temporary work subsidies and bonuses provided by the government at or above the provincial level for personnel participating in epidemic prevention and control shall be implemented mutatis mutandis.

(2)

The medicines,  medical supplies, and protective supplies (not including cash) given to individuals by units to prevent pneumonia caused by the coronavirus are not included in wages and salary income and are exempt from individual income tax.