Tax Preferential Policies

Notice on Tax Policies Supporting the Prevention and Control of COVID-19 was jointly issued by the Ministry of Finance and State Taxation Administration on February 6, 2020. According to this notice, the longest carry-over period of losses is extended to 8 years from 5 years for enterprises in difficult industries dramatically affected by the epidemic and suffering losses in year 2020. Furthermore, income derived from life services, including tourism services, is exempt from VAT. Enterprises enjoying the VAT exemption policy shall be exempted from urban construction tax, educational surcharge, and local educational surcharge.

Preferential Policies on Social Insurance and Housing Provident Fund

The table below is a summary of the different social insurance and housing provident fund deduction or deferral policies:

Items	Applicable Period	Applicable Enterprises	Supporting Methods	Actively Apply or Not
Housing Provident Fund	March to June	All Enterprises	Deferred Payment	Yes
Basic Medical Insurance Borne by Enterprises	February to June	All Enterprises	Halved	No
Basic Pension Insurance, Injury Insurance and Unemployment Insurance Borne by Enterprises	February to April	Large-size Enterprises	Halved	No
	February to June	SME	Exempted	No
	February to November	Enterprises satisfied with certain conditions	Deferred Payment	Yes

Preferential Policies on Subsidy for Post Stabilization

Eligible enterprises can apply for subsidy for stabilizing jobs, which includes subsidy for stabilizing jobs with training and temporary post subsidy. The maximum training subsidy is not more than RMB3,000 per employee. The standard for temporary post subsidy is RMB1,540 per employee. The deadline for application of subsidy for stabilizing jobs with training and temporary post subsidy is August 31, 2020.

Enterprises applying for " training subsidy" shall meet the following conditions:

• Small and medium-sized enterprises attending social insurance program in key industries that meet the functional positioning of Beijing, such as technological innovation, urban operation guarantee, and life service industries.
• Due to the impact of epidemic, the production and operating income from February to April 2020 decreased by 80% or above (inclusive).
• Enterprise needs to apply to be certified as the small and medium-sized enterprises in key industries by the local government.

For more details about the application and certification, it is recommended to check with the district government where the enterprise is registered.

See also:
Setting up a Foreign Invested Travel Agency in Beijing - Fees and Procedures