Category

Preferential Tax Policies

Policies Basis

VAT and

Surcharges

Manufacturing enterprises of key guarantee materials for epidemic prevention and control can apply to the competent tax authorities for a refund of the incremental VAT retained credit in full amount on monthly basis. The incremental tax credits mentioned in this announcement refer to the newly increased ending tax credits compared to those as of end of December 2019.

Ministry of Finance General Administration of Taxation

Announcement No. 8 of 2020

Income obtained from transportation of key guarantee materials for the prevention and control of epidemic is exempt from VAT.

Income derived from providing public transportation services, living services, and rendering necessary living materials express delivery services to residents is exempt from VAT.

Enterprises and individual industrial and commercial households donate self-produced, consigned processing or purchased goods that will be used for coping with COVID-19 through non-profit social organizations and people's governments at or above the county level and other state organs, or directly to hospitals undertaking the task of epidemic prevention and control. Such donations are exempted from VAT, consumption tax, urban maintenance and construction tax, educational surcharge, and local educational surcharge.

Ministry of Finance General Administration of Taxation

Announcement No. 9 of 2020

EIT

Equipment newly purchased by manufacturing enterprises of key guarantee materials for epidemic prevention and control for expansion of production capacity is allowed to be recognized as current cost and deduct from taxable revenue at one time.

Ministry of Finance General Administration of Taxation

Announcement No. 8 of 2020

The longest carry-over period of the losses of enterprises in difficult industries affected by the epidemic in 2020 will be extended from 5 years to 8 years.

Enterprises donate cash and articles used to deal with COVID-19 through public welfare social organizations or people's governments at or above the county level and their departments, and the cash and the cost of articles are allowed to be deducted in full amount when calculating taxable income.

Ministry of Finance General Administration of Taxation

Announcement No. 9 of 2020

The enterprises directly donate the articles used to deal with COVID-19 to the hospital that undertakes the task of epidemic prevention and control, and the cost of articles is allowed to be deducted in full amount when calculating taxable income.

IIT

Individuals donate cash and articles used in response to the COVID-19 through public welfare social organizations or people’s governments at or above the county level and other state agencies, and the cash and articles are allowed to be deducted in full amount when calculating the taxable income.

Ministry of Finance General Administration of Taxation

Announcement No. 9 of 2020

Individuals donate directly to hospitals undertaking the epidemic prevention and control tasks to deal with the COVID-19, and such donations are

allowed to be deducted in full amount when calculating the taxable income.

Temporary work subsidies and bonuses obtained by medical personnel and epidemic prevention workers participating in epidemic prevention and control work in accordance with the standards prescribed by the government shall be exempt from individual income tax.

Ministry of Finance General Administration of Taxation

Announcement No. 10 of 2020

The physical products (excluding cash) distributed by enterprises to their staffs for the prevention of the COVID-19 are not included in wages and salaries and are exempt from individual income tax.

Implementation

Period

From January 1 to December 31, 2020

Ministry of Finance General Administration of Taxation

Announcement No. 28 of 2020