n Guidelines for COVID-19 prevention and control policy
Support protective treatment | 1. Individual income tax will be exempted for temporary work subsidy and bonus for COVID-19 prevention and control as stipulated by the government. 2.Medical protective articles for prevention of COVID-19 issued by individuals are exempt from personal income tax. |
Support material supply | 3. For the key guarantee material production enterprises of COVID-19 prevention and control, full refund of VAT incremental credit tax. 4. Tax payers provide key guarantee for COVID-19 prevention and control, and the transportation income of materials is exempted from VAT 5. The income from taxpayers providing public transportation services, living services and express delivery services of residents' essential living materials is exempt from VAT. 6. For enterprises producing key materials for COVID-19 prevention and control to expand production capacity and purchase equipment, one-off deduction of enterprise income tax before tax is allowed. 7. The import of materials directly used for COVID-19 prevention and control organized by health authorities shall be exempted from customs duties. |
Encourage public welfare donation | 8. Cash and articles donated by public welfare social organizations or the people's governments and their departments at or above the county level are allowed to deduct the full amount of enterprise income tax or individual income tax before tax. 9. Direct donation of COVID-19 response items to hospitals undertaking COVID-19 prevention and control tasks is allowed to be deducted in full before enterprise income tax or individual income tax. 10. The goods donated free of charge are exempt from value-added tax, consumption tax, urban maintenance and construction tax, education surcharges and local education surcharges. 11. Expand the scope of tax-free import of donations. |
Support resumption of work and production | 12. The longest carrying forward period of losses of enterprises in difficult industries affected by the epidemic situation in 2020 will be extended to 8 years. |
（Resource Document-issuing agency：State Administration of Taxation、Published date：2020.03.13、File name：”Guidelines for COVID-19 prevention and control policy”）
n Guidelines for supporting SMEs COVID-19 policy
Increase financial and tax support | 1. Increase financial and tax support for key enterprises | 1. a) Set up a special loan of 300 billion yuan to support financial institutions to provide preferential loans to key guarantee enterprises for epidemic prevention and control by means of refinancing. The central government will discount 50% of the loan interest rate actually obtained by enterprises, and encourage local finance to give further support. b) For the equipment newly purchased by the production enterprises of key guarantee materials for COVID-19 prevention and control to expand the production capacity, it is allowed to include in the current cost at one time, deduct it before the enterprise income tax, and apply to the competent tax authorities for full refund of the incremental VAT allowance on a monthly basis. c) The income obtained by taxpayers in transporting key materials for COVID-19 prevention and control shall be exempted from VAT. |
2. Increase financial and tax support for small and medium-sized enterprises seriously affected by the COVID-19 | 2. a) Reduce the VAT collection rate of small-scale taxpayers by stages (from March to May) from 3% to 1% (free in Hubei). b) To further extend the tax declaration period, the maximum carrying forward period of enterprises in transportation, catering, accommodation and tourism industries in 2020 will be extended from 5 years to 8 years. c) Where conditions permit, local taxes such as property tax, urban land use tax, and enterprise related administrative and institutional fees may be reduced or remitted in accordance with regulations. d) Where conditions permit, special relief funds can be set up to increase support for small and medium-sized enterprises seriously affected by the COVID-19. | |
3. Strengthen government procurement support and debt clearing | 3. a) Government procurement can be tilted to key production enterprises of COVID-19 prevention materials and timely payment of procurement funds. b) For small and medium-sized enterprises affected by the COVID-19, purchasers are encouraged to give priority to purchasing their products and services under the same conditions. c) State organs, institutions and state-owned enterprises shall not, for any reason, increase the amount owed to small and medium-sized enterprises and private enterprises. | |
4. Promoting rent reduction and exemption for enterprises | 4. Promote state-owned assets business Housing enterprises to rent small and medium-sized enterprises to reduce rent periodically, guide and encourage the park, incubator, business buildings and other market operators to reduce rent, property management and other expenses for the leased small and medium-sized enterprises, and give subsidies to the owners of private houses and platform enterprises that make profits from small and micro enterprises. |
