Tax policies unveiled to support battle against virus: Ministries
 updatetime:2020-02-07 23:57:00   Views:0

Individual income tax is exempted from temporary work subsidies and bonuses for medical staff and other personnel, who fight for epidemic prevention and control, starting from Jan 1, ministries announced on Thursday.

China’s Ministry of Finance and State Taxation Administration jointly announced that excluding cash, physical objects, such as medicine, medical supplies and protective supplies to prevent pneumonia from new coronavirus infections, are not included in wages and salaries and are exempt from individual income tax.

Full tax deductions are exempted for donations by enterprises and individuals directly or through nonprofit organizations and governments above the county level to hospitals responsible for the epidemic prevention and control.

Value-added tax, consumption tax, urban maintenance and construction tax, education surcharges, and local education surcharges are exempted from goods produced, commissioned to process or purchased by units and private businesses.

Losses logged in 2020 for companies in the transportation, catering, accommodation and tourism sectors can be carried over to an extended maximum period of eight years, China's finance ministry and taxation watchdog said.

People working in the transportation, life service and daily necessities delivery service sectors will be exempted from the value-added tax, and airline payment to the government's civil aviation development fund is also waived, according to the new policy.

The expiration date of the tax policies taking effect on Jan 1 will be decided later based on the epidemic situation, according to the statements.

Web Editor:MXJ