China Extends Tax Relief Policies to Year-End for Supporting Epidemic Prevention

The Ministry of Finance and the State Taxation Administration recently issued an announcement on the implementation deadline for tax policies for supporting epidemic prevention and control, ensuring supply and other tasks (Announcement No. 28 [2020]). In order to support epidemic prevention and control and provide financial relief to businesses in resuming operation, the implementation deadline of the following tax policies is now extended to 31 December 2020.

• Ministry of Finance and the State Taxation Administration Announcement No. 8 (2020) 
  
  Equipment purchased by manufacturers of key epidemic prevention and control supplies to expand production capacity are allowed a one-time deduction from pre-tax income

• Ministry of Finance and the State Taxation Administration Announcement No. 9 (2020) 
  
  Donations in cash or in kind by enterprises and individuals for the fight against Covid-19 through social welfare charitable organisations or state organs, including government above the county level, are allowed full deduction in the calculation of taxable income.                                                                                                                                            

• Ministry of Finance and the State Taxation Administration Announcement No. 10 (2020) 
  
  Temporary work subsidies and bonuses received by medical staff and epidemic prevention and control workers in accordance with government-prescribed standards for participation in epidemic prevention and control are exempt from individual income tax.

• Ministry of Finance and National Development and Reform Commission Announcement No. 11 (2020) 
  
  Medical device product registration fees are exempt for prevention and control products related to the new coronavirus that enter the medical device emergency approval process; drugs for treatment and prevention of new coronavirus infection that enter the special drug approval process are exempt from registration fees. The civil aviation development fund levied on airlines is exempted.

Source: Ministry of Finance