top of page

Summary of supporting measures against COVID-19

In order to provide a response to the COVID-19 outbreak, Central and local authorities and relevant departments have issued several measures, to relief enterprises and individuals greatly affected by the ongoing epidemic.

We summarize below the main measures that will be implemented during the period of control and prevention of the COVID-19 outbreak.


Tax

  • The deadline for the tax return in February has been postponed to February 28th nationwide, in order to grant enterprises enough and sufficient time to handle the tax issues after resuming work;

  • Enterprises greatly affected by the outbreak could apply for a deferral payment in accordance with the law for a maximum of three months;

  • Medical personnel and prevention workers involved in the outbreak control and prevention may be exempted from the individual income tax for bonuses and allowances received in respect of their activities;

  • The supply of medicines, medical and protective equipment provided to employees is exempted from the individual income tax

  • Qualified enterprises operating in the production of key materials could apply to receive a full refund of the incremental VAT from December 2019;

  • Enterprises providing transportation services for key materials for the control and prevention of the epidemic outbreak could be exempt from VAT and additional surcharges;

  • Enterprises providing certain essential living services and materials during the outbreak (i.e., public transportation services, living services and delivery services to residents) could be exempted from VAT and additional surcharges;

  • Enterprises purchasing equipment to expand the production of key materials for the prevention and control of epidemic outbreak are allowed to one-time deduction of such equipment.

  • Health authorities importing materials to be used directly in the prevention and control of epidemic outbreak are exempted from customs duties;

  • Donations from enterprises and individuals to public welfare organizations or state organs as the People’s Government bodies at or above the county level are deductible in the computation of the taxable income;

  • Donations from enterprises and individuals to hospitals responsible for the prevention and the control of the epidemic infections care deductible in the computation of the taxable income;

  • Free donations from working units, individuals and commercial households through public welfare social organizations and state organs, in order to respond to the epidemic pneumonia outbreak are exempted from VAT, consumption tax, and additional surcharges;