China

Law and regulation of Covid-19 tax relief in China

Manufacturers of key epidemic control supplies (“Key Supplies”) entitled to full refund of incremental uncredited input VAT
Revenues from transporting Key Supplies exempt from VAT
Revenues from providing public transportation services, lifestyle services and courier services delivering the life necessities are exempt from VAT
Small-scale VAT payer subject to a low VAT levy rate of 1% through May 2020
Deferral of filing deadlines

Industries severely affected by the epidemic allowed to carry forward the tax loss of 2020 for 8 years
Cost of donation of Key Supplies are fully deductible
Cost of new equipment acquired by enterprises producing Key Supplies to enhance the production capacity can be deducted in a one-off manner without depreciation over the use life
Deferral of filing deadlines

Cost of donation of cash or Key Supplies are fully deductible
Temporary working allowances and bonuses obtained by medical workers in epidemic prevention and control are exempt from Individual Income Tax (“IIT”)
Medicines, healthcare supplies and protection supplies offered by the employers to the individuals for epidemic prevention are exempt from IIT
Exemption or half-reduction of social security contributions for no more than 5 months
Deferral of filing or contribution deadlines

Foreign-donated supplies used to prevent and control the epidemic can be exempt from import taxes