Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 31
China
7
8
Tax
•
As of February 14 2020, the Ministry of Finance, the State Taxation Administration
and the General Administration of Customs have jointly issued several circulars to
support the epidemic’s prevention and control, prompt the relevant enterprises’
development and lighten the tax burden of the taxpayer affected by this epidemic.
According to the contents specified in the relevant circulars, the tax policies can be
categorized into the following five categories: 1. Corporate Income Tax (“CIT”); 2.
Individual Income Tax (“IIT”); 3. Valued-Added Tax (“VAT’), Consumption Tax (“CT”)
and other taxes; 4. Imported Materials; and 5. Tax Administration and Collection.
Below are selected policies.
•
(CIT) Enterprises significantly affected by the epidemic: for the tax loss incurred in
2020, the maximum carry forward period is increased from five to eight years.
•
(IIT) Medical staff and anti-epidemic workers participating in epidemic prevention
and control: the temporary subsidies and bonuses obtained according to the
standards specified by governments are exempt from IIT.
•
(VAT) Revenue derived from providing public transportation services, consumer
services and collection and delivery services for residents’ daily necessities is
exempted from VAT.
•
(Tax Administration and Collection) Taxpayers and withholding agents subject to
monthly tax filing (Nationwide): the statutory time limit for tax filing in February
2020 will be extended to February 24, 2020. Taxpayers and withholding agents
affected by the epidemic who still face difficulties in filing tax returns after the
said time limit extension in February 2020, may apply for a further extension in
accordance with the law.
•
Summary of the PRC Tax Regulations issued in response to the COVID-19 Outbreak.
•
Since the outbreak of COVID-19, China’s provinces, autonomous regions and
province-level municipalities have successively launched public health emergency
plans in their respective administrative regions and taken actions to contain
COVID-19. Local governments in regions such as Zhejiang, Gansu, Anhui and
Shanghai have set out requirements that enterprises should prepare emergency
plans for the prevention and control of COVID-19 in the form of notices on the
prevention and control of COVID-19 and the resumption of work. Some notices
have emphasized that the responsible person in the enterprise should lead the
preparation work personally.
•
There are various factors to consider in drafting an emergency plan, namely, (i)
regulatory requirements may differ depending on different regions (for instance,
we have noticed that some local governments have publicized templates of the
emergency plans specifically for enterprises’ use, while other local governments
have not), (ii) regulatory requirements may vary among different industries, and (iii)
business features and characteristics may differ among enterprises.
•
For enterprises that are resuming operations: how to prepare an emergency plan
for the prevention and control of Novel Coronavirus Pneumonia.
Has any new
legislation been
introduced in light
of COVID-19?
Company
law matters
Have any measures
been put in place
to accommodate
social distancing
(such as remote
general meetings)?
Government measures in key jurisdictions
31