Government measures in key jurisdictions 3rd edition final - Flipbook - Page 38
China
Tax
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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
: 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.
•
On May 29, 2020, the State Taxation Administration announced a policy that will allow small
enterprises (as defined in the State Administration of Taxation Announcement [2019] No. 2) and
businesses owned by individuals to delay payment of income tax for the time period from May 1,
2020 to December 31, 2020 until 2021.
•
Summary of the PRC Tax Regulations issued in response to the Covid-19 Outbreak
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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)?
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Government measures in key jurisdictions