In order to further prevent and control the pneumonia outbreaks, support the development of relevant enterprises, the Ministry of Finance and Administration of Taxation announced the following measures on 6th February 2020:
1. The relevant equipment newly purchased by manufacturing enterprises producing key protection materials for the epidemic prevention and control can be fully deducted in the current period;
2. Manufacturing enterprises producing key protection materials for epidemic prevention and control may apply to the competent tax authorities on a monthly basis for a full refund of the incremental value-added tax credits. The incremental tax credit refers to the tax credit amount increased from December 2019. The list of manufacturing/production enterprises producing key protection materials for epidemic prevention and control mentioned are determined by the provincial departments of the Ministry of Industry and Information Technology;
3. Taxpayer shipping prevention materials are exempted from value-added tax. These key materials for prevention and control shall be determined by the National Development and Reform Commission and the Ministry of Industry and Information Technology;
4. The longest carry-over period of losses incurred by enterprises in difficult industries affected by the epidemic in 2020 is extended from 5 to 8 years. Enterprises in difficult industries, including transportation, catering, accommodation, and tourism (as travel agencies and related services, scenic area management), the specific judgment standards are implemented in accordance with the current National Economic Industry Classification. The main business income of enterprises in difficult industries in 2020 must account for more than 50% of the total income (excluding non-taxable income and investment income);
5. Income of enterprises providing public transportation services and living services to taxpayers, as well as the delivery of express delivery services for essential living materials to residents, shall be exempted from value-added tax. The specific scope of public transport services shall be carried out in accordance with the "Provisions on the Pilot Issues of Changing Business Tax to Value-added Tax Pilot" (Caishui  No. 36), for life services and express delivery services shall be carried out in accordance with the "Sales Services, Intangible Assets, Real Estate Notes" (Caishui  No. 36).
The announcement will take effect retroactively from the 1st of January 2020 and the deadline will be announced separately depending on the situation of the epidemic.
30 june 2020
24 june 2020