After the outbreak of NCP, according to the requirements of CPC Anhui Provincial Committee， Anhui Provincial Government and State Tax Administration, Anhui Provincial Tax Service has set up leading group against epidemic, clarifying tax policies, introducing 17 measures to better implement the related tax policy and improve tax paying service, and asking all members in Anhui’s tax system to work harder in the anti-epidemic battle. The Ministry of Finance and State Tax Administration issued the NO.8, No.9 and No.10 Announcement on February 6 introducing the tax policies supporting NCP prevention and control.
The policies and measures released are mainly in the following 6 areas:
1. Ensure NCP prevention and control supplies. The enterprises producing key supplies for the NCP prevention and control are given one-time deduction and full refund of incremental VAT credits prior to income tax deduction for purchasing new equipment to expand production capacity (after January 1, 2020). Taxpayers are exempted from VAT on income from transportation of key supplies for the NCP prevention and control.
2. Support medical treatment. The medical services that are provided by medical institutions and entrusted third-party medical institutions shall be exempt from value added tax, real estate tax and urban land use tax. Subsidies, bonuses as well as medical supplies and protective equipment of the anti-epidemic medical staffs shall be exempt from individual income tax.
3. Support the development of scientific products for NCP prevention and control. The research institutions that produce eligible drugs, reagents and vaccines applied for NCP prevention & control shall be exempt from relevant taxes.
4. Support public donations. Minimum income tax threshold of NCP prevention and control donations will be raised, the related tax will be exempted.
5. Support enterprises in difficulty-ridden industries. The maximum carry-over period for the losses incurred by enterprises in difficulty-ridden industries greatly affected by the NCP in 2020, including those in transportation, catering, accommodation and tourism, will be extended from 5 years to 8 years. Taxpayers are exempted from VAT on income from provision of public transportation services, living services, and delivery services for essential living supplies to residents. Taxpayers affected by the NCP could be reduced or exempted from real estate tax and urban land use tax in accordance with law if it is too much of a burden for them.
6. Ensure good services. Taxpayers who have difficulties in tax declaration within the statutory time limit due to the impact of the NCP may apply for further extension in accordance with law. Those who are eligible for tax deferral shall be granted with tax deferral in accordance with law. Non-contact tax and fee payment should be greatly encouraged. Safety prevention shall be strengthened during tax and fee payment.