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Related articles:Can I Ask for a Rent Reduction?
Medical Masks & the Law
Good News for Struggling Companies
1. Extension of carry-over period for lossesSince 1 January 2020, the maximum carry-over period for losses incurred in 2020 by companies in difficult industries that are seriously affected by the epidemic shall be extended from five years to eight years.Companies in difficult industries include four categories, namely:a)     transportation;b)     catering;c)     accommodation; andd)     tourism.The latter one including two categories, namely travel agency and the relevant services and administration of scenic spots. The specific judgment standards of which are subject to the current Industrial Classification for National Economic Activities. The main business income of companies in difficult industries shall account for more than 50% of their total income (excluding non-taxable income and investment income) in 2020.
1.202011202058202050%

Related regulations:
(1) Announcement of the Ministry of Finance and the State Taxation Administration on Relevant Tax Policies to Support the Prevention and Control of the Pneumonia Epidemic Caused by Novel Coronavirus Infection ([2020] No.8)(2) Announcement of the State Taxation Administration on Matters Concerning the Administration of Tax Levy in Support of Prevention and Control of Novel Coronavirus-infected Pneumonia Epidemic ([2020] No. 4)1 20208220204
2. Reduction or exemption of VAT
From 1 March 2020 to 31 May 2020, for small-scale taxpayers in Hubei Province, the taxable sales revenue levied at a levy rate of 3% is exempted from VAT.From 1 March to 31 May 2020, for small-scale VAT taxpayers in other provinces, autonomous regions and municipalities directly under the control of the Central Government (excluding Hubei Province), the 1% levy rate shall be applied to the collection of the instead of 3%.2.2020315313%2020315313%1%
Related regulations:(1) Announcement of the Ministry of Finance and the State Taxation Administration on Value-added Tax Policies for Supporting Individual Businesses in Resumption of Business ([2020] No.13)(2) Announcement of the State Taxation Administration on Taxation Matters to Support Individual Businesses in Resumption of Business ([2020] No.5)1 2020132202053. Less contribution for social insurance
a) Reduction or exemption of employers contribution for pension, unemployment and work-related injuriesFrom February 2020, employers participating in the social insurance scheme in Hubei Province may be exempted from the above mentioned three types of social insurance contributions, with the exemption period not exceeding five months.From February 2020, all provinces, autonomous regions, municipalities directly under the control of the Central Government (excluding Hubei Province, hereinafter collectively referred to as the "Provinces") may exempt small, medium and micro companies from the three types of social insurance contributions, with the exemption period not exceeding five months; large companies may be allowed to pay half of the three types of social insurance contributions, with the exemption period not exceeding three months.Companies affected by epidemic which encounter serious difficulties in operation may apply for deferred payment of social security premiums; the deferred period shall in principle not exceed six months, and late payment fines shall not be imposed during the deferred period.b) Reduction or exemption of social insurances contribution for individual businessesFrom February 2020, the employers' contribution to three types of social insurances paid (pension, unemployment and work-related injury) by individual businesses insured as companies shall be exempted for a period of no longer than five months.c) Reduction of employers contribution for medical insuranceFrom February 2020, all provinces, autonomous regions, centrally-administered municipalities may, under the prerequisite of ensuring medium- and long-term balance of income and expenditure of the fund, implement 50% reduction of employers' contributions of medical insurance for employees, with the reduction period not exceeding five months.3. 12020252020253622020253202025Related regulations:
(1) Notice of the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration on Phased Social Insurance Reduction and Exemption for Companies (Ren She Bu Fa [2020] No.11)(2) Notice of State Taxation Administration on Implementation of Enterprise Social Security Premium Reduction and Exemption Policies in Phases (Shui Zong Han [2020] No. 33)(3) Guiding Opinions of the National Healthcare Security Administration, the Ministry of Finance and the State Taxation Administration on the Phased Reduction of the Basic Medical Insurance Contributions for Employees (Yi Bao Fa [2020] No.6)1 202062 2020113202033
4. Rental reduction or exemptionEncouraging rental reduction or exemption for individually-owned businesses by lessors through reduction or exemption of urban land use tax. Details shall be found in local policy.
4.


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Supportive Policies for Companies

Tap "LegalTips" to follow us

Related articles:Can I Ask for a Rent Reduction?
Medical Masks & the Law
Good News for Struggling Companies
1. Extension of carry-over period for lossesSince 1 January 2020, the maximum carry-over period for losses incurred in 2020 by companies in difficult industries that are seriously affected by the epidemic shall be extended from five years to eight years.Companies in difficult industries include four categories, namely:a)     transportation;b)     catering;c)     accommodation; andd)     tourism.The latter one including two categories, namely travel agency and the relevant services and administration of scenic spots. The specific judgment standards of which are subject to the current Industrial Classification for National Economic Activities. The main business income of companies in difficult industries shall account for more than 50% of their total income (excluding non-taxable income and investment income) in 2020.
1.202011202058202050%

Related regulations:
(1) Announcement of the Ministry of Finance and the State Taxation Administration on Relevant Tax Policies to Support the Prevention and Control of the Pneumonia Epidemic Caused by Novel Coronavirus Infection ([2020] No.8)(2) Announcement of the State Taxation Administration on Matters Concerning the Administration of Tax Levy in Support of Prevention and Control of Novel Coronavirus-infected Pneumonia Epidemic ([2020] No. 4)1 20208220204
2. Reduction or exemption of VAT
From 1 March 2020 to 31 May 2020, for small-scale taxpayers in Hubei Province, the taxable sales revenue levied at a levy rate of 3% is exempted from VAT.From 1 March to 31 May 2020, for small-scale VAT taxpayers in other provinces, autonomous regions and municipalities directly under the control of the Central Government (excluding Hubei Province), the 1% levy rate shall be applied to the collection of the instead of 3%.2.2020315313%2020315313%1%
Related regulations:(1) Announcement of the Ministry of Finance and the State Taxation Administration on Value-added Tax Policies for Supporting Individual Businesses in Resumption of Business ([2020] No.13)(2) Announcement of the State Taxation Administration on Taxation Matters to Support Individual Businesses in Resumption of Business ([2020] No.5)1 2020132202053. Less contribution for social insurance
a) Reduction or exemption of employers contribution for pension, unemployment and work-related injuriesFrom February 2020, employers participating in the social insurance scheme in Hubei Province may be exempted from the above mentioned three types of social insurance contributions, with the exemption period not exceeding five months.From February 2020, all provinces, autonomous regions, municipalities directly under the control of the Central Government (excluding Hubei Province, hereinafter collectively referred to as the "Provinces") may exempt small, medium and micro companies from the three types of social insurance contributions, with the exemption period not exceeding five months; large companies may be allowed to pay half of the three types of social insurance contributions, with the exemption period not exceeding three months.Companies affected by epidemic which encounter serious difficulties in operation may apply for deferred payment of social security premiums; the deferred period shall in principle not exceed six months, and late payment fines shall not be imposed during the deferred period.b) Reduction or exemption of social insurances contribution for individual businessesFrom February 2020, the employers' contribution to three types of social insurances paid (pension, unemployment and work-related injury) by individual businesses insured as companies shall be exempted for a period of no longer than five months.c) Reduction of employers contribution for medical insuranceFrom February 2020, all provinces, autonomous regions, centrally-administered municipalities may, under the prerequisite of ensuring medium- and long-term balance of income and expenditure of the fund, implement 50% reduction of employers' contributions of medical insurance for employees, with the reduction period not exceeding five months.3. 12020252020253622020253202025Related regulations:
(1) Notice of the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration on Phased Social Insurance Reduction and Exemption for Companies (Ren She Bu Fa [2020] No.11)(2) Notice of State Taxation Administration on Implementation of Enterprise Social Security Premium Reduction and Exemption Policies in Phases (Shui Zong Han [2020] No. 33)(3) Guiding Opinions of the National Healthcare Security Administration, the Ministry of Finance and the State Taxation Administration on the Phased Reduction of the Basic Medical Insurance Contributions for Employees (Yi Bao Fa [2020] No.6)1 202062 2020113202033
4. Rental reduction or exemptionEncouraging rental reduction or exemption for individually-owned businesses by lessors through reduction or exemption of urban land use tax. Details shall be found in local policy.
4.


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