Ministry of Finance General Administration of Taxation Announcement No. 8 of 2020 2020-02-07
In order to further improve the prevention and control of pneumonia outbreaks of new coronavirus infections and support the development of relevant enterprises, the relevant tax policies are announced as follows:
1. For the key equipment for epidemic prevention and control, the production equipment newly purchased by the production enterprises to expand the production capacity is allowed to be deducted before the enterprise income tax.
(Zhongtian Commentary: At present, the equipment of less than 5 million can be allowed to be included in the current cost at one time, and depreciation is a temporary difference. This provision is icing on the cake and has limited practical significance.)
Second, the epidemic prevention and control key guarantee material production enterprises can apply to the competent tax authority for a full refund of the value-added tax incremental retention tax on a monthly basis.
The incremental tax credits mentioned in this announcement refer to the newly increased ending tax credits compared to the end of December 2019.
The list of key guarantee material production enterprises mentioned in Articles 1 and 2 of this announcement shall be determined by the development and reform departments at the provincial level and above, the industrial and information departments.
(Zhongtian Commentary: The refund of the incremental tax credit can alleviate the cash flow problem of related companies. It has very practical significance for companies with large equipment investment during the epidemic and can apply for it on a monthly basis.)
3. The taxpayers shall be exempt from value-added tax on the income obtained from the key guarantee materials for the prevention and control of epidemic transportation in taxpayers.
The specific scope of key guarantee materials for epidemic prevention and control shall be determined by the National Development and Reform Commission and the Ministry of Industry and Information Technology.
(Zhongtian Comments: VAT is a chain tax. The actual value of VAT exemption in non-final sales should not be significant, but considering that the epidemic prevention and control materials are generally transported to hospitals, the hospital ’s medical income is VAT Tax-free income does not require input tax, so the effect of this tax reduction is expected to be more obvious.)
Fourth, the longest carry-over period of the losses in 2020 for enterprises in difficult industries affected by the epidemic will be extended from 5 years to 8 years.
Enterprises in difficult industries, including transportation, catering, accommodation, and tourism (referring to the two categories of travel agencies and related services, and management of scenic spots), 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).
(Zhongtian Comments: The above-mentioned industries should be the ones with the greatest impact on the epidemic. It is a good policy to extend the loss. The tax return for the loss amount has been revised in 2019, and you can fill in the 10-year loss-making period. , So there is no need to change the filling of the relevant tax returns, but corporate financial personnel need to pay attention to this policy.)
V. Income from taxpayers providing public transportation services, living services, and providing residents with necessary living materials express delivery services is exempt from VAT.
The specific scope of public transportation services shall be implemented in accordance with the "Provisions on the Relevant Issues in the Pilot Change of Business Tax to VAT" (Caishui [2016] No. 36).
The specific scope of life services and express delivery services shall be implemented in accordance with the "Sales Services, Intangible Assets, Real Estate Notes" (Cai Shui [2016] No. 36).
(Zhongtian Comments: How to identify whether the service of express delivery is "provide necessary living materials for residents" is a prerequisite. Corporate financial personnel should combine the company's internal control management system to separately account and distinguish clearly.)
VI. This announcement will be implemented from January 1, 2020, and the deadline will be announced separately depending on the epidemic situation.
Ministry of Finance
State Administration of Taxation
February 6, 2020
Announcement on Donation Tax Policy Supporting the Prevention and Control of New Coronavirus Infection Pneumonia
Ministry of Finance General Administration of Taxation Announcement No. 9 of 2020 2020-02-07
In order to support the prevention and control of pneumonia outbreaks of new coronavirus infections, the tax policy on donations is now announced as follows:
1. Enterprises and individuals donate cash and articles used in response to the pneumonia epidemic of new coronavirus infection through public welfare social organizations or people's governments at or above the county level and other departments, and are allowed to deduct the full amount when calculating the taxable income .
(Zhongtian Comments: This article belongs to the old regulation of full deduction of donations, and it is not subject to the 12% profit limit of the year of the enterprise, but the enterprise should pay attention to the donation object.)
2. Enterprises and individuals donate directly to hospitals that undertake epidemic prevention and treatment tasks to deal with the pneumonia epidemic of the new coronavirus infection, and it is allowed to deduct the full amount when calculating the taxable income.
Donors handle pre-tax deductions based on donation acceptance letters issued by hospitals that undertake epidemic prevention and control tasks.
(Zhongtian Comments: The donation target has been expanded, but enterprises should pay attention to donate to the hospitals that undertake obligations, and some local hospitals have not undertaken the task of epidemic prevention.)
3. Units and individual industrial and commercial households will use self-produced, entrusted processed or purchased goods through non-profit social organizations and people's governments at or above the county level and other state organs, or directly to hospitals that undertake epidemic prevention and control tasks. Those who respond to the pneumonia epidemic of new coronavirus infection are exempted from value-added tax, consumption tax, urban maintenance and construction tax, education surcharge, and local education surcharge.
(Zhongtian Commentary: Compared with cash donations, the major medical institutions lacked medical supplies such as masks and protective clothing. This article stipulates the exemption of the relevant turnover tax. Because the medical income of the hospital is tax-free income, VAT input tax is not required, so this article has strong practical significance. At the same time, it should be noted that corporate income tax does not make provisions, whether corporate income tax should be treated as sales, according to the "State Administration of Taxation on the issue of corporate income tax treatment "The provisions of Article 2 of Guoshuihan [2008] No. 828 should still be regarded as sales, but at the same time it can be confirmed that the cost of deemed sales will not actually generate the taxable amount of corporate income tax, so no additional regulations will be made.)
IV. Donations received by state organs, non-profit social organizations and hospitals that undertake epidemic prevention and control tasks should be specifically used to deal with the pneumonia epidemic of new coronavirus infection, and cannot be used for other purposes.
V. This announcement will take effect on January 1, 2020, and the deadline will be announced separately depending on the epidemic situation.
Ministry of Finance
State Administration of Taxation
February 6, 2020
Announcement on Supporting the Prevention and Control of Pneumonia Epidemic Infected by New Coronavirus
Ministry of Finance General Administration of Taxation Announcement No. 10, 2020 2020-02-06
To support the prevention and control of pneumonia outbreaks of new coronavirus infections, the following announcement on the relevant personal income tax policy is as follows:
I. Medical staff and epidemic prevention workers participating in epidemic prevention work shall be exempted from personal income tax on temporary work subsidies and bonuses obtained according to the standards prescribed by the government. Government regulations include subsidies and bonus standards stipulated by governments at all levels.
The temporary work subsidies and bonuses prescribed by the people's governments at and above the provincial level for personnel involved in epidemic prevention and control shall be implemented by reference.
(Zhongtian Comments: An additional special deduction has been added, which requires enterprises, especially financial personnel in administrative institutions to distinguish clearly the amount of payments.)
2. The physical objects (excluding cash) such as medicines, medical supplies, and protective articles issued by the unit to individuals for the prevention of pneumonia caused by new coronavirus are not included in wages and salaries, and are exempt from personal income tax.
(Zhongtian Commentary: During the epidemic prevention period, the medicines, medical supplies and protective products issued by the enterprise, etc. We believe that they should belong to the labor protection supplies related to the normal production and operation of the enterprise, and are not within the scope of personal income tax. This is clear here. . Therefore, the use of related items is best purchased by the enterprise. If you directly issue cash to employees, you will still be subject to personal income tax.)
3. This announcement will take effect on January 1, 2020, and the deadline will be announced separately depending on the epidemic situation.