On May 7, 2020, China’s State Taxation Administration (STA) and Ministry of Finance (MOF) announced the extension of the preferential value-added tax (VAT) policy for small-scale taxpayers to December 31, 2020 (see STA Announcement  No.24).
This means that the preferential VAT policy addressed in the STA Announcement  No.13, which was rolled out earlier on February 28 and was supposed to expire on May 31, 2020 – will thus continue benefiting small-scale VAT taxpayers until the end of this year.
The policy, now effective from March 1, 2020 to December 31, 2020, is applicable to small-scale taxpayers nationwide. Measures are slightly different for taxpayers inside and outside Hubei province, the epicenter of the coronavirus outbreak.
The announcements are aimed to support individual businesses and micro and small firms to carry on businesses amid the COVID-19 outbreak. Extending the VAT relief for another seven months will reduce financial burdens of small business and may even promote employment.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at email@example.com.
We also maintain offices assisting foreign investors in Vietnam, Indonesia, Singapore, The Philippines, Malaysia, and Thailand in addition to our practices in India and Russia and our trade research facilities along the Belt & Road Initiative.
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