2020-06-12 17:27:25

The announcement included in Chinese Premier Li Keqiang’s annual Work Report states that China will reduce business expenses by over RMB 2.5 trillion this year, including RMB 500 billion in tax and fee cuts, in an effort to help the economy recovering from the downturn caused by the COVID-19 pandemic. The Chinese government will further reduce value-added tax (VAT) rates and pension insurance rates in 2020, and extend various preferential tax and fee policies until the end of 2020 for industries impacted by COVID-19, including public transportation, catering and hospitality, tourism and entertainment, and culture and sports. The due date for the Income Tax payable for 2019 for small enterprises and sole proprietors could be extended to next year (2021). However, they are required to file tax return for Prepayment of Income Tax in order to be qualified for extension.