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National authorities, together with the Ministry of Finance (MOF), the State Taxation Administration (STA) and the general Administration of Customs (GAC), along with provincial and local governments, have reacted rapidly to COVID-19. On the tax administration front, the STA prolonged February’s statutory tax filing deadline to February 28. This can be further extended by local tax authorities the place the outbreak is especially serious (such as in Hubei province). Lewis Lu of KPMG discusses how the Chinese government has moved to assist businesses affected by the ongoing COVID-19 outbreak. The exemption just isn’t time limited; it’s understood to be in place until COVID-19 is brought beneath management. At a more targeted level, particular company revenue tax (CIT) and VAT incentives have been introduced for enterprises engaged in producing key supplies related to COVID-19 safety and containment (e.g. masks, protective clothes). They’ve set out a string of tax reliefs and preferential measures to help enterprises and citizens.

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