Taxpayers are exempted from value-added tax, urban maintenance and construction tax, education surcharge and local education surcharge on income derived from the provision of public ****transportation services and living services, as well as the provision of courier collection and delivery services of essential living materials for residents.
Units and individual industrial and commercial households are exempted from value-added tax, consumption tax, urban maintenance and construction tax, education surcharge, and local education surcharge if they donate their self-produced, commissioned, or purchased goods for use in responding to the pneumonia outbreak caused by the new coronavirus infection through public welfare social organizations and state organs such as people's governments at or above the county level and their departments, or directly to hospitals undertaking the task of epidemic prevention and control.
Taxpayers are exempted from value-added tax (VAT) on income earned from providing movie projection services.
Taxpayers engaged in the distribution of second-hand vehicles are required to reduce the VAT levied on the second-hand vehicles acquired by them from 2% to 0.5% under the simplified method at the 3% levy rate.
Legal Basis:
Ministry of Finance and State Administration of Taxation Announcement No. 7 of 2021 Ministry of Finance and State Administration of Taxation Announcement on the Renewal of the Implementation of Preferential Policies on Partial Taxes and Fees for Responding to Epidemic Situation
Article 1 The Announcement of the Ministry of Finance and the State Administration of Taxation on the Policy of Supporting Individual Industrial and Commercial Enterprises on the Resumption of Work and Resumption of Business for the Purpose of Value-added Tax (VAT) (MOF General Administration of Taxation Announcement No. 13 of 2020) stipulates that the implementation period of the tax preferential policies is extended to December 31, 2021. Among them, from April 1, 2021 to December 31, 2021, small-scale VAT payers in Hubei Province shall be subject to a reduced VAT collection rate of 1% on taxable sales income to which the 3% collection rate applies; and shall be subject to a reduced VAT pre-payment rate of 1% on pre-paid VAT items to which the 3% pre-payment rate applies.
Secondly, the tax incentives stipulated in the Announcement of the Ministry of Finance and the State Administration of Taxation on the Policies of Supporting the Prevention and Control of the Pneumonia Epidemic Infected by the New Coronavirus (Announcement of the Ministry of Finance and the State Administration of Taxation No. 10 of 2020) and the Announcement of the Ministry of Finance and the State Administration of Taxation on the Policies of Supporting the Taxation of the Movie and Other Industries (Announcement of the Ministry of Finance and the State Administration of Taxation No. 25 of 2020), where the tax incentives have already expired, shall be extended to 2021. of the tax incentives, the implementation period shall be extended to December 31, 2021.
Article 3 The tax preferential policies stipulated in the Announcement of the Ministry of Finance and the State Administration of Taxation on Tax Policies Related to Supporting the Prevention and Control of the Pneumonia Epidemic Infected by a New Type of Coronavirus (Announcement of the Ministry of Finance and the State Administration of Taxation No. 8 of 2020), the Announcement of the Ministry of Finance and the State Administration of Taxation on Donation Tax Policies Related to Supporting the Prevention and Control of the Pneumonia Epidemic Infected by a New Type of Coronavirus (Announcement of the Ministry of Finance and the State Administration of Taxation No. 9 of 2020) have expired. Where the preferential policies have expired, the implementation period is extended to March 31, 2021.
Article 4 From January 1, 2021 to the date of issuance of this Announcement, taxes and fees that have been levied and should be reduced or exempted in accordance with the provisions of this Announcement may be credited against the taxes and fees that the taxpayers or contributors shall pay in the future or be refunded.