ANNOUNCEMENT 13 Apr 2019

April 13th, 2019 - The Chinese government announced a preferential tax policy.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

PRC State Taxation Administration, April 13th, 2019. (财政部 税务总局 国家发展改革委 生态环境部公告2019年第60号 关于从事污染防治的第三方企业所得税政策问题的公告)
http://www.chinatax.gov.cn/n810341/n810755/c4292184/content.html

Inception date: 01 Jan 2019 | Removal date: 31 Dec 2021

Tax or social insurance relief

On April 13th, 2019, the Chinese State Taxation Administration, along with three other ministries, jointly released Announcement 2019/60 (hereafter, 'Annnouncement').

The Announcement brought into force a 10% corporate tax reduction, from the standard 25 to 15%, for so-called 'third-party' firms whose business focuses on 'pollution prevention and control'.

Firms must be indigenous; foreign-owned firms cannot benefit from the scheme.

60% of a firm's income must come from such business activities in order to be eligible for the treatment.

The Announcement states the preferential treatment will be in effect retroactively, from Jaunary 2019, until the end of 2021.

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