ANNOUNCEMENT 30 Sep 2019
September 30th, 2019 - The Chinese government announced a sector-specific preferential tax policy.
NUMBER OF INTERVENTIONS
PRC State Taxation Administration, September 30th, 2019. (财政部 税务总局公告2019年第87号 关于明确生活性服务业增值税加计抵减政策的公告)
On September 30th, 2019, the Chinese State Taxation Administration released Announcement 2019/87 (hereafter, 'Announcement'), which introduced an extra 15% VAT tax credit for those operating in any industry that comes under the definition of 'life services'.
To be eligible for the treatment, 50% of the firm's income must come from activities in the 'life services' industry.
The policy is to be in effect from October 1st, 2019 until December 31st, 2021.
'Life services' firms are defined in Chinese law as firms who provide services, that are 'provided to meet the daily needs of urbal and rural citizens, including cultural and sports services, education and medical services, tourism and entertainment services, catering and accommodation services, daily services for residents and other living services', hence the broad sectoral taxonomy of this measure.