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National authorities, including the Ministry of Finance (MOF), the State Taxation Administration (STA) and the final Administration of Customs (GAC), along with provincial and native governments, have reacted shortly to COVID-19. On the tax administration front, the STA extended February’s statutory tax filing deadline to February 28. This may be additional prolonged by local tax authorities where the outbreak is especially critical (akin to in Hubei province). Lewis Lu of KPMG discusses how the Chinese government has moved to assist businesses affected by the continued COVID-19 outbreak. The exemption just isn’t time limited; it is understood to be in place till COVID-19 is introduced beneath control. At a more targeted stage, particular corporate earnings tax (CIT) and VAT incentives have been introduced for enterprises engaged in producing key supplies associated to COVID-19 protection and containment (e.g. masks, protective clothing). They’ve set out a string of tax reliefs and preferential measures to support enterprises and citizens.

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