China has declared additional tax relief measures due to Coronavirus epidemic. These measures are following:

  • An exemption from consumption tax, VAT and import duties on imported of goods and equipment donated for Coronavirus epidemic;
  • Allowed deduction of the cost of equipment to expand production capacity for goods and instruments used for Coronavirus epidemic;
  • An extended loss carry forward period from 5 years to 8 years in the transportation, hotel, restaurant, and tourism sectors;
  • A VAT exemption on transportation of goods for outbreak prevention and on transportation, courier, and other services for essential living supplies, with a full refund of excess input tax to be provided;
  • Donations in cash or in kind for the prevention and control of the epidemic are allowed to be fully deducted for corporate income tax purpose.

The exemption on imports applies from 1 January to 31 March 2020, while the other measures apply from 1 January 2020 for an indefinite period.