China Extends Multiple Tax and Fee Incentives Until 2027

In a recent move, China’s Ministry of Finance and the State Administration of Taxation have announced the extension of several tax and fee incentives, effective until 2027. Let’s explore some key highlights:

Heating Industry in the “Three North” Region:

  • Extended tax policies for heating enterprises in the “Three North” region.
  • Exemption from value-added tax (VAT) for heating fees charged by heating enterprises to residents.
  • Exemption from property tax and urban land-use tax for the buildings and land used for heating in the region.
  • Policies in effect until the end of the heating season in 2027.

Financial Institutions:

  • Continued implementation of VAT exemption for interest income from agricultural loans issued by financial institutions to farmers.
  • Policies in effect until December 31, 2027.

Enterprise Restructuring and Mergers:

  • Continued implementation of deed tax exemptions for enterprise and institution restructuring and mergers.
  • Exemptions from land value-added tax for specified enterprise restructuring activities.
  • Policies applicable until December 31, 2027.

Railway Construction Investors:

  • Announcement of tax policies regarding interest income from railway bonds issued between 2024 and 2027.
  • 50% reduction in enterprise income tax for corporate investors.
  • Individual income tax reduction for individual investors.
  • Policies applicable to bonds issued from 2024 to 2027.

Specialized Products for Disabled Individuals:

  • Exemption from enterprise income tax for enterprises producing and assembling specialized products for disabled individuals.
  • Policy in effect until December 31, 2027.

Border Tea Production Enterprises:

  • Extension of the VAT exemption for sales of border tea produced and sold by specific enterprises until December 31, 2027.

Cultural Enterprises:

  • Continuation of VAT preferential policies for cultural enterprises until December 31, 2027.
  • Policies include VAT exemptions for various cultural and publishing activities.

These are just a few highlights of the extended tax and fee incentives aimed at supporting various sectors in China. For more details, you can refer to the specific announcements from the Ministry of Finance and the State Administration of Taxation.