Government of China launched new policies to support companies moving through the COVID-19. They have been the most powerful preferential policies, at least since I became an accounting staff in 1993. Grant areas covered company taxes preferences and social insurance partial exemptions. Details are explained below.

VAT tax rates reduced

VAT rate reduced from 3% to 1% to the Tax Payer of Small Size Enterprises and Privately-Owned Business. The granted period is from Mar.1stto May 30th, 2020. Accordingly, the tax submission period is from Apr. to Jun. 2020. VAT invoices shall comply with the rate of VAT determined.                      

http://www.chinatax.gov.cn/chinatax/n359/c5145334/content.html

Launched on Feb.20th, 2020

Social Insurance fees partially exempted

For Small and Medium Size Enterprises and Privately-Owned that meets conditions of the Exemption Policies, fees of partial insurance items are exempted from Feb.2020 to Jun.2020. For the Big-Size Enterprises and others also can exempt the same social insurance items fees but the period only for Feb.2020 to Apr.2020.

The items with fees exempted are enterprise pension insurance, unemployment insurance, and industrial injury insurance.

http://hrss.sz.gov.cn/szsi/sbjxxgk/zcfggfxwj/zcfg/sbzs/202003/t20200306_19041947.htm

Launched on Mar.6th, 2020.

For a CNY2,500 monthly payroll, CNY365 is saved and CNY1,420 is saved for a monthly payroll at CNY10,000.

Permission Business Scope to Foreign Investment extended

Specific Administrative Guidance for Foreign Investment launched on Jun.30th, 2019 and effected from Jul.30th,2019. The Guidance covers 13 industries formed by 40 items. It used to be 151 items in the former version. Much clearer on the contents display and more specific on permission directions. Basically, the scope is extended.