COVID-19 Legal Series (9): 2022 Preferential Tax Policies Responding to COVID-19

July 15, 2022 | BY

Susan Mok

Guo Yongmao and Zhang Tianyang of Haiwen & Partners highlight 2022 tax policies that support businesses, which have been impacted by the COVID-19 pandemic situation

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Summary :

  • MOF and SAT have issued numerous preferential tax policies in recent years to support small-sized businesses which have been extended right up to Dec. 31, 2022/2023 and in some instances up to Dec. 31, 2024.
  • March 2022, MOF and SAT introduced a series of more favorable policies to allow qualified micro and small-sized enterprises and other qualified enterprises to claim a one-off refund of historically accumulated overpaid VAT.
  • If preferential tax policies for small businesses provide more favorable treatment in comparison to the policies specifically for the industries substantially affected by COVID-19, small-sized taxpayers may choose to apply the more advantageous one.