We Will Continue To Implement Preferential Policies For Taxes And Fees In Response To The Epidemic Situation

The Ministry of Finance and the State Administration of Taxation recently announced that they would continue to implement some preferential tax policies in response to the epidemic, including supporting individual businesses to return to work and supporting the development of the film industry, so as to further support the prevention and control of the epidemic situation and help enterprises to alleviate the development.

It is clear in the announcement that the preferential tax policies stipulated in the announcement of the Ministry of Finance and the State Administration of Taxation on supporting the resumption of work and business of individual businesses shall be extended to December 31, 2021. Among them, from April 1, 2021 to December 31, 2021, small-scale VAT taxpayers in Hubei Province apply the taxable sales revenue with 3% levy rate, and levy VAT at 1% reduction rate; for VAT items with 3% prepayment rate, prepay vat at 1% prepayment rate. Li Xuhong, director of the Institute of Finance and taxation policy and application of Beijing National Accounting Institute, said: "the original preferential policy for small-scale VAT payment will continue, for example, 3% and 1% levy rate. However, we should pay special attention to the small-scale taxpayers in Hubei Province. From January to April 1, 2021, this time interval is still in accordance with the original policy, the original policy It is applicable to 3% of the levy rate, exempt from VAT. "

Li Xuhong explained that this means that according to the announcement, small-scale VAT taxpayers in Hubei Province will continue to be exempt from VAT in the first quarter of this year, but in the latter three quarters, the VAT rate of 3% will be reduced to 1% as in other regions.

In addition, the announcement also makes it clear that if the preferential tax policies stipulated in the announcement of the Ministry of Finance and the State Administration of Taxation on tax support policies for film and other industries have expired, the implementation period shall be extended to December 31, 2021. If the preferential tax policies stipulated in the announcement of the Ministry of Finance and the State Administration of Taxation on supporting the prevention and control of pneumonia caused by new coronavirus infection have expired, the implementation period shall be extended to March 31, 2021. Li Xuhong said: "the main direction of this year's macroeconomic policy is to ensure the stability and continuity of the policy, which is of great help. After the impact of the epidemic last year, enterprises can continue to develop sustainably after returning to work and production. Then, the preferential tax revenue will help to stimulate its internal motivation and have better development space in the new year."