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

Summary :

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• 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.

The novel coronavirus 2019 (COVID-19) has continued to impact China's economy in 2022.  Since 2020, dozens of preferential policies have been published by the Ministry of Finance (MOF), the State Administration of Taxation (SAT) and other government departments to support the country's economic recovery and growth.  In 2022, additional integrated policies have been published to comprehensively stimulate the economy with a focus on certain sectors of business, which will be highlighted in this article.

1 .   Preferential Tax Policies for Small Businesses