(Yicai Global) Feb. 7 -- China's transport, catering, lodging and tourism sectors, which will bear the brunt of this year's losses from the new coronavirus pneumonia epidemic, may carry them over for up to eight years from the original five years to ease the operating difficulties these sectors face, according to a circular the country's finance ministry and tax administration jointly released today to cushion the impact of the pestilence on these businesses.
The guidelines also offer a raft of tax preferences for firms providing key guarantee materials and livelihood services during the contagion.
Necessary equipment newly purchased by key support material producers to lift their capacity can be booked once as current costs and deducted from the enterprise income tax, per the document.
Value-added tax is to be exempted on income from carriage of key materials for epidemic prevention and control, provision of public transit and daily living services, as well as express deliveries of necessary living materials.
Funds and materials enterprises and individuals donate via public welfare associations, government agencies and hospitals active in epidemic prevention and control may also be deducted in full from their taxable income
Editor: Ben Armour