Join us on Thursday, 30 April with Ray Zhang, Tax Service Manager of Grant Thornton for a webinar session focusing on the latest tax relief policies in China in response to Covid-19.

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AGENDA:

2:00 PM - Welcome | Jack Brady, CEO at AustCham Shanghai

2:05 PM - Ray Zhang, Tax Manager at Grant Thornton

2:35 PM - Q&A

3:00 PM - Webinar finishes

TOPICS:

Reduced VAT for Supporting SME in Resumption of Business

During the period from March 1, 2020 to May 31, 2020, SME may file VAT at the reduced levy rate of 1% for their taxable sales revenue normally subject to 3%; For SMEs in provinces like Hubei Province, autonomous regions and centrally-administered municipalities, VAT could be exempted.

Reduction of Enterprise Social Security Premium Contribution and Basic Medical Insurance in Phases

From February 2020, SME can exempt the payment of three social insurance units of the enterprise part, the exemption period shall not exceed five months; and for large enterprise(excluding State agencies and institutions), three social insurance units can be levied in half, the reduction period shall not exceed three months. In addition, SME can implement a 50% reduction of employers' medical insurance contributions for employees, and the reduction period shall not exceed five months.

Tax Policies to Support Four Most-impacted Industries by Coronavirus

From January 2020, income derived by taxpayers from provision of public transportation services and living services, as well as express delivery services involving residents' necessities, shall be exempted from VAT. Besides, taxpayers are also exempt from VAT on their income from transporting key materials for the epidemic prevention and control.

For losses incurred by enterprises in difficult industries seriously affected by the epidemic in 2020, the loss carried-forward period may be extended from five years to eight years.

Non-taxable for Coronavirus Related Donations

Where enterprises donate goods self-produced, processed on a commission basis or purchased to cope with the epidemic situation caused by novel coronavirus infected pneumonia, the VAT, consumption tax, urban maintenance and construction tax, education surcharge and local education surcharge shall be exempted.

SPEAKER

Ray Zhang
Tax Manager, Grant Thornton

Ray is the tax service manager at Grant Thornton's Shanghai office. He has been specializing in providing tax services to both multinational and domestic corporations for over 8 years. Prior to joining Grant Thornton, Ray worked with PwC.

Ray worked closely with lots of MNC clients. His experience includes providing tax compliance, tax planning and tax and business advisory services in aspect of PRC tax compliance, advisory and tax controversy, investment structure planning and business and operation model analysis.

In addition, Ray have supported many corporate and PE clients in relation to tax due diligence and health checks experiences covering industries including IT, heavy industry, automobile and other general manufacturing, etc.

Ray obtained his Master of Finance and Accounting Degree from University of Queensland, Australia.

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