Tax reduction policies set in Hubei for medics, donors

Tax reduction policies are in place for medical personnel, medical material suppliers and donors during the COVID-19 pandemic, a tax official in Central China's Hubei province said on Monday.

Enterprises affected greatly by the outbreak also will enjoy preferential policies to resume production, said Wu Mingxi, chief economist at the Hubei Taxation Administration.

Taxpayers are exempted from value-added tax for the money they have earned by transporting key materials for pandemic prevention and control, and providing residents with essential daily supplies and express delivery services during the outbreak, he said.

According to Wu, tax policies also are given to encourage social donations. Cash and articles donated by enterprises and individuals during the outbreak can be deducted in the calculation of taxable income.

Newly-purchased equipment for the purpose of expanding the production capacity of key medical material-producing enterprises can be counted one-time in the current expenses and included in pre-tax deductible items, according to Wu.

He added that the import of materials directly used for the prevention and control of the disease organized by health authorities should be exempted from customs duties.

Wu said various policies also are available for enterprises to recover. The maximum carryover period was extended from 5 years to 8 years for enterprises greatly affected by the pandemic and that suffered losses this year.

The monthly basic endowment, unemployment, and work-related injury insurance that enterprises should pay can be exempted for 5 months, according to Wu.