Zhuhai tax policies assist companies amid epidemic

Ten measures released Jan 19 by the Zhuhai Taxation Bureau will offer solid support for local companies to overcome difficulties caused by the current COVID-19 pandemic. They include extending the tax declaration period, improving handling efficiency, and simplifying procedures. 

Catering and tourism enterprises greatly impacted by the pandemic can enjoy reasonable adjustments on their rated tax credits, while those temporarily closed can be registered as shut down and subject to exemption of related taxes. Companies in difficulty will receive a reduction on property and urban land use taxes.

Tax policy consultation [File photo / Guanhai App]

More support will be given to Zhuhai micro, small, and medium-sized enterprises. Small-scale taxpayers are exempted from value-added tax as long as their monthly sales volume does not exceed 150,000 yuan ($23,641) or quarterly sales volume is lower than 450,000 yuan ($70,923). An additional 50 percent discount on enterprise/individual income tax is available for small low-profit companies and individual business units with annual taxable income less than 1 million yuan ($157,603).

Manufacturing SMEs can defer taxation payments, including enterprise and individual income taxes as well as domestic value added and consumption taxes, for December or the fourth quarter of 2021.

Unemployment insurance rates and industrial injury insurance premiums will be lowered in phases. The social insurance premium declaration and payment period for January 2022 has been extended to the end of February.

The January tax filing period has also been extended to Jan 27. Taxpayers failing to pay before the deadline due to the pandemic can apply for further adjournment, while those failing to make a declaration or material submission in time will not be punished.