Recently, International Tax Review, the world’s most influential tax journal, released an article praising the efforts made by China’s tax authorities in fighting against the COVID-19 pandemic and boosting socio-economic development.
The article lauded the Chinese tax solutions amid the difficult pandemic situation and affirmed their contribution toward stabilizing China’s economy.
Since the outbreak, the Chinese government has rolled out a raft of 20 targeted incentives, including cutting value-added tax, consumption tax, and corporate and individual income taxes, as well as waiving employers' payments to various social insurance schemes.
The measures can be put into four categories, namely: supporting prevention, control and treatment of the disease; ensuring material supplies; encouraging public donations; and clearing the way for the resumption of work and production.
In order to better implement the policies, Chinese tax authorities have not only circulated the latest incentives to taxpayers in a timely manner, but also strengthened their supervision and assessment. It is believed that the incentives will play a significant role in aiding the resumption of work and production for small- and medium-sized enterprises.
The article praised the “non-contact service” which has been implemented at various levels of the Chinese tax authorities since the outbreak. The measures have effectively reduced gatherings of people and guaranteed safe transactions through deferred processing, online services, the “12366” consulting services platform, and an appointment system designed to avoid peak times.
The article also mentioned a slew of measures to facilitate export tax rebates, created to relieve the burden on businesses, ease their financing pressure and stabilize foreign trade.
Pascal Saint-Amans, director of the Center for Tax Policy and Management of the Organization for Economic Cooperation and Development (OECD), expressed appreciation for what the Chinese government and especially the tax authorities had done to curb the virus’ spread and support the resumption of work and production.