due to the epidemic, what tax benefits can catering enterprises enjoy if they lose money? Let's take a look at the latest tax policies issued by the Ministry of Finance to support the prevention and control of the new pneumonia epidemic.

what tax benefits can catering enterprises enjoy if they suffer losses due to the epidemic?

By reading the Announcement on Tax Policies to Support the Prevention and Control of Pneumonia Infected in novel coronavirus, it can be concluded that

Enterprises in difficult industries have encountered difficulties in their production and operation and incurred losses due to the great impact of the epidemic. At this time, you can enjoy the preferential tax policies related to the longest carry-over period. The specific provisions are: the maximum carry-over period of 5 years can be extended to 8 years.

what are the enterprises in the difficult industries in this policy?

refers to four types of enterprises: transportation, catering, accommodation and tourism. Tourism enterprises specifically include travel agencies and related services, and management of scenic spots.

from the above, it can be concluded that catering enterprises belong to one of the enterprises in difficult industries, and if they are affected by the epidemic, they will suffer heavy losses. At this time, you will enjoy preferential tax policies to extend the maximum carry-over period.

note: according to the regulations, the income from the main business of difficult industries must account for more than 51% of the total income, and the total income here does not include tax-free income and investment income.

what other adjustments have been made to the tax policy to support epidemic prevention and control?

1. If the production enterprise of key materials for epidemic prevention and control newly purchases corresponding equipment due to the expansion of production capacity, the current costs and expenses are allowed to be deducted once before enterprise income tax.

2. For the production enterprises of key materials for epidemic prevention and control, they can apply to the competent tax authorities for full refund of the incremental VAT tax allowance every month.

3. If the taxpayer meets the condition of "income from transporting key materials for epidemic prevention and control", he can enjoy the preferential policy of exemption from value-added tax.