Type 1 Tax exemption policy

1. From April 1, 2022 to December 31, 2022, VAT is exempted from tax on taxable sales income of VAT small-scale taxpayers where a 3% levy rate applies;

2. From January 1, 2022 to December 31, 2022, VAT is exempted on income derived from taxpayers' provision of public * **transportation services are exempted from VAT on income derived from such services.

3. Continuing the implementation of some of the national commodity reserve tax incentives. from January 1, 2022 to December 31, 2023, the Commodity Reserve Management Corporation and its directly under the Treasury capital account books are exempted from stamp duty. The property and land used by the Commodity Reserve Management Corporation and its directly subordinate depots for commodity reserve business are exempted from property tax and urban land use tax

4. Extending the period of implementation of preferential policies on property tax and stamp duty for student apartments in colleges and universities. The period of exemption from property tax for qualified student apartments in universities and stamp duty for lease contracts of student apartments in universities signed with students in universities has been extended to December 31, 2023, which is the deadline for the implementation of the preferential policies on property tax and stamp duty.

5. Extending the implementation period of preferential tax policies for urban bus terminals, road passenger terminals, and urban rail transit system operation sites. The exemption of urban land use tax for eligible land for operation of urban bus terminals, road passenger terminals, and urban rail transit systems will be extended until December 31, 2023, and the implementation period will be extended until December 31, 2023.

6. Extending the implementation period of preferential policies on property tax and urban land use tax for agricultural products wholesale markets and farmers' markets. Qualified wholesale markets for agricultural products, farmers' markets (including owned and leased, the same below) dedicated to the operation of agricultural property, land, property tax and urban land use tax is temporarily exempted. For properties and land used by wholesale markets for agricultural products and farmers' markets that also operate other products, property tax and urban land use tax shall be levied and exempted according to the ratio of the area of the trading site for other products and agricultural products. The implementation period is extended to December 31, 2023.

7. Extending the implementation period of the individual income tax policy related to supporting the prevention and control of the epidemic of new coronavirus-infected pneumonia. The temporary work subsidies and bonuses obtained by medical personnel and epidemic prevention workers participating in epidemic prevention and control according to the standards set by the government are exempted from individual income tax; medicines, medical supplies and protective supplies in kind (excluding cash) issued by units to individuals for the prevention and control of new coronavirus-infected pneumonia are exempted from individual income tax without being counted as income from wages and salaries. The implementation period is extended to December 31, 2023.

The second type of tax reduction policy

1. From January 1, 2022 to December 31, 2024, for small micro-profit enterprises, the portion of their annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan is reduced by 25% of their taxable income, and they are subject to enterprise income tax at a rate of 20%.

2. To further encourage science and technology-based small and medium-sized enterprises (SMEs) to increase their investment in research and development (R&D), the pre-tax deduction for R&D expenses of SMEs will be increased from 75% to 100% starting from January 1, 2022

3. Special additional deduction for personal income tax on the care of infants and young children under the age of 3 will be established. Starting from January 1, 2022, taxpayers' expenditures related to the care of infants and children under the age of 3 will be deducted at a fixed rate of 1,000 yuan per month for each infant and child.

4. Increase the pre-tax deduction for equipment and appliances for small, medium and micro enterprises. Micro, small and medium-sized enterprises in the period from January 1, 2022 to December 31, 2022, newly purchased equipment, appliances, unit value of more than 5 million yuan, the minimum depreciable life of 3 years of equipment and appliances can be a one-time pre-tax deduction in the current year; the minimum depreciable life of 4 years, 5 years, 10 years, the value of the unit of 50% of the current year can be a one-time pre-tax deduction, and the remaining 50% in the remaining years of deduction

5.

5. Continuation of VAT credit policy for service industry. The policy of adding and deducting VAT for the production and living service industries has been extended to December 31, 2022 for a period of time.

6. Reduction and exemption of property tax and urban land use tax for those who have difficulties in paying property tax and urban land use tax in 2022. For owners of rent reduction in accordance with the provisions of the relevant documents, property tax and urban land use tax will be reduced or exempted according to the number of months of rent reduction.

7. Continuing the implementation of the policies related to investment in start-up science and technology enterprises by venture capital enterprises and angel investors. From January 1, 2022 to December 31, 2023, for the conditions to be met by the start-up science and technology enterprises, the number of employees will continue to be no more than 300 people, total assets and annual sales revenue of no more than 50 million yuan.

8. Extend the implementation period of preferential tax policies for science and technology business incubators. The implementation period of the tax preferential policies stipulated in the document "Notice of the Ministry of Finance, the State Administration of Taxation, the Ministry of Science and Technology and the Ministry of Education on the Tax Policies of Science and Technology Business Incubators, University Science Parks and Crowd Creation Space" (Cai Shui [2018] No. 120) has been extended to Dec. 31, 2023, which is the first time that the tax preferential policies have been implemented.

9. Extending the implementation period of preferential policies on income tax for third-party enterprises engaged in pollution prevention and control. The implementation period is extended to December 31, 2023 for the policy of reducing the enterprise income tax rate by 15% for qualified third-party enterprises engaged in pollution prevention and control (hereinafter referred to as third-party prevention and control enterprises).

Legal Basis

Article 3 of the Law of the People's Republic of China on the Administration of Taxation Collection

The introduction and suspension of taxation, as well as the reduction, exemption, refund and replacement of taxation, shall be implemented in accordance with the provisions of the law; where the State Council is authorized by the law to make provisions, the provisions shall be implemented in accordance with the provisions of the administrative regulations enacted by the State Council.

No organ, unit or individual shall, in violation of the provisions of laws and administrative regulations, make unauthorized decisions on the introduction and suspension of taxes, as well as tax reductions, exemptions, refunds and compensatory taxes, and any other decisions that conflict with the tax laws and administrative regulations.