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Now! China - July 2020

Deferred Payment of Income Tax for Small, Low-profit Enterprises and Individual Business

In order to relieve pressure on operating cash flow of small, low-profit enterprises and individual businesses, the State Administration of Taxation released the Announcement [2020] No.10 on 19 May 2020 to allow taxpayers to defer their income tax payments for 2020.

SMALL AND LOW-PROFIT ENTERPRISES

From 1 May 2020 to 31 December 2020, small, low-profit enterprises that have completed their quarterly Corporate Income Tax (“CIT”) filings may defer tax payments until the first quarterly CIT filing in 2021. Enterprises shall determine whether they meet the criteria of small, low-profit enterprises and decide whether or not to benefit from the deferred payment policy. Qualified enterprises that choose to enjoy the deferred payment option only need to file the relevant sections in the quarterly CIT filings 2020.

SOLE PROPRIETORS

Sole proprietors who have completed their Individual Income Tax (“IIT”) filings on incomes from business operations for the period from 1 May 2020 to 31 December 2020 can defer their quarterly tax payments until the first quarterly IIT filing in 2021. In addition, sole proprietors who adopt this deferred payment option will have their IIT payment temporarily deferred for the period from 1 May 2020 to 31 December 2020 until the first IIT filing in 2021.

This announcement has taken effect from 1 May 2020. Taxpayers who have paid their taxes and fall within the provisions of this announcement are allowed to apply for a tax refund, and defer their tax payments until the first tax filing in 2021.


Website: www.SBASF.com 

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