The following tax policies are hereby announced for the purpose of further supporting the prevention and control of the COVID-19 outbreak and helping enterprises to overcome difficulties and develop:

I. The implementation period for the preferential tax policies specified in the Announcement of the Ministry of Finance and the State Taxation Administration on the Value-Added Tax Policies for Supporting the Resumption of Work and Business of Individual Industrial and Commercial Households (Announcement No. 13 [2020], Ministry of Finance and State Taxation Administration) shall be extended until December 31, 2021. In particular, from April 1, 2021 to December 31, 2021, as for a small-scale value-added tax (“VAT”) taxpayer in Hubei province, its taxable sales income to which the VAT rate of 3% applies shall be subject to VAT at the reduced rate of 1%; and the VAT on its items subject to prepayment of VAT at the rate of 3% shall be prepaid at the reduced rate of 1%.

II. If the tax preferential policies stipulated in the Announcement of the Ministry of Finance and the State Taxation Administration on Relevant Individual Income Tax Policies Supporting the Prevention and Control of the COVID-19 Outbreak (Announcement No. 10 [2020] of the Ministry of Finance and the State Taxation Administration) and the Announcement of the Ministry of Finance and the State Taxation Administration on the Tax and Fee Support Policies for the Film Industry and Other Industries (Announcement No. 25 [2020] of the Ministry of Finance and the State Taxation Administration) have expired, their execution period shall be extended to December 31, 2021.

III. If the tax preferential policies stipulated in the Announcement of the Ministry of Finance and the State Taxation Administration on Relevant Tax Policies Supporting the Prevention and Control of the COVID-19 Outbreak (Announcement No. 8 [2020] of the Ministry of Finance and the State Taxation Administration) and the Announcement of the Ministry of Finance and the State Taxation Administration on Relevant Donation Tax Policies Supporting the Prevention and Control of the COVID-19 Outbreak (Announcement No. 9 [2020] of the Ministry of Finance and the State Taxation Administration) have expired, their execution period shall be extended to March 31, 2021.

IV. The taxes which were levied from January 1, 2021 to the date of issuance of this announcement and should be exempted or reduced according to the provisions of this announcement may be used for credit of the taxes and fees to be paid by the taxpayer or payer in the future or be refunded.

The Announcement is hereby made.

Ministry of Finance and State Taxation Administration

March 17, 2021