China issues tax cut guideline amid fight against epidemic

China's tax watchdog has unveiled a guideline to reduce financial pressure in key sectors amid the battle against the novel coronavirus outbreak.

The guideline, involving 12 detailed items, came after a string of tax policies rolled out last week to support epidemic prevention and control, supplies, donation and work resumption.

"The current priority for taxation departments is to ensure the implementation of preferential tax policies for epidemic prevention and control," said a senior official with the State Taxation Administration.

Subsidies for people participating in epidemic prevention and control will be exempted from personal income tax, while value-added tax will be waived for taxpayers in sectors like transportation, catering and daily necessities delivery.

The guideline also specified preferential tax policies regarding domestic and overseas donations.

To aid work resumption, the losses of virus-stricken firms logged in 2020 can be carried over to an extended maximum period of eight years, the guideline said.