June 3 2022

China Adopts a Package of Measures to Stabilize Economic Performance

Source: Announcement of the State Council

The State Council released on May 31, 2022 the Circular of the State Council on Adopting a Package of Measures to Stabilize Economic Performance.

The policy of refunding value added tax (VAT) credits will be expanded. In addition to the unveiled policy of refunding outstanding VAT credits in full and refunding newly added credits in full on a monthly basis to businesses in six sectors including manufacturing, the country is also exploring to expand the policy to cover businesses in seven other sectors including wholesale and retail, agriculture, forestry, animal husbandry and fishery industries, accommodation and catering, residential services, repair and other services, education, health and social work, culture, sports and entertainment. It also urged to accelerate refunding of VAT credits to micro and small businesses and self-employed individuals, calling for basic completion of the outstanding VAT refunding prior to June 30, 2022 in a centralized manner on the basis of taxpayer's voluntary applications, according to the Circular.

Reference: http://www.gov.cn/zhengce/content/2022-05/31/content_5693159.htm