October 31 2019

Two Authorities Clarify Value-added Tax Deduction Policies for the Life Service Industry

Announcement by Ministry of Finance (MOF) and the State Administration of Taxation (SAT)

The Ministry of Finance and the State Administration of Taxation recently issued the Announcement about Value-added Tax Deduction Policies for the Life Service Industry. According to the announcement, from October 1, 2019 to December 31, 2021, taxpayers of life services can get an additional 15% deduction on input value-added tax to offset their taxable income.

Taxpayers of life services are taxpayers whose sales revenue from life services accounts for more than 50% of their total sales revenue. The scope of life services is defined according to the Notes to Sales Services, Intangible Assets and Immovable Properties.