Chinese Government Provides Preferential Interest Rates and Tax Benefits to Companies Affected by Novel Coronavirus

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] The Chinese government is introducing various support measures such as preferential interest rates and tax benefits for companies struggling due to the novel coronavirus infection (Wuhan pneumonia).

According to local media on the 8th, the Chinese Ministry of Finance and the State Taxation Administration have decided to allow transportation, food service, lodging, and tourism sector companies to carry forward losses for up to 8 years and exempt value-added tax on their income.

They also plan to provide tax benefits for donations and subsidies for participants in quarantine efforts, and exempt airlines from paying the Civil Aviation Development Fund.

Earlier, on the previous day, the Ministry of Finance, the National Development and Reform Commission, and the People's Bank of China announced financial support measures for companies focused on novel coronavirus quarantine efforts. During the quarantine period, electricity rates for businesses will be reduced, and loan interest will be subsidized to lower interest rates to 1.6% or below.

This content was produced with the assistance of AI translation services.