No. 10 Announcement of State Taxation Administration in 2020

It is hereby notified that, in order to further support small-scale enterprises with low-profit and self-employed persons to resume work and production, to alleviate the financial pressure of their production and operation, and to stimulate the vitality of market entities, matters relating to deferred payment of income tax for 2020 for small-scale enterprises with low-profit and self-employed persons are announced as follows:

I. Deferred payment policy of income tax for small-scale enterprises with low-profit

From May 1, 2020 to December 31, 2020, small-scale enterprises with low-profit can suspend the payment of enterprise income tax for the current period and defer it to the first declaration period of 2021 after making prepayment declaration as required in the remaining declaration period of 2020. At the time of prepayment declaration, small-scale enterprises with low-profit can enjoy the deferred payment policy of income tax for small-scale enterprises with low-profit by filling in the relevant lines of the tax prepayment declaration form.

Small-scale enterprises with low-profit described in this announcement refer to enterprises that meet the conditions stipulated in the Announcement of State Taxation Administration on Issues Relating to the Implementation of Inclusive Income Tax Reduction and Exemption Policy for Small-scale Enterprises with Low-profit (No. 2 in 2019).

II. Deferred payment policy of income tax for self-employed persons

From May 1, 2020 to December 31, 2020, self-employed persons can suspend the payment of personal income tax for the current period and defer it to the first declaration period of 2021 after declaring their personal income tax and business income tax as required in the remaining declaration period of 2020. If a self-employed person implements simplified declaration, the personal income tax will be withheld from May 1, 2020 to December 31, 2020 and will be delayed to the first declaration period of 2021.

This announcement shall come into force on May 1, 2020. If a taxpayer has paid the deferred tax in accordance with the provisions of this announcement from May 1 to the issuance of this announcement, the taxpayer can apply for the refund of the amount and pay it together in the first declaration period of 2021.

Yours sincerely,

State Taxation Administration

May 19, 2020