31 July 2019
China Introduces Tax Incentives for Community-Based Domestic Services
New measures aimed at boosting the development of community-based family services have been jointly-unveiled by the Ministry of Finance and four other government bodies. With the focus very much on elderly care, child care and other domestic services, the incentives on offer – as detailed in Circular No. 76  – are largely related to preferential tax and fee arrangements.
In more specific terms, income legally-derived from the provision of elderly care, child care and domestic services will be VAT-exempt, while income derived from such services will only be taxed at 90% of the standard rate. In additional moves, the transfer of real estate and / or land for use in the provision of such services will be exempt from Deed Tax, while any real estate / land used will be deemed to be exempt from Immovable Property Registration Fees, Arable Land Reclamation Fees, Land Reclamation Fees and Idle Land Fees.
Source: Ministry of Finance