China’s Ministry of Finance and the State Administration of Taxation have co-released a series of new policies to exempt valued-added tax for elderly care institutions, China Fund reported.
Medical institutions that provide services listed in the National Standards for Medical Service with a lower price, can also enjoy the VAT exemption policy.
Also, interest-free lending between enterprises can also be exempted from VAT. This will take effect from the beginning of February till the end of 2020.
The authorities have also urged the implementation of a pilot policy featuring a personal tax-deferred benefit from the purchase of commercial old-age care insurance.
That is, taxpayers can delay the tax payment when buying old-age insurance. The premium can be deducted before tax (no more than 12,000 yuan per year). The personal income tax will be levied when the individual receives the pension.