P. 7
na has released a set of measures to support owned property through to the end of 2022.
the eldercare and childcare industries as the Eligible entities are micro, small, and medium-
government seeks to ease economic hardships for sized enterprises (MSMEs), as well as individual
socially important businesses. industrial businesses.

The National Development and Reform Lessors that reduce or exempt rent to eldercare and
Commission (NDRC) and 12 other authorities childcare service providers can enjoy a reduction
jointly released the measures on August 29, 2022, or exemption of property tax and/or urban
called Several Policy Measures to Support the and township land use tax. The measures also
Elderly Care and Childcare Service Industries to encourage state-owned banks to give preferential
Overcome Difficulties. treatment to such lessors when applying for loans.

The measures consist of a number of policies They further encourage local and regional
that lower costs for eldercare and childcare governments to explore other rent exemptions for
service providers, including exemptions on rent, eldercare and childcare service providers, including
reductions on taxes and fees, and the provision of by offering such entities vacant public rental
financial support. housing at a low price or free of charge.

They come as China faces the dual demographic • Tax and fee reductions
challenges of an aging population and a declining
birthrate, as well as short-term disruptions to the The measures offer eligible eldercare and childcare
eldercare and childcare industries due to COVID-19. service providers a reduction of up to 50 percent
on “six taxes and two fees”. The six taxes are
Supportive measures for eldercare resource tax, urban maintenance and construction
and childcare tax, property tax, urban and township land use
tax, stamp tax (except for securities transactions),
The measures explicitly state that they are and farmland occupation tax. The two fees are the
intended to assist the eldercare and childcare education surcharges and local education surcharges.
industries to overcome difficulties caused by the
COVID-19 pandemic. They come in four main In another tax-cutting measure, eligible eldercare
categories: rent, taxes and fees, social insurance, and childcare service providers can enjoy the large-
and financial support. scale value-added tax (VAT) rebates policy, under
which qualified businesses can claim full refunds
Besides these areas of support, the measures also of incremental VAT credits on a monthly basis and
state that the government will increase investments claim one-off refunds of their remaining VAT credits
in the construction of eldercare and childcare in turn following a decided calendar.
facilities, including by providing local government
bonds for such projects. Further, the measures reiterate that both eldercare
and childcare service providers are eligible to
The supportive measures are summarized as follows. benefit from the preferential tax policies specified in
the Announcement of the Preferential Tax Policies
• Rent reductions and exemptions for Elderly Care, Childcare, and Housekeeping
Services, released in 2019. Institutions providing
Eligible eldercare and childcare service providers eldercare, childcare, and domestic services to the
can receive an exemption on rentals of state- community shall enjoy preferential tax policies in
accordance with the following provisions:

   2   3   4   5   6   7   8   9   10   11   12