Dear Members and Friends,
The China-Italy Chamber of Commerce is glad to share an article that its Member Orcom C&A has published on "Hangzhou tax policies for 2022 Asian Games ".
Hangzhou tax policies for 2022 Asian Games
The city of Hangzhou will be hosting the 2022 Asian Games, becoming the third Chinese city to host this event.
On April 15th, 2020, the Ministry of Finance together with the State Taxation Administration and the General Administration of Customs have issued the Announcement on the Tax Policies in Hangzhou for 2022 Asian Games and Asian Paralympics Games (“Announcement”) and the Announcement on the Tax Policies for Three International Comprehensive Sports Events including the 18th Gymnasiade.
In particular, the Announcement provides for an exemption from Customs duties, import VAT and Consumption tax for certain designated consumables, which are imported for organizing sports meets and cannot be produced domestically or whose performance does not meet the needs, and are directly used in sports’ meets.
On the other hand, the special needs materials imported by the organizing committee (including designated sports competition equipment, medical testing equipment, safety guarantee equipment, transportation and communication) shall be handled in accordance with the provision for temporary import of goods during the games. Then, those which are re-exported after the games shall be written off; those which will stay in the PRC or are sold in the domestic market shall go through formal import procedures in accordance with relevant regulations and be subject to relevant Customs duties, import VAT and Consumption tax.
Furthermore, the income received by the organizing committee from the transfer of certain assets after the end of the games will not be subject to VAT and land appreciation tax.
Moreover, expenditures related to funds, materials, supplies and services offered for free or donated by enterprises, social organizations and groups will be deductible in full for EIT purpose. Relevant services that are offered for free by enterprises as per the sponsorship agreement to the organizing committee shall be exempted from VAT.
In addition, pursuant to the Announcement, the following will benefit from exemption from VAT:
Finally, the Announcement specifies that, there will be a Stamp duty exemption on the following:
The above-mentioned tax policies will be implemented from the date of promulgation.
Do not hesitate to contact our Orcom C&A Tax Advisory team at email@example.com for additional information and assistance on this matter.
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