China Waiving Import Duties on Certain Emergency Cars, Medical Supplies Due to Coronavirus
KPMG issued a Feb. 11 alert detailing recent announcements made by China to simplify customs and trading procedures as the country battles the coronavirus outbreak (see 2002030034). China will exempt certain import duties on ambulances and cars used for emergency purposes -- as well as medical supplies such as reagents, disinfection equipment and protective supplies -- through March 31, KPMG said. Importers are also eligible for tax refunds on qualifying supplies if they already paid duties. KPMG said to expect “more tax relief measures” if the virus continues.
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Aside from the waived import duties, the measures could be beneficial for biotechnology companies engaged in scientific research, KPMG said. Those companies will benefit from research and development tax incentives, such as value-added tax refunds for equipment bought by scientific institutions. KPMG also said China is stressing that all tax matters be dealt with remotely to “limit the risk of spread of the epidemic.” To aid with this requirement, companies should “embed technology into the entire tax management process, facilitating remote operations in real time.”