What tax benefits can catering enterprises enjoy because of the losses caused by the epidemic?

Affected by the epidemic, what tax benefits can catering enterprises enjoy for losses? Let's take a look at the latest tax policy issued by the Ministry of Finance to support the prevention and control of the new pneumonia epidemic.

What tax benefits can catering enterprises enjoy because of the losses caused by the epidemic?

Through the interpretation of the Announcement on Supporting Tax Policies for Prevention and Control of Pneumonia in novel coronavirus, we can get the following points:

Enterprises belonging to difficult industries are greatly affected by the epidemic situation, and there are difficulties in production and operation, resulting in losses. At this time, you can enjoy the preferential tax policies related to the longest carry-over period. The specific provisions are: the longest carry-over period of 5 years can be extended to 8 years.

Who are the enterprises in the difficult industries in this policy?

Refers to four types of enterprises: transportation, catering, accommodation and tourism. Tourism enterprises specifically include travel agencies and related services, and scenic spot management.

From the above, it can be concluded that catering enterprises belong to one of the enterprises in difficult industries, if they suffer heavy losses because of the epidemic. At this time, you will enjoy the preferential tax policy of extending the maximum carry-over period.

Note: According to the regulations, the main business income of difficult industries must account for more than 50% of the total income, and the total income here does not include tax-free income and investment income.

What other adjustments have been made to the tax policy to support epidemic prevention and control?

1. If the production enterprise of key materials for epidemic prevention and control newly purchases corresponding equipment due to the expansion of production capacity, the current costs and expenses are allowed to be deducted in one lump sum before enterprise income tax.

2, for the epidemic prevention and control of key materials production enterprises, can apply to the competent tax authorities for a full refund of VAT incremental tax deduction procedures every month.

3 taxpayers who meet the conditions of "transportation income of key materials for epidemic prevention and control" can enjoy the preferential policy of exemption from value-added tax.