Loss compensation: The carry-over period of losses of difficult enterprises and film enterprises is extended to 8 years

(1) Announcement on Supporting Tax Policies for Prevention and Control of Pneumonia Infected in novel coronavirus. Article 4 of Announcement No.8 of the Ministry of Finance and the State Administration of Taxation in 22 stipulates that the longest carry-over period of losses incurred by enterprises in difficult industries that are greatly affected by the epidemic in 22 is extended from 5 years to 8 years. Enterprises in difficult industries, including transportation, catering, accommodation and tourism (referring to travel agencies and related services, and scenic spot management), shall be judged according to the current National Economic Industry Classification. The main business income of enterprises in difficult industries in 22 must account for more than 5% of the total income (excluding non-taxable income and investment income). Taxpayers should judge for themselves whether they belong to enterprises in difficult industries, and the proportion of main business income meets the requirements.

(ii) In order to support the development of the film industry, Article 2 of the Announcement on Tax and Fee Support Policies for the Film Industry (Announcement No.25 of the Ministry of Finance and the State Administration of Taxation in 22) clearly states that the longest carry-over period for losses incurred by enterprises in the film industry in 22 will be extended from 5 years to 8 years. Film screening service refers to the audio-visual services provided to the audience by the units holding the Film Screening Business License using professional cinema screening equipment. Enterprises in the film industry are limited to the production, distribution and projection of films, and do not include enterprises that disseminate films through information networks such as the Internet, telecommunication networks and radio and television networks.