Premier Li Keqiang presided over an executive meeting of the State Council on Wednesday, at which it was decided to enhance preferential tax support to community household service providers, including elderly assistance, children's nurseries and home help, in order to promote the development of community services.
The move is a significant measure to cope with the country's aging population and to support the family planning policy allowing all couples to have two children. It is also conducive to promoting employment, expanding consumption and boosting domestic demand.
According to the meeting, from June 1, 2019, to the end of 2025, income from community elder assistance, children's nurseries and household services will be exempt from value added tax, and enjoy a 10-percent discount on income tax.
Property and land used for such services are also exempted from six taxes and fees including contract tax, real estate tax and the immovable property registration fee. In addition, more preferential tax policies are being studied to further promote the development of the life service industry.
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