China has released a new corporate income tax (CIT) incentive
for enterprises engaged in pollution prevention and control, in a
bid to support firms that align with the government's
environmental goals.
According to the incentive, qualified pollution prevention and
control enterprises – such as those engaged in waste
management or pollution monitoring – will benefit from a
reduced CIT rate of 15 percent. It will be implemented
retroactively from January 1, 2019 until December 31, 2021.
The policy was jointly announced by the Ministry of Finance,
State Administration of Taxation, National Development and Reform
Commission, and Ministry of Ecology and Environment on April 13 in
The Announcement on the Third Party Enterprise Income Tax Policy
Concerning Pollution Prevention and Control.
