China's Tax Preferential Policies for 2025 World Games in Chengdu
The 12th Edition of the World Games will take place in Chengdu, China from August 7th to 17th, 2025. To support the preparations for the Chengdu World Games, the Ministry of Finance, the General Administration of Customs and the State Taxation Administration have issued a tax policy notice, which has introduced a series of tax preferential support policies for the Chengdu World Games. The notice has been implemented since January 1st, 2025.
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Exemption from VAT
The following revenues obtained by the Executive Committee of the 12th Edition of the World Games are exempt from VAT:
(1)
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Revenues from the sale of television broadcasting rights and revenues from sponsorship programs (goods and funds);
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(2)
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Domestic and international sponsorship income, income from the transfer of intangible assets (such as logos) and franchise rights, income from publicity and promotion, income from ticket sales, and income from the issuance of fee cards;
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(3)
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Income from the issuance of commemorative stamps in cooperation with China Philatelic Co., Ltd. and income from the issuance of commemorative coins in cooperation with the People's Bank of China;
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(4)
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Income from media such as radio, the Internet and television;
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(5)
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Income from the accommodation and food expenses of athletes charged at the prices approved by the International World Games Association and the provision of related services;
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(6)
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Income from the sale of assets after the game.
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Exemption from Stamp duty
Stamp duty shall be exempted for the following acts of the Executive Committee of the 12th Edition of the World Games (hereinafter referred to as the Executive Committee) :
(1)
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Business account books used by the Executive committee and various taxable documents such as contracts signed;
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(2)
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The property rights transfer document established by the property owner when donating the property to the Executive committee.
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It should be noted that for taxable documents such as business account books used by the Executive Committee and various contracts signed, only the stamp duty that the Executive Committee should pay is exempted.
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Other preferential policies
(1)
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Income obtained by the Executive committee from the post-competition transfer of assets is exempt from land value-added tax.
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(2)
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For the consumables imported by the Executive Committee for the Chengdu World Games, which are designated by the International World Games Association or international sports organizations and cannot be produced domestically or whose performance does not meet the needs and are directly used for the Chengdu World Games competitions, customs duties, value-added tax and consumption tax at the import stage shall be exempted.
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(3)
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Other special materials imported by the Executive Committee, including: Sports competition equipment, medical testing equipment, safety guarantee equipment, transportation and communication equipment, and technical equipment designated by the International World Games Association or international sports organizations that cannot be produced domestically or whose performance cannot meet the needs shall be handled in accordance with the regulations for temporary inbound goods during the Chengdu World Games. If they are re-exported after the Chengdu World Games, they will be written off.
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Kaizen’s Kind Reminder
The scope and quantity list of imported competition consumables eligible for tax exemption shall be summarized by the Executive committee and submitted to the Ministry of Finance for review and determination in conjunction with the General Administration of Customs and the State Taxation Administration.
For other special materials imported by the Executive Committee, they will be handled in accordance with the regulations for temporary inbound goods during the Chengdu World Games. If they remain in the country or are sold after the Chengdu World Games, formal import procedures will be handled in accordance with relevant regulations, and customs duties, value-added tax at the import stage and consumption tax will be levied in accordance with the regulations.
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