October 24, 2016: Three departments including the State Administration of Taxation have issued the Circular on Enterprise Income Tax Exemption for Enterprises Producing and Assembling Specialized Appliances for Disabled People (the "Circular").

The Circular specifies that from January 1, 2016 to December 31, 2020, resident enterprises that meet six conditions, including "producing and assembling specialized appliances for disabled people which are included in the scope of the Category of Specialized Appliances for Disabled People of China issued by the Ministry of Civil Affairs" and "selling specialized appliances for disabled people produced or assembled by themselves as their main business, with the annual income derived from the sale of specialized appliances for disabled people (excluding income derived from the export) accounting for no less than 60% of their total revenue", are exempted from the enterprise income tax. According to the Circular, enterprises entitled to the above preferential tax policy shall file a record with tax authorities according to the Announcement of the State Administration of Taxation on Promulgating the Measures for Handling Corporate Income Tax Preferences and properly maintain related documents for future reference. The Category of Specialized Appliances for Disabled People of China is also issued under the Circular.