On September 5, four departments, including the Ministry of Finance (MOF), jointly released the Announcement on the Issues Concerning the Income Tax Policies for Third-party Enterprises Engaged in Pollution Prevention and Control (the “Announcement”), with an implementation term from January 1, 2024 to December 31, 2027.

According to the Announcement, enterprise income tax shall be levied on eligible third-party enterprises engaged in pollution prevention and control at a reduced rate of 15%. To enjoy such policy, a third-party prevention and control enterprise shall simultaneously meet seven conditions, including "being a resident enterprise lawfully registered within the territory of China (excluding Hong Kong, Macao and Taiwan)", and "having operation practices of treatment facilities of environmental pollution for more than one year consecutively, and being able to guarantee the normal operation of facilities".

(Source: Ministry of Finance)