The Ministry of Finance ("MOF") has recently issued the Circular on Matters Concerning Donations Made by State-owned Financial Enterprises for Epidemic Prevention and Control (the "Circular").
The Circular provides clarifications on six matters, including "encouraging financial enterprises to make donations of different forms according to the needs of epidemic prevention and control". Among others, the Circular states that while making donations through non-profit social groups or state organs such as people's governments above the county level as well as the government agencies, financial enterprises may attach to these donations some specific requirements, including subjects eligible for fund use, conditions for fund use, and forms of fund use. Meanwhile, the Circular states that to make donations for epidemic prevention and control, financial enterprises shall undergo the corporate governance procedures as legally required. In case of emergency donations due to the needs of epidemic prevention and control, financial enterprises may, under the principle of "giving priority to special circumstances and emergencies", undergo relevant procedures by phone, video or other means. In addition, the Circular clarifies that financial enterprises may enjoy the corresponding preferential tax policies, if the donations they make for epidemic prevention and control conform to the relevant provisions stipulated by the Announcement of the Ministry of Finance and the State Taxation Administration [2020] No. 9.