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Multinational Companies in China Seek Tax Relief to Offset Coronavirus Woes

Joyce Huang

   Multinationals in China are seeing a "significant" revenue loss from
   the coronavirus outbreak, with most American and European companies
   expecting revenue to decrease this year if business cannot resume soon.
   They are urging China's government to provide tax relief while putting
   a priority on transparency and consistent policies in its fight against
   the disease.

   An American Chamber of Commerce in China survey released Thursday found
   that nearly half of 169 company executives expect this year's revenue
   to drop if their business operation does not return to usual by the end
   of April.

   Massive revenue drop

   Nearly one-fifth of them forecast a massive 50% drop or more in 2020
   revenue if the outbreak continues through the end of August, while 10%
   are already reporting a daily loss of about $70,000 (500,000 yuan), the
   organization said in a press statement.

   Another joint survey by the European Union Chamber of Commerce in China
   and the German Chamber of Commerce in China also found that nearly half
   of their 577 member companies expect a double-digit revenue drop for
   the first half of this year, while a quarter of them forecast a drop of
   more than 20%, according to their press statement."

   There is, in the short term, a clear and significant negative impact to
   member company operations, through travel disruptions, reduced staff
   productivity, increased costs, significant drops in revenue and more,"
   said AmCham China chairman Greg Gilligan in the statement, referring to
   major challenges currently facing American companies there.

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