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The domestic service industry will continue to be exempt from value-added tax, and the 2026 tax reform will promote the sustainable and high-quality development of China's domestic service sector
Prnewswire· 2026-02-06 13:30
Core Insights - E-Home Household Services Holdings Limited plans to leverage new tax incentives to enhance financial management, improve service quality, and integrate AI technology into its operations by 2026 [1] Tax Policy Implications - Domestic service enterprises may benefit from reduced or exempt VAT on income from domestic services, which will lower corporate tax burdens [2] - Social insurance contributions for employees are deductible, further reducing taxable income for enterprises [2] - Training expenses for home service personnel can be deducted at an increased rate, encouraging skill enhancement [2] - Special additional deductions for taxpayers supporting elderly dependants or raising children may stimulate demand for home services [2] Company Strategy and Market Impact - The 2026 tax reform will reduce corporate operating costs, allowing more capital for improving service conditions and worker compensation [3] - The reform is expected to stimulate market demand for domestic services, particularly in elder care and childcare, expanding the industry's market potential [3] - Policy implementation will drive standardization and professionalization in the home service industry, promoting sustainable growth and societal recognition [3] Company Overview - E-Home, established in 2014, is a Nasdaq-listed household service company based in Fuzhou, China [4] - The company operates in home appliances, smart home installation, housekeeping, and public cleaning services [5] - E-Home has two main business channels: ToC (consumer services) and ToB (public cleaning), along with two subsidiaries focused on pharmaceuticals and corporate training [6]