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

Rhea-AI Summary

E-Home Household Services (NASDAQ:EJH) said it will use 2026 tax incentives to improve financial management, expand training, raise service quality, and introduce AI-driven human-machine services to boost staff deployment and performance through 2026.

Key policy directions include VAT reduction/exemption for domestic services, deductibility of employer social insurance and increased deductions for training expenses, preferential corporate income tax rates for eligible home service firms, and personal income tax additional deductions to stimulate household demand.

Positive

• Possible VAT reduction or exemption on domestic service income
• Employer social insurance contributions deductible when calculating taxable income
• Increased training expense deductions for home service personnel

Negative

• None.

Market Reality Check

Price: $0.6280 Vol: Volume 81,103 vs 163,998 ...

low vol

$0.6280 Last Close

Volume Volume 81,103 vs 163,998 20-day average (relative volume 0.49). low

Technical Trading 98.94% below 52-week high and 2.39% above 52-week low; below 200-day MA at 3.31.

Peers on Argus

EJH fell 4.67% while peers showed mixed moves: several names (YYGH, MRM, TRNR, I...

EJH fell 4.67% while peers showed mixed moves: several names (YYGH, MRM, TRNR, IVP) declined, but CLIK rose 7.02%. With no peers in the momentum scanner and no same-day peer headlines, the move appears stock-specific rather than a coordinated sector reaction.

Historical Context

2 past events · Latest: Dec 01 (Positive)

Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Dec 01	AI acquisition	Positive	-6.9%	Acquisition of AI access control and smart community services platform.
Aug 29	AI product launch	Positive	-3.1%	Launch of AI-powered home cleaning robots to automate services.

Pattern Detected

Recent positive strategic and AI-related announcements were followed by negative 24h price reactions, suggesting a pattern of selling into good news.

Recent Company History

Over the past months, EJH emphasized technology-driven expansion. On Dec 1, 2025, it announced an acquisition of an AI access control and smart community services company to extend its IoT-enabled front-end capabilities, but shares fell 6.87% over 24 hours. Earlier, on Aug 29, 2025, the company introduced AI cleaning robots aiming to reduce costs and improve experience; the stock still declined 3.14%. Today’s tax-incentive news fits this pattern of strategic positives facing cautious market reactions.

Market Pulse Summary

This announcement highlights how China’s 2026 tax incentives for domestic services could lower EJH’s...

Analysis

This announcement highlights how China’s 2026 tax incentives for domestic services could lower EJH’s VAT burden, support higher training spend, and indirectly stimulate demand through personal income tax deductions. The company plans to pair these policies with AI adoption and a human–machine service model. Against a backdrop of prior AI initiatives in August and December 2025 and significant capital-raising in 2025, investors may watch how these measures affect margins, service quality, and scale by 2026.

Key Terms

value-added tax, vat, social insurance contributions, ai technology

4 terms

value-added tax financial

"The domestic service industry will continue to be exempt from value-added tax,"

A value-added tax (VAT) is a consumption tax charged on the extra value a business creates when producing or selling goods and services; businesses collect the tax at each step and remit it to the government, while the final cost is borne by the consumer. Investors should care because VAT affects companies’ pricing, profit margins, cash flow timing and compliance costs — like toll booths on a supply chain that can change demand and profitability.

vat financial

"may benefit from a reduction or exemption of VAT on income derived"

A value-added tax (VAT) is a consumption tax charged at each stage of producing and selling goods or services, collected by businesses on behalf of the government. Think of it as a small extra charge added along a supply chain that companies remit to tax authorities; for investors it affects pricing, profit margins, cash flow and regulatory risk because firms must manage collection, reporting and potential refunds across jurisdictions.

social insurance contributions financial

"Social insurance contributions paid by enterprises for their employees are deductible"

Payments that employers and employees must make to government-run programs such as pensions, healthcare, unemployment and disability insurance; think of them as mandatory subscriptions that fund a public safety net. They matter to investors because these required payments increase a company’s labor costs and affect workers’ take-home pay, which can influence profit margins, hiring decisions and consumer spending.

ai technology technical

"improve service quality, and introduce AI technology. The company will"

AI technology is software and systems that learn from data to recognize patterns, make predictions, or automate decisions and tasks—like a virtual assistant that gets better the more examples it sees. Investors care because AI can reduce costs, create new products and revenue streams, and change competitive advantages, while also adding execution, ethical and regulatory risks that can affect a company's profits and valuation.

AI-generated analysis. Not financial advice.

FUZHOU, China, Feb. 6, 2026 /PRNewswire/ -- E-Home Household Services Holdings Limited (NASDAQ:EJH) (the "Company" or "eHome"), an integrated home services provider in China, announced today that the company will fully leverage new tax incentives to enhance financial management, strengthen training for domestic service personnel, improve service quality, and introduce AI technology. The company will progressively roll out a human-machine integrated service model and make effective use of tax benefits to increase staff deployment rates, propelling its performance to new heights by 2026.

Key support directions for China's 2026 tax policies targeting the domestic service industry: 1. Domestic service enterprises may benefit from a reduction or exemption of VAT on income derived from providing domestic services, as stipulated. 2. Social insurance contributions paid by enterprises for their employees are deductible when calculating taxable income, thereby reducing corporate tax burdens. 2. Eligible home service enterprises may benefit from preferential corporate income tax rates. Training expenses incurred by enterprises for home service personnel can be deducted at an increased rate when calculating taxable income, which encourages enterprises to enhance the skills of home service workers. 3. Taxpayers who support elderly dependants or raise children may qualify for special additional deductions under personal income tax regulations, which indirectly stimulates demand for home services.

Mr. Wenshan Xie, Chairman and CEO of E-Home, commented: "The specific benefits of the 2026 tax reform for the domestic service industry are as follows: 1. Reducing corporate operating costs directly lowers the tax burden on domestic service enterprises, freeing up more capital for improving service conditions, enhancing compensation for domestic workers, and elevating service quality. 2. Stimulating market demand through the special additional deductions for individual income tax alleviates the financial burden of family elder care and childcare, thereby boosting demand for domestic services and expanding the industry's market potential. 3. Standardizing industry development: Policy implementation compels home service enterprises to strengthen financial management and compliant operations, driving the industry toward standardization and professionalization. Tax reform will promote sustainable industry growth, enhance societal recognition of the sector, and spur innovative development."

About E-Home Household Service Holdings Limited

Established in 2014, E-Home Household Service Holdings Limited is a Nasdaq-listed household service company based in Fuzhou, China.

The company is mainly involved in: 1. Home appliances, smart home installation, maintenance; 2. Housekeeping, nannies, maternity matron and cleaning services; 3. Internet aging + home care; 4. Units of public places cleaning. After years of development, E-Home has formed two main business channels, ToB and ToC, with two important subsidiaries.

Two main channels: 1. The ToC business to nanny, maternity matron, home care, cleaning, repair, maintenance of family integrated services. 2. The ToB business to public cleaning. Two subsidiaries: 1. Zhongrun Pharmaceutical, integrating pharmaceutical warehousing, distribution, wholesaling, retailing, and online sales; 2. Chuangying: presidential training, internal training, corporate consulting and counseling, and policy counseling. E-Home has been a comprehensive service enterprise for family life! We have always adhered to the "solving every issue of customers with heart" business philosophy, adhere to do the industry benchmark. For more information, visit the Company's website at http://www.ej111.com/ir.html. 

Forward-Looking Statement

All statements other than statements of historical fact in this announcement are forward-looking statements in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions are intended to identify such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to consider risk factors, including those described in the Company's filings with the SEC, that may affect the Company's future results. All forward-looking statements attributable to the Company and its subsidiaries or persons acting on their behalf are expressly qualified in their entirety by these risk factors.

 

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SOURCE E-Home Household Service Holdings Limited

FAQ

What VAT change could affect E-Home (EJH) under China’s 2026 tax reform?

Domestic service income may be eligible for VAT reduction or exemption, lowering transaction tax costs. According to the company, this change could free cash for service upgrades, compensation, and reinvestment into staff training and AI integration.

How will the 2026 tax rules on social insurance affect E-Home (EJH) taxable income?

Employer social insurance contributions may be deductible when calculating taxable income, reducing corporate tax burdens. According to the company, that deduction could improve cash flow and support expanded staff deployment and service quality initiatives.

What training-related tax benefit did E-Home (EJH) highlight for 2026?

Training expenses for home service personnel can be deducted at an increased rate, encouraging skills investment. According to the company, this incentive supports professionalization and higher service standards through subsidized workforce upskilling.

Will personal income tax changes boost demand for E-Home (EJH) services in 2026?

Special additional deductions for supporting elderly dependants or raising children may stimulate household demand for care services. According to the company, these personal tax measures could expand the market for home services over the near term.

How does E-Home (EJH) plan to use tax benefits to improve operations by 2026?

The company plans to enhance financial management, strengthen worker training, raise service quality, and roll out human-machine integrated services. According to the company, tax savings will fund staffing, AI adoption, and professionalization efforts.