Reducing taxes and rents will help overcome these difficulties! Shanghai issues 28 more enterprise support policies

The 14th press conference of the Shanghai Epidemic Prevention and Control Leading Group held this morning revealed that in order to fully support enterprises in fighting the epidemic and effectively reduce the burden on enterprises, the city has issued the "Shanghai Municipal Epidemic Prevention and Control Support" "Several Policies and Measures to Serve the Stable and Healthy Development of Enterprises", which proposes 28 comprehensive policy measures: including increasing fiscal and tax support for key epidemic prevention enterprises, reducing or exempting corporate house rents, providing tax incentives to relevant enterprises and individuals, and exempting individual industrial and commercial households from regular fixed amounts of taxes. We will shoulder the burden, appropriately reduce employee medical premium rates, etc., make every effort to prevent and control the epidemic, and support the stable and healthy development of service companies. For details, please see ↓

Several policies and measures (summary) for Shanghai to fully prevent and control the epidemic and support the stable and healthy development of service enterprises

1. Fully support enterprises to fight against the epidemic

(1) Increase financial and taxation support for key epidemic prevention enterprises. In accordance with national policies and regulations, enterprises that produce key materials for epidemic prevention and control and purchase new equipment to expand production capacity are allowed a one-time deduction before income tax, and the incremental value-added tax credit will be fully refunded. Taxpayers' income from transporting key supplies for epidemic prevention and control, providing public transport services and daily services, and providing express delivery and collection services for essential daily supplies to residents are exempt from value-added tax. Registration fees are waived for relevant anti-epidemic drugs and medical devices. The civil aviation development fund payable by civil aviation companies is exempted. For enterprises requisitioned by the government for emergency production of designated key epidemic prevention materials, policy losses caused by production costs being higher than the actual selling prices will be fully subsidized by the municipal finance. If key anti-epidemic materials for export that an enterprise has signed an export contract are converted to domestic sales due to government expropriation, the enterprise will not bear the resulting increased tax burden. Reward enterprises and individuals who have the courage to shoulder social responsibilities in the fight against epidemic prevention and control.

(2) Strengthen special financial credit support for key epidemic prevention enterprises. Encourage the Shanghai branches of development-oriented, policy-oriented, state-owned large commercial banks and local corporate banks to actively use the People's Bank of China's special re-loan policy to key enterprises that produce, transport and sell key medical prevention and control materials and daily necessities, including small and micro enterprises. Provide loans with preferential interest rates, and the finance department will provide half of the interest discount to ensure that the corporate loan interest rate is lower than 1.6%. Support financial institutions in Shanghai to use the funds raised in areas related to epidemic prevention and control through the issuance of financial bonds, special-purpose bonds, etc.

(3) Expand direct financing channels for enterprises related to epidemic prevention and control. Give full play to its role in the Shanghai financial market, strengthen services for enterprises related to epidemic prevention and control, and support their issuance and listing, refinancing, mergers and acquisitions, and the issuance of bonds and asset-backed securities. Support and encourage scientific and technological innovation enterprises related to epidemic prevention and control to be listed on the Shanghai Stock Exchange's Science and Technology Innovation Board. Encourage venture capital and equity investment institutions to guide social capital investment in related medical equipment, vaccine and drug R&D and production enterprises.

(4) Strengthen the role of insurance protection. In response to the import demands of enterprises in urgent need of medical supplies and epidemic prevention and control supplies, China Sinosure Shanghai Branch is encouraged to actively carry out import advance payment insurance. For insurance claims customers who have been damaged by the epidemic, we will make sure that all compensation is paid quickly. Insurance institutions are encouraged to provide free accidental injury and term life insurance protection to medical staff and epidemic prevention workers who support Hubei and participate in epidemic prevention and control. Support the expansion of insurance liability coverage such as accident insurance and disease insurance to include pneumonia caused by the new coronavirus.

(5) Support enterprises supplying and marketing key epidemic prevention materials to expand production and capacity and increase imports. Technical transformation subsidies will be provided to enterprises requisitioned by the government for emergency purposes. For emergency technological transformation projects implemented by expropriated enterprises for the production of epidemic prevention materials, financial subsidies of 50%-80% of the total project investment will be provided after identification. Up to full support can be provided for the investment in the production capacity of emergency requisitioned enterprises to produce specific epidemic prevention materials designated by the government. After the epidemic prevention and control work is over, if it is really difficult for the company to digest the remaining materials generated by the government's requisition or designated production by continuing to sell them, it will be solved through government reserves and underwriting in accordance with regulations; there will still be surplus materials after overall planning and allocation of imported medical materials. If the imported civilian prevention and control materials of the specified purchased varieties and quantities are indeed difficult to digest after continued sales by the enterprise, they will be included in the municipal reserve commodities in accordance with the prescribed procedures.

(6) Implement tax incentives for imported epidemic prevention materials. In accordance with national policies and regulations, imported materials donated for epidemic prevention and control are exempt from import tariffs, import value-added tax, and consumption tax. Materials directly used for epidemic prevention and control organized by the municipal health department are exempt from tariffs. The tax-deductible amount will be refunded.

(7) Establish a green channel for rapid customs clearance of imported epidemic prevention materials. Special windows and green channels have been opened to accept imported epidemic prevention materials, and major import ports have implemented 24/7 customs clearance. Comprehensive use of two-step declaration, advance declaration and other operating modes, priority arrangements for inspection of epidemic prevention materials that really need inspection, inspection on arrival, and rapid inspection and release. Duty-free imported epidemic prevention materials can be registered and released first, and relevant certificates can be provided later.

(8) Support the research and development of innovative products for epidemic prevention and control. Organize and implement the city's special project on the research and development and industrialization of innovative new coronavirus diagnosis and treatment products, provide support through special funds for strategic emerging industries, special funds for industrial transformation and upgrading, special funds for scientific and technological innovation plans, and other channels to promote the rapid formation of innovative products for epidemic prevention and control Effective production capacity and put into application.

2. Effectively reduce the burden on various enterprises

(9) Reduce or reduce corporate housing rents. Small and medium-sized enterprises that rent commercial properties of state-owned enterprises in this city (including various development zones and industrial parks, entrepreneurial bases and technology business incubators, etc.) to engage in production and business activities will be exempted from rent for two months in February and March; for indirect Leasing companies should ensure that rent reductions and exemptions are implemented so that the actual operating small and medium-sized enterprises can ultimately benefit. State-owned enterprises are encouraged to transfer as much profit as possible to small and medium-sized enterprises through reduction, exemption, deferment of payment, etc. under consultation, and the impact of relevant revenue reductions will be recognized in the evaluation of operating performance. Encourage various market operating entities such as large commercial buildings, shopping malls, and parks to reduce or reduce rents for tenants operating entities. Enterprises that take the initiative to reduce or reduce property or land rent for tenants and have difficulty paying property tax and urban land use tax can apply for reduction or exemption of the corresponding property tax and urban land use tax.

(10) Delay in filing tax returns. During the epidemic prevention and control period, due to the impact of the epidemic, taxpayers who have difficulty in filing declarations within the statutory period may apply for a further extension in accordance with the law. For those who have difficulty paying taxes on time due to the impact of the epidemic and meet the conditions for deferred tax payment, they will be allowed to defer tax payment in accordance with the law, with the maximum period not exceeding 3 months. Taxpayers who fail to declare and pay taxes on time due to the impact of the epidemic can be exempted from corresponding late payment fees and tax administrative penalties upon confirmation by the competent tax authorities.

(11) Provide tax incentives to relevant enterprises and individuals. During the epidemic prevention and control period, enterprises whose properties or land have been requisitioned by the government for emergency purposes and have difficulty paying property tax and urban land use tax can apply for exemption or reduction of the corresponding property tax and urban land use tax. In accordance with national policies and regulations, the maximum carryover period for losses incurred by enterprises in difficult industries that are greatly affected by the epidemic in 2020 has been extended from 5 years to 8 years. Social forces are encouraged to actively donate cash and materials for epidemic prevention and control, which can be fully deducted before income tax in accordance with regulations. Related donated goods are exempt from value-added tax, consumption tax and surcharges. For medical personnel and epidemic prevention workers who participate in epidemic prevention and control, the subsidies and bonuses obtained in accordance with the standards set by the government, as well as the epidemic protective equipment issued to individuals by their units, are exempt from personal income tax.

(12) Exempt regular fixed-amount individual industrial and commercial households from the tax burden. During the epidemic prevention and control period, individual industrial and commercial households that pay regular fixed taxes are exempted from paying fixed taxes in accordance with the law.

(13) Temporarily refund tourism service quality guarantee deposits and subsidies for cultural undertaking construction fees. In accordance with national policies and regulations, starting from February 5, 2020, 80% of the tourism service quality guarantee deposit will be temporarily refunded to travel agencies with standardized operations and good reputation, and will be returned before February 5, 2022. Payers of cultural undertaking construction fees in the life service industry will be given certain financial subsidies depending on their degree of impact from the epidemic and the actual amount of fees paid.

3. Increase financial assistance to help enterprises out of difficulties

(14) Provide financial support to enterprises through multiple channels. Encourage Shanghai Pudong Development Bank, Bank of Shanghai, and Shanghai Rural Commercial Bank to increase credit to industries that are fighting the epidemic and affected by the epidemic as well as small, medium and micro enterprises. During the epidemic prevention and control period, the relevant loan interest rates shall be reduced by at least 25% based on the loan market quotation rate (LPR) for the same period. basis points, and other financial institutions in Shanghai are encouraged to follow suit. Establish a green channel for financial services to facilitate the production and supply of key epidemic prevention materials and other related enterprises. Financial institutions are encouraged to use platforms such as Bank-Tax Interaction and Shanghai Big Data Inclusive Finance Application to increase credit loan support for small and medium-sized enterprises through measures such as performance appraisal adjustments and increasing NPL tolerance.

(15) Increase support for enterprises with liquidity difficulties. Increase credit support for industries that have been greatly affected by the epidemic, such as tourism, accommodation and catering, wholesale and retail, transportation, logistics and warehousing, culture and entertainment, exhibitions, etc., by changing repayment arrangements, extending repayment periods, and renewing loans without principal repayment. We will provide support to enterprises that have difficulty repaying their due loans, and will not withdraw loans, continue to lend, or suppress loans. Accelerate the establishment of an online loan renewal mechanism. If a loan is overdue due to the impact of the epidemic, the relevant loan classification and rating standards can be reasonably adjusted.

(16) Strengthen financing guarantee support. Further leverage the city's policy financing guarantee fund to ensure that new policy financing guarantee loans in 2020 increase by more than 3 billion yuan compared with the previous year. Policy financing guarantee funds will continue to increase financing guarantee support for enterprises that provide key supplies for epidemic prevention materials and small, medium and micro enterprises that have been greatly affected by the epidemic. The financing guarantee rate for newly applied small, medium and micro enterprise loans will be reduced to 0.5% per year, and the re-guarantee rate will be halved. Guarantee fees for entrepreneurial guaranteed loans will continue to be exempted.

4. Efforts should be made to assist enterprises and stabilize employment

(17) Continue to implement the policy of returning unemployment insurance to stabilize employment. In 2020, this city will continue to refund 50% of the total unemployment insurance premiums actually paid by the units and their employees in the previous year to eligible employers that do not lay off employees, have fewer employees, and meet certain requirements.

(18) Postponing the adjustment of the social security payment base. Starting from 2020, the start and end dates of the city’s employee social insurance payment year (including the employee medical insurance year) will be adjusted from July 1 of the current year to June 30 of the following year, postponed by 3 months (the 2019 employee social insurance payment year will be postponed to July 1, 2020).

(19) The social insurance payment period can be extended. Due to the impact of the epidemic, if the city's social insurance participating units, flexible employment personnel and urban and rural residents fail to register for insurance and pay social insurance premiums on time, they will be allowed to make up for it after the epidemic is over.

If the insured unit pays social insurance premiums overdue, after reporting to the city's social security agency, no late payment fees will be charged, and the personal rights and interests records of the insured employees will not be affected. The relevant back-payment procedures can be completed within 3 months after the epidemic is lifted.

(20) Implement training fee subsidy policy. For various enterprises in this city affected by the epidemic, those who organize employees (including labor dispatch personnel working in the enterprise) to participate in various online vocational training during the shutdown period will be included in the scope of additional special funds for local education in each district to subsidize enterprise employee training, in accordance with the Actual training costs are 95% subsidized. Platform companies (e-commerce companies) and new business format companies can refer to and implement this.

(21) Appropriately reduce employee medical premium rates. Based on the revenue and expenditure of the medical insurance fund, and on the premise of ensuring that the level of medical insurance benefits for insured persons is not reduced and the smooth operation of the medical insurance system is ensured, the unit payment rate for employee medical insurance will be temporarily reduced by 0.5 percentage points in 2020.

(22) Implement flexible employment policies. Enterprises that have difficulties in production and operation due to the impact of the epidemic can stabilize their jobs through salary adjustments, job rotations, flexible working hours, and comprehensive adjustments to the use of rest days within the year. The specific methods are determined by the enterprise through consultation with employees.

5. Promote the resumption of work and production of enterprises in an orderly manner

(23) Do a good job in ensuring services for the resumption of work and production of enterprises. Supervise and help enterprises that resume work and production implement epidemic prevention safety measures. Focus on the needs of various enterprises for resumption of work and production and operation, and strengthen the supply of epidemic prevention materials such as masks, thermometers, and disinfectants. Relying on the Yangtze River Delta regional cooperation mechanism, we will give full play to the role of professional organizations such as industry associations and industry alliances, strengthen business docking through raw material supply, logistics and transportation, and other methods, and effectively help companies resume production and work.

(24) Strengthen enterprise employment security. Based on the enterprise's self-management of epidemic prevention and control preparations and risk assessment, enterprises are guided to prioritize the return of employees to areas where the epidemic is stable for employment. Promote the docking of employment supply and demand, build an enterprise employment docking service platform, carry out various online recruitment activities through WeChat, the Internet, video and other channels, smooth the docking channels between enterprises, and help enterprises alleviate recruitment difficulties and conflicts.

(25) Cultivate and support the development of new technologies, new models and new business formats. Accelerate the cultivation of new business formats and models such as online shopping, online education, online office, online services, digital entertainment, digital life, and smart distribution, vigorously develop online diagnosis and treatment, original new drugs, medical supplies, medical equipment and other health industries, and support a number of high-growth industries Innovative small and medium-sized enterprises. Increase the support of science and technology innovation vouchers to technology-based small and medium-sized enterprises. In 2020, the upper limit for the use of science and technology innovation vouchers accepted will be increased from 300,000 yuan to 500,000 yuan. Support telecom operators to provide free cloud office services such as cloud video conferencing for more than 6 months to small and medium-sized enterprises severely affected by the epidemic.

6. Optimize the business environment for enterprise services

(26) Optimize the enterprise service mechanism. Actively give play to the business-friendly service role of "one-stop service" for government services, strengthen the functions of citizen homepages and enterprise-specific webpages, expand the coverage of the "sponsored application" super application service, rely on the city's "Enterprise Service Cloud" to open up the "last mile" of policy services, and accelerate Promote the implementation of a batch of face-to-face approval matters. A special service window for small and medium-sized foreign trade enterprises has been opened on the international trade "single window" platform to facilitate enterprises to handle a package of import and export businesses such as customs clearance, logistics, and finance without meeting in person during the epidemic prevention and control period. Further leverage the role of the Municipal Service Enterprise Joint Meeting to promptly respond to and resolve enterprises’ bottlenecks and pain points in production, operation, investment and financing.

(27) Improve the corporate credit repair mechanism. Actively assist companies that have been dishonest due to the epidemic to carry out credit repair work. For companies that have temporarily lost their sources of income due to the epidemic, they can submit credit records based on adjusted repayment arrangements. Companies that engage in untrustworthy behavior such as delayed delivery, delayed loan repayments, or overdue contracts due to their participation in epidemic prevention work will not be included in the untrustworthy list. For companies that are unable to perform as scheduled or cannot perform international trade contracts due to the epidemic, the Shanghai Council for the Promotion of International Trade is supported in issuing factual certificates of force majeure.

(28) Strengthen legal service guarantees. Establish an emergency public legal service mechanism, giving priority to online, appointment-based and other methods for notarization, legal aid and other legal services. Provide timely guidance and advice to enterprises and institutions in need on legal issues related to epidemic prevention such as force majeure exemptions. For disputes over contract performance, labor relations and other disputes caused by enterprises affected by the epidemic, professional legal service personnel such as lawyers, notaries, and mediators are promptly organized to provide consultation, guidance, and mediation services.

If the state has policies and measures to support the stable and healthy development of other service enterprises, Shanghai will comply with them. Relevant departments of the municipal government are responsible for formulating and issuing detailed implementation rules for this policy and measures; district governments can issue specific implementation measures based on actual conditions. The implementation period of this policy and measure will be effective from the date of issuance, and will be valid until the end of the pneumonia epidemic caused by the new coronavirus infection, and will be extended for another three months (if specific policies and measures have clearly defined the implementation period, those provisions shall prevail).

Source: Released in Shanghai