By Zoey Zhang, Dezan Shira & Associates
As the outbreak of the novel coronavirus in China hampers business activity, regional governments are rolling out a slew of measures to support small and medium-sized enterprises (SMEs).
In this article, we provide you the most updated information on local measures that have been released in different regions of China.
On February 5, 2020, the Beijing government announced 16 preferential policies to sustain the production and operation of SMEs, including policies on taxation, finance, social security, subsidies, and rent reduction.
The 16 measures are applicable to micro, small, and medium-sized enterprises, including foreign enterprises, that were registered in Beijing and are in line with the Standard for the Classification of SMEs (MIIT Enterprise  No.300).
Here, we sort out the most noteworthy measures as below (the 16 measures in Chinese are available here):
The above measures have come into force immediately and should remain in force until the end of 2020, unless an individual policy has clarified an earlier deadline.
In addition to these 16 measures, according to the Beijing Municipal Human Resources and Social Security Bureau (HRSSB), Beijing will temporarily extend the payment period of social insurance premiums payable in January and February to the end of March and may continue to relax the time limit depending on the epidemic situation (see the official announcement here).
On February 3, 2020, Shanghai Municipal HRSSB announced four measures to help enterprises combat challenges arising from the coronavirus outbreak, including:
Please see our article here for detailed information.
On February 9, 2020, the city rolled out another 28 measures to support enterprises fight against the novel coronavirus (you may find the English version of the 28 measures here or the original Chinese document here).
Here, we have filtered out some important policies more relevant to foreign enterprises:
The 28 measures are in effect as of the date of issuance and won’t expire until three months after the epidemic is resolved.
You may also find Shanghai’s supporting policies by district: Huangpu District, Jing’an District, Pudong New Area, and more districts from here and Lingang New Area policies from here.
On February 6, 2020, Guangdong province released 20 measures to support all enterprises in resuming production and operation (the 20 measures in Chinese available here).
This includes but not limited to the following policies:
These policies will be effective for three months after the date of the issuance.
Moreover, to help easing the tax burden on enterprises producing materials for epidemic prevention and control, Guangdong’s provincial tax bureau has released various useful tax policies.
You may check the consolidated tax policies here to see whether you can enjoy any of the tax incentives or contact us for help at email@example.com.
Of course, similar policies have been adopted by other regions as well.
On February 2, Suzhou city government announced ten measures to shore up the confidence of SMEs (see the official announcement here).
On February 4, Shandong province became the first province releasing measures to support SMEs. The 20 measures released cover policies on finance, taxation, social security, and rent reduction (the document in Chinese can be found here).
On the same day, February 4, Chongqing also released 20 measures for SMEs (the document in Chinese available here).
On February 5, Hunan tax bureau released 10 tax measures to support the anti-virus campaign and business affected, including reducing property tax and urban land use tax and deferring tax filing and payment deadline (see the original announcement here).
On February 5, Sichuan province proposed 13 measures to ease financial burdens on SMEs (see the official announcement here).
On February 6, Liaoning province released 25 similar measures to support SMEs (see the official document here).
On February 7, Fujian province announced 24 measures to support enterprises in resuming production and operation (the official link is here).
We’ll continue monitoring the local incentives. If businesses need assistance with applying for these incentives, please contact us at firstname.lastname@example.org.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at email@example.com.
We also maintain offices assisting foreign investors in Vietnam, Indonesia, Singapore, The Philippines, Malaysia, and Thailand in addition to our practices in India and Russia and our trade research facilities along the Belt & Road Initiative.
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