CHINA Shanghai launches policies to support enterprises amid coronavirus outbreak

CHINA

Shanghai launches policies to support enterprises amid coronavirus outbreak

Global Times

03:53, February 09, 2020

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An employee of Chinese face mask maker Dasheng Health Products Manufacture Co works at the company's factory in Shanghai, East China on Friday. (Photo: GT)

Shanghai on Saturday proposed 28 comprehensive policies and measures, including tax preference, rent reduction, and financial assistance, to fight the novel coronavirus pneumonia (NCP) and support the stable and healthy development of enterprises.
The measures were released at the 14th press conference of  the city's NCP prevention and control team, according to a post by the Information Office of Shanghai Municipality on Sina Weibo Saturday.
Shanghai will increase financial and tax support for NCP epidemic prevention enterprises, said the report. 
According to national policies and regulations, enterprises engaged in key materials production will be allowed one-time deduction before income tax and refund the Value Added Tax increment tax amount in full when expanding their production capacity and purchasing new equipment.
The city will also strengthen special financial and credit support for enterprises, such as encouraging the development-oriented, policy-oriented and large-scale state-owned commercial banks in Shanghai and local legal person banks to actively use the special re-loan policy of the People's Bank of China, besides providing preferential interest rate loans to key enterprises.
Policies such as expanding the direct financing channels, strengthening the role of insurance, establishing a green channel for the rapid clearance of imported materials for NCP prevention and control, and support research and development of innovative products for NCP prevention and control were introduced at the conference as well.
According to the report, Shanghai will reduce and remit the rent of the houses of enterprises, postpone the declaration and tax payment, give tax preference to the relevant enterprises and individuals, and exempt the tax burden of the individual industrial and commercial households regularly to reduce the burden for all kinds of enterprises.
The city will provide and increase financial support and assistance to enterprises, and take measures to help enterprises stabilize their posts, including continuing to implement the policy unemployment insurance, postponing the adjustment of social security payment base, extending the payment period of social insurance, and reducing the medical insurance rate for employees.
The report also said Shanghai will strengthen the labor security of enterprises and cultivate and support the development of new technology to encourage enterprises to resume production, improve the mechanism of enterprise credit restoration and strengthen the protection of legal services to optimize the business environment for enterprises.
As of Saturday noon, 281 confirmed cases of NCP have been reported in Shanghai. Among them, 30 patients have been discharged from hospitals after recovery while one died.


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