On March 28, 2022, the Shanghai municipal government issued Several policies and measures for Shanghai to fight the epidemic and help enterprises promote development.
I. Subsidies for epidemic prevention and control measures. – mainly aimed at the personnel and enterprises directly involved in the front line of epidemic prevention and control
1. For retail and catering industries, the expenses for regular PCR tests of employees in key positions in accordance with the requirements of epidemic prevention are fully reimbursed, and allowance will be given as to the expenses for disinfection and sterilization. For airports, ports and cold chain related enterprises, expenses for PCR tests of employees are fully reimbursed.
2. Temporary subsidies is given to front-line anti-epidemic personnel.
3. Support the R & D and industrialization of innovative novel coronavirus prevention and control products.
II. Reduce the burden for enterprises in relevant industries, including VAT rebate, tax and charges reduction, rent reduction, etc.
1. VAT rebate. Priority will be given to small and micro enterprises, for which the amount of unused incoming VAT will be refunded in full before the end of June 2022, and the amount of new incoming VAT will be refunded in full on a monthly basis from April 1, 2022.
2. Tax and charges reduction. Small scale taxpayers are exempted from value-added tax; the enterprise income tax of small low profit enterprises will be halved for those with an annual taxable income of more than 1 million RMB but no more than 3 million RMB; the proportion of additional deduction of R & D expenses of science and technology SMEs is increased to 100%; and the pre-tax deduction of equipment and instruments of small and medium/ micro enterprises is reinforced.
3. Extend the tax declaration period.
4. Small and micro enterprises that lease state-owned houses for production and business activities are exempted from three months' rent in 2022. If they are in the administrative area where the epidemic is at medium and high risk in 2022 or their business activities are seriously affected due to the implementation of epidemic prevention requirements, they are exempted from another three months' rent, totaling six months' rent throughout the year.
III. Financial support.
1. Finance guarantee support. Promote the government finance guarantee firms to provide credit enhancement support for qualified SMEs and micro enterprises. For bank loans newly borrowed in 2022 by key epidemic prevention enterprises and SMEs and micro enterprises greatly affected by the epidemic, the financing guarantee rate of the Municipal Financing Guarantee Center will be reduced to 0.5%.
2. Interest subsidy. For the enterprises in retail, transportation and other industries greatly affected by the epidemic, the relevant competent departments shall determine the list of enterprises after review and give interest subsidy of the new loans in 2022.
3. General financing. Guide financial institutions to increase the provision of loans to SMEs, and will not blindly withhold loans, withdraw, cut off or suppress loans for enterprises affected by the epidemic.
4. Promote financial institutions to reduce fees and charges. Promote financial institutions to reduce bank account service charges, RMB transfer and remittance fees, credit card commission charge, etc.
IV. Help enterprises keep jobs
1. Continue to implement the policy of reducing unemployment and work injury insurance rates — 1% unemployment insurance rate and the rate of work injury insurance decreased by 20%.
2. Training subsidies, entrepreneurship support, return of trade union funds, etc. Various enterprises and social organizations that carry out vocational skills training for employees shall be given online vocational training subsidies according to regulations; Entrepreneurial organizations and individuals greatly affected by the epidemic can apply for extended repayment of entrepreneurial guarantee loans and interest subsidy; The funds paid to the trade unions of small and micro enterprises is fully refunded.
3. Support and normalize the development of new forms of employment, support employers to adopt modes such as shared employment, and improve social security policies for flexible employment.
V. Support the recovery and development of difficult industries
1. For catering and other life service industries: guide the Internet platform to reduce the service fees and commissions of catering, accommodation, housekeeping and other life service enterprises affected by the epidemic.
2. For the retail industry: financial institutions are encouraged to increase credit support and reduce loan interest rates for enterprises listed in the support list.
3. For the transportation industry: the advance payment of VAT by air and railway transportation enterprises is suspended in 2022, and the VAT on public transportation services is exempted.
VI. Safeguard the production and operation of enterprises
Adjust and optimize the prevention and control measures according to the changes of the epidemic situation, and effectively restore and maintain the normal order of enterprise development. Support enterprises and projects to resume production and construction, and effectively help solve problems such as personnel arrival, material transportation, epidemic prevention and control, etc. Help enterprises stabilize the industrial chain and supply chain, support key enterprises and supporting enterprises to resume production, and implement differentiated epidemic prevention measures of "one enterprise, one policy" and "one factory, one case".
Written by: Adv. Monica Han