UPDATES OF GOVERNMENT SUPPORTS – SHANGHAI

On 7 February 2020, the Shanghai Municipal Government issued various measures to support enterprises under the coronavirus crisis.  The summary is listed as below:

1. Proposed a number of measures to support enterprises in fighting against the coronavirus, such as exempting certain government charges, providing subsidies, encouraging financial institutions to strengthen the financing supports to enterprises by providing preferential interest rate loans, enhancing financing options of relevant enterprises, strengthening the protection of insurance, supporting suppliers of anti-epidemic supplies to expand investments and imports. Granting subsidies to qualified enterprises and projects, establishment of rapid clearance channels for imported anti-epidemic supplies, supporting the development of innovative products for prevention and control of coronavirus, etc.
2. Proposed a number of measures to reduce the financial burden on enterprises, such as encouraging the landlords to reduce or exempt property rentals, extending tax reporting deadline and tax payment deadline, offering tax incentives, exempting the eligible sole proprietors from taxes, temporarily refunding the deposits for Quality Assurance Fund to travel agencies, offering subsidies to Construction Fee of Cultural Entities, etc.
3. Working with financial institutions to assist enterprises to stabilize cash flow andreduce financing costs.  Strengthening the supports for financing guarantee.
4. Offering incentives, such as refund of Unemployment Insurance Contributions, to enterprises not laying off employees under this coronavirus crisis.  Providing subsidies to help enterprises for stabilizing jobs and employment.
5. Deferring the adjustment to social insurance, extending the payment of social insurance, reducing the medical insurance premium for employees.
6. Implementing a flexible employment policy for annual rest days, providing subsidies to enterprises for providing trainings to employees.
7. Encouraging enterprises to resume operations and productions in and orderly fashion.  Assist enterprises in securing the employment of staff.

The above measures are valid from 7 February 2020 to three months after the end of the coronavirus epidemic, unless otherwise specified.

For details, please refer to the  official link (Chinese only).

Should you have any questions on these, please do not hesitate to contact us.