UPDATES OF THE PRC GOVERNMENT SUPPORTS
On 25 February 2020, Chinese Premier Li Keqiang chaired the executive meeting of the State Council, the following was determined in the meeting:
- From 1 March 2020 to the end of May 2020, small-scale taxpayers in Hubei Province are exempted from value-added-tax and the value-added-tax rate for small-scale taxpayer in other cities will be reduced from 3% to 1 %.
- Exempted from making contributions to old-aged insurance, unemployment insurance and work-related injury insurance:- From February 2020 to June 2020: Exemptions are granted to enterprises and sole proprietors in Hubei Province- From February 2020 to June 2020: Exemptions are granted to small, medium and tiny enterprises and sole proprietors in cities other than Hubei Province
– From February 2020 to April 2020: 50% exemptions are granted to large enterprises in cities other than Hubei Province
- Working with financial institutions to provide low-interest loans to sole proprietors.
- To reduce, by stages, the electricity charge of enterprises by 5%, except for energy-intensive industries.
- Encouraging all cities to reduce or waive local surcharges and levies, such as urban land use taxes, to support the landlords in reducing the rental of sole proprietors.
Fo rpolicy details, please refer to the following official web link (Chinese only).
If you have any questions about the above measures, please contact us.