Following through the important instructions of General Secretary Xi Jinping on winning the battle against NCP epidemic and the decisions and plans of the CPC Central Committee and the State Council on epidemic prevention and control, we formulated the following policies and measures to encourage and facilitate SMEs in Jiangsu to resume production and operation at the earliest possible date. The policies and measure are aimed at maintaining stable and healthy economic development by mitigating NCP epidemic impact, overcoming difficulties in production and operation, enhancing response capability, and boosting confidence in future development.
I. Lightening burdens on enterprises
1. Tax and fee reliefs
SMEs heavily affected by the epidemic or facing material losses are entitled to applying for tax deduction or exemption on property tax and urban land use tax. Individual or self-employed businesses engaging in passenger transport, catering and accommodation are entitled to applying for lump-sum tax adjustment, and amongst which whose tax payables are below the threshold after adjustment are exempt from tax obligation. Key producers of epidemic prevention and control supplies are entitled to applying to local tax authorities for full tax refund of excess VAT paid out of their increment on a monthly basis. During the epidemic period, inspection and testing charges on SMEs, as well as inspection charges on relevant special equipment are reduced or exempted; registration fees of relevant drugs and medical devices and products are exempted. Meanwhile, inspections will be arranged to make sure that tax and fee reliefs are earnestly implemented to benefit the eligible enterprises. (Responsible authorities: Jiangsu Provincial Tax Service, Jiangsu Provincial Department of Finance, Jiangsu Provincial Administration for Market Regulation, and the people’s governments of all prefecture-level municipalities in Jiangsu)
2. Grace period for tax declaration and payment
SMEs who are unable to make tax declarations on time due to the epidemic are allowed to postpone their tax declarations in accordance with the law, and SMEs who do have difficulties and are unable to pay taxes on time are allowed to postpone the payment of taxes in accordance with the law. Taxpayers who are unable to process administrative penalties on time due to the epidemic are allowed to postpone the process without aggravated punishment. (Responsible authorities: Jiangsu Provincial Tax Service, Jiangsu Provincial Department of Finance, and the people’s governments of all prefecture-level municipalities in Jiangsu)
3. Rent cost reduction for enterprises
During the epidemic period, SMEs that rent state-owned commercial properties are exempted from paying their rent of February and are entitled to paying only half of the rent of March and April. Industrial parks, innovation and start-ups bases for micro and small businesses, as well as incubators for technological enterprises of all types are encouraged to take the lead in rent deduction or waiver on rent of SMEs and micro businesses. Duration and sum of rent reduction or waiver are to be decided on the basis of reality at different localities. Those who respond promptly are given the priority to enjoy policy and proper financial support. Large commercial buildings and shopping malls that are built with private investment are encouraged to reduce or exempt rent for SMEs and commercial tenants. Companies who adopt rent reduction or exemption are entitled to local financial subsidy. (Responsible authorities: Jiangsu State-owned Assets Supervision and Administration Commission, Jiangsu Provincial Department of Science and Technology, Jiangsu Provincial Department of Industry and Information Technology, Jiangsu Provincial Department of Finance, Jiangsu Provincial Department of Commerce, and the people’s governments of all prefecture-level municipalities in Jiangsu)
4. Subsidy for operational cost
Corporate costs will be further reduced, so that market entities, SMEs in particular, will have greater sense of gain. Efforts will be made to give a grace period for SMEs with difficulties in operation during the epidemic to pay electricity, water and gas fees. Electricity, water and gas supplies must be guaranteed during the grace period, and local subsidy may be arranged. During the epidemic prevention and control period, enterprises that adopt the two-part tariffs may choose monthly basic electricity billing in accordance with the reality. Basic electricity expense can be exempted in accordance with the number of days when electricity usage is suspended. For enterprises in need of increased production capacity for combating the epidemic, if they choose the basic electricity billing on agreed maximum predicted demand, use level beyond 105% of the contracted agreed maximum demand will be charged on the basis of the actual amount. Double basic electricity billing is not applicable under the circumstances. Logistics enterprises in Jiangsu who are responsible for transporting supplies for epidemic prevention and control are entitled to the provincial subsidy to offset the logistics costs occurred. Agricultural and trading companies who claim to have engaged in providing supplies for epidemic prevention and control and daily necessities including major agricultural products, once confirmed by the local authorities, are entitled to subsidies for logistics costs. Operational input occurred during the epidemic by enterprises delivering public transport services will be fully born by the local governments. Taxi companies are encouraged to reduce or exempt rental fees for drivers who provide taxi services during the epidemic, and local subsidy may be arranged for those taxi companies. (Responsible authorities: Jiangsu Provincial Department of Finance, Jiangsu Provincial Development and Reform Commission, Jiangsu Provincial Department of Industry and Information Technology, Jiangsu Provincial Department of Agriculture and Rural Affairs, Jiangsu Provincial Department of Commerce, Jiangsu Electric Power Company, and the people’s governments of all prefecture-level municipalities in Jiangsu)
5. Greater interest subsidy
Additional loans shall be granted in 2020 to enterprises on the list of national key enterprises for epidemic prevention and control, and vigorous efforts shall be made to win the support from the special concessionary funds for relending of the People’s Bank of China and from the interest subsidies of the budget of the central government. Other enterprises engaged in health and epidemic prevention and control, pharmaceutical products, and medical equipment which play a significant role in preventing and controlling the epidemic will be given a certain amount of interest subsidies after examination and verification by the provincial financial authorities and other departments. Interest subsidies may also be arranged by local governments. (Responsible authorities: Jiangsu Provincial Department of Finance, Jiangsu Provincial Department of Industry and Information Technology, and the people’s governments of all prefecture-level municipalities in Jiangsu)
6. Paying SMEs’ receivables on time
During the epidemic, government departments, government-linked agencies and state-owned enterprises must take the initiative to pay the receivables to SMEs on time and in full, with arrears allowed with any excuse. We pledge that private enterprises shall respect and honor the contracts with SMEs, and large enterprises shall set a good example to be trustworthy business partners, both of whom shall pay the receivables to SMEs on time to help them prevail over the trying time. (Responsible authorities: Jiangsu Provincial Department of Industry and Information Technology, relevant departments of Jiangsu and the people’s governments of all prefecture-level municipalities in Jiangsu)
II. Stepping up financial support
7. Greater credit support
Enterprises on the list of national or provincial key enterprises for epidemic prevention and control will be entitled to preferential policies on interest payment. For inclusive loans granted during the epidemic, comprehensive financing cost shall be reduced by 50 basis points on the basis of the average comprehensive financing cost of enterprises of the same category at each financial institution over the previous year, amongst which, loan interest rate shall be reduced by at least 30 basis points. Banking institutions and local financial institutions shall facilitate SMEs affected by the epidemic to offset the negative impact by reducing interest rate, renewing loans without principal repayment, and increasing credit loans and mid-to-long term loans. They must refrain from terminating, partially extracting or withholding loans without sound reasons. Give full play to Jiangsu modern service risk reserves to deliver financing services for small and medium-sized service enterprises to increase credibility, and work with banking institutions to scale up credit supply by elevating credit line more than 10 times but less than 20 times of the baseline. Risk reserves will be tapped for compensation of losses in the first place. Better loan services will be delivered including special loans for small and micro businesses, farmers, and start-ups, by shortening filing time, and kicking off online service ASAP. Enterprises that are heavily affected by the epidemic or have difficulty in loan repayment are given priorities to have a grace period or relending opportunities. (Responsible authorities: People’s Bank of China Nanjing Branch, China Banking and Insurance Regulatory Commission Jiangsu Bureau, Jiangsu Provincial Development and Reform Commission, Jiangsu Provincial Department of Science and Technology, Jiangsu Provincial Department of Finance, Jiangsu Provincial Department of Agriculture and Rural Affairs, Jiangsu Provincial Department of Commerce, Jiangsu Provincial Administration for Local Financial Regulation, and the people’s governments of all prefecture-level municipalities in Jiangsu)
8. Stronger financing guarantee
More support will be given to guaranteeing micro, small and medium enterprises affected by the epidemic through removing obstacles to banking-guarantee institution cooperation, abolishing counter-guarantee requirements, improving processing efficiency, and further lowering down the charging rate of guarantee and re-guarantee services, with a reduction of 20% in charging rate by state-owned guarantee enterprises and a charging rate of not more than 1% by government-funded financing guarantee institutions. More interest subsidies will be provided to epidemic-affected individuals and enterprises with start-up guarantee loans. Individual borrowers suffering from NCP who have received start-up guarantee loans may apply to lending banks for a grace period for the repayment of loans whose extension period shall, in principle, not exceed one year, during which the financial department of government shall continue to give support with interest subsidies. Small and medium-sized enterprises that have won the bidding for government procurement may directly apply for loans with such contracts and have access to preferential interest rates and the green channel at cooperative financial institutions with no need to provide guarantee of any form. (Responsible authorities: Jiangsu Provincial Administration for Financial Supervision, Jiangsu Provincial Department of Finance, China Banking and Insurance Regulatory Commission Jiangsu Bureau, and the people’s governments of all prefecture-level municipalities in Jiangsu)
9. Improved financial services
In 2020, banking institutions across the province shall provide new loans to small and micro enterprises of the amount no less than the same period in 2019. A green channel for enterprises in difficulties due to the epidemic, set up on the provincial comprehensive financial service platform and planned to operate for six months, will provide medium-term liquidity loans (including non-repayment additional loans) and re-loans at preferential interest rates to small and medium-sized enterprises with selected provincial banking institutions and integrated resources of re-loan service companies (funds) of various kinds. The People’s Bank of China will provide re-loan rediscounts to small and medium-sized enterprises via the green channel, and the provincial finance will share a certain proportion of risks for the medium-term liquidity loans issued in the green channel. (Responsible authorities: China Banking and Insurance Regulatory Commission Jiangsu Bureau, Jiangsu Provincial Administration for Financial Regulation, People’s Bank of China Nanjing Branch, Jiangsu Provincial Department of Finance, and the people’s governments of all prefecture-level municipalities in Jiangsu)
10. Greater insurance support
Insurance institutions shall open a fast channel for settlement of insurance claims by backbone enterprises which produce such important medical supplies as medical masks, protective clothing and disinfectants as well as important daily necessities, to support their production resumption and ensure the supply. For small and medium-sized enterprises affected by the epidemic, the efficiency of claim settlement shall be improved with prepayment for the losses and other methods. (Responsible authorities: China Banking and Insurance Regulatory Commission Jiangsu Bureau, and the people’s governments of all prefecture-level municipalities in Jiangsu)
III. Stabilizing employment
11. Introducing policies to help enterprises reduce layoffs
The policy to refund unemployment insurance premiums paid by employers and employees will be put into place, according to which micro, small and medium enterprises in wholesale and retail, accommodation, catering, transportation, cultural and tourism industries heavily affected by the epidemic will be regarded as businesses in difficulties and such refunds will be granted to them in accordance with relevant provisions, and the application procedures will be simplified for small and medium-sized enterprises to effectively stabilize employment. Under the same conditions, priority will be given to processing applications for social insurance subsidies, post subsidies, and on-the-job training subsidies by small and medium-sized enterprises encountering temporary production and operation difficulties due to the epidemic, and priority will be given to approving those which meet the requirements after examination. (Responsible authorities: Jiangsu Provincial Department of Human Resources and Social Security, Jiangsu Provincial Department of Finance, and the people’s governments of all prefecture-level municipalities in Jiangsu)
12. Deferring payment of social insurance premiums
Enterprises incapable of paying social insurance premiums for the moment due to production and operation difficulties amid the epidemic may defer the payment of endowment insurance, unemployment insurance and work-related injury insurance premiums upon approval for a maximum of six months with exemption of overdue fines. (Responsible authorities: Jiangsu Provincial Department of Human Resources and Social Security, Jiangsu Provincial Department of Finance, Jiangsu Provincial Tax Service, and the people’s governments of all prefecture-level municipalities in Jiangsu)
13. Improving employment and social security services
Support will be given to recruitment of workers by enterprises indispensable to epidemic prevention and control, to public utilities’ operation and to people’s livelihood, manufacturers of epidemic prevention and control materials in particular, with the aim of ensuring unimpeded operation of online job-seeking service platforms, enhancing online services, collecting and releasing employment information through multiple channels, and processing applications for special working hours in a timely manner. During the epidemic prevention and control period, enterprises are allowed to postpone the registration and payment of their employees’ insurances. (Responsible authorities: Jiangsu Provincial Department of Human Resources and Social Security, and the people’s governments of all prefecture-level municipalities in Jiangsu)
14. Encouraging employment in small and medium-sized enterprises
For small and medium-sized enterprises that absorb laid-off and unemployed workers or migrant workers by signing labor contracts for more than one year and paying their social insurance premiums in accordance with relevant provisions, and for various kinds of human resources agencies that provide employment match-making services, one-time employment subsidies and employment service subsidies will be granted respectively if they meet the requirements. (Responsible authorities: Jiangsu Provincial Department of Human Resources and Social Security, Jiangsu Provincial Department of Finance, and the people’s governments of all prefecture-level municipalities in Jiangsu)
IV. Better coordination for service delivery
15. Guiding enterprises in resumption of work and production
Enterprises will be advised to formulate work and production resumption plans and emergency response plans, with main responsibilities for epidemic prevention and control defined and measures implemented to ensure that the prevention and control mechanism is in place, quarantine and inspection are carried out, equipment and materials are supplied, internal management is executed, and publicity and education are delivered for stable and orderly production and life. For eligible small and medium-sized enterprises willing to convert themselves to manufacturers of epidemic prevention and control materials, full support will be given to help coordinate and solve the problems in the process of production conversion with “one policy for one enterprise”. The provincial public service demonstration platform for small and medium-sized enterprises will be guided and encouraged to provide policy publicity, legal aid, financial assistance, technical guidance and other targeted services to enterprises that have resumed work and production through making calls, online counseling and remote services. (Responsible authorities: Jiangsu Provincial Department of Industry and Information Technology, Jiangsu Provincial Administration for Market Regulation, and the people’s governments of all prefecture-level municipalities in Jiangsu)
16. Assistance in restoring production and operation
Enterprises that meet the epidemic prevention requirements shall be approved to restore production at an early date with no extra requirements. Efforts will be made to help enterprises that have resumed production to coordinate the supply of raw materials, the rapid arrival of workers, the guarantee of logistics and transportation, and the preparation of epidemic prevention materials for workers, so as to effectively resolve the production and operation difficulties caused by epidemic prevention and control. Guidance will be given to epidemic-affected enterprises that have organized their workers to participate in vocational training during the downtime and recovery period with epidemic prevention precautions to grant training subsidies in accordance with relevant provisions. The government and state-owned enterprises are encouraged to give priority to small and medium-sized enterprises which have suffered losses amid the epidemic when purchasing products and services under the same conditions. Public legal services will be provided to give out risk-related information, and specialized services will be given to small and medium-sized enterprises that fail to fulfill contracts due to the epidemic. (Responsible authorities: Jiangsu Provincial Department of Industry and Information Technology, Jiangsu Provincial Department of Justice, Jiangsu Provincial Department of Finance, Jiangsu Provincial Department of Commerce, Jiangsu State-owned Assets Supervision and Administration Commission, and the people’s governments of all prefecture-level municipalities in Jiangsu)
17. Ensuring production of epidemic prevention and control supplies
Efforts will be made to safeguard the work of the small and medium-sized enterprises on the list of key enterprises for epidemic prevention and control. Enterprises designated by the central government and provincial government for the production of key supplies for epidemic prevention and control which conducted technological renovation and development of new products for the purpose of intensifying epidemic control efforts will receive a reward subsidy equivalent to 50% of their investment in equipment upgrading and product R&D provided by the provincial special fund for transformation and upgrading of industrial and information technology industries. The subsidy for each such enterprise will be no more than RMB 3 million. Local governments may also set aside corresponding funds as support. (Responsible authorities: Jiangsu Provincial Department of Industry and Information Technology, Jiangsu Provincial Department of Finance, and the people’s governments of all prefecture-level municipalities in Jiangsu)
18. Ensuring unimpeded transportation
Policy-based green channels will be open for vehicles transporting such supplies necessary to life as epidemic prevention and control materials and agricultural and sideline products as well as logistic vehicles of companies allowed to resume production. Special passes will be given to above-mentioned vehicles to ensure fast and efficient transportation with no delay or interception due to epidemic control reasons. Support will be offered to enterprises processing and storing agricultural products, to supermarkets, and to logistic companies as they build or improve cold-chain logistic facilities. The issue of inter-city, village-to-town, and inter-markets channel blockage will be addressed to ensure the supply of daily necessities. (Responsible authorities: Jiangsu Provincial Department of Transportation, Jiangsu Provincial Department of Public Security, Jiangsu Provincial Department of Industry and Information Technology, Jiangsu Provincial Department of Commerce, Jiangsu Provincial Department of Agricultural and Rural Affairs, and the people’s governments of all prefecture-level municipalities in Jiangsu)
19. Lowering R&D and innovation costs for SMEs
An additional 75% of SME’s actual spending on epidemic control-related R&D will be deducted as cost (in cost-profit calculation). Sci-tech innovation voucher will be promoted in Jiangsu and the area it covers will expand. Qualified SMEs will enjoy a subsidy up to 50% of their spending on testing from the provincial and municipal finance collectively. New type of R&D institutions with their names on the provincial list will be offered, by the provincial sci-tech funds, a bonus to the maximum of 20% (no more than RMB 10 million) of their non-fiscal fund-supported R&D expenses in the previous year. The provincial sci-tech resource platform will open free of charge to SMEs in Jiangsu from 2020. We will speed up with the establishment of provincial intellectual property big data platform, the breakdown sheet of NCP prevention and control technologies, and the patent database for related technologies on mask preparation and materials, virus detection, vaccines, and therapeutic drugs, all of which will open to the public for free. (Responsible authorities: Jiangsu Provincial Department of Science and Technology, Jiangsu Provincial Department of Finance, Jiangsu Provincial Administration for Market Regulation, Jiangsu Provincial Intellectual Property Office, and the people’s governments of all prefecture-level municipalities in Jiangsu)
20. Facilitating sci-tech companies with good services
We will streamline high-tech enterprise certification with the assistance of the internet in work arrangement, promoting “paperless” registration of technology contract. During the period of epidemic control, all work shall be down online and the submission of required materials in paper form can be deferred until the end of the epidemic. Moreover, we aim to provide highly efficient services to sci-tech SMEs by doing all the evaluation online. (Responsible authorities: Jiangsu Provincial Department of Science and Technology, Jiangsu Provincial Department of Finance, Jiangsu Provincial Tax Service, and the people’s governments of all prefecture-level municipalities in Jiangsu)
21. Promoting online approval of investment projects
Local authorities in charge of administrative approval should make better use of the provincial online platform for investment project approval and regulation by taking and processing application online to save enterprises the trouble as much as possible of visiting brick-and-mortar premises for information or going through procedures. Required paper form materials can be delivered by mail. And relevant procedures must be completed on time. Local administrative approval authorities shall post or update hotline numbers on Jiangsu government service website, online platforms, web portals and WeChat public account, take questions from and offer guidance to enterprises to ensure that project approval is not interrupted or slowed down by the epidemic outbreak. (Responsible authorities: Jiangsu Provincial Development and Reform Commission, Jiangsu Provincial Government Affairs Office, and the people’s governments of all prefecture-level municipalities in Jiangsu)
22. Promoting inclusive and prudential regulation
In case of minor violations of laws and regulations, enterprises will be urged to make corrections but exempted from administrative punishment. Qualification valid period will be extended with due consideration and companies that fail to renew upon expiry due to the outbreak are allowed to complete the procedure after the epidemic ends. Credit repair mechanism will be improved. We will help companies who fail to complete production orders or deliver on time due to force majeure to minimize the risk of credit loss and reestablish credit through a convenient credit repair process. (Responsible authorities: Jiangsu Provincial Administration for Market Regulation, Jiangsu Provincial Development and Reform Commission, Jiangsu Provincial Federation of Industry and Commerce, and the people’s governments of all prefecture-level municipalities in Jiangsu)
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