Quanzhou issues measures to support SMEs during epidemic

Updated: Feb 11, 2020 L M S

Quanzhou municipal people’s government launched nine measures to support the operation of small and medium-sized enterprises on Feb 4.

1. Increase financial subsidies

Subsidies will be granted to enterprises that provide urgently needed resources for epidemic prevention and control, as well as business distribution companies that guarantee Quanzhou people's livelihoods.

Temporary collection and storage systems are established for surplus capacity in the process of epidemic prevention and control.

For insured companies that do not lay off workers or reduce layoffs, the government will return 50 percent of their actual paid unemployment insurance premiums in 2019 and enterprises are encouraged to carry out online vocational skills training for employees.

By giving full play to the role of financing guarantee institutions in enhancing credit services, the government has eliminated anti-guarantee requirements and is exempting policy financing guarantee fees during the outbreak.

Individual business guarantee loans affected by the epidemic can be extended for one year and continue to enjoy financial discount interest support.

2. Reduce the rental burden on SMEs

Leased state-owned assets for commercial use will be given a one-month rent reduction or exemption. Various state-owned enterprises, state-owned entrepreneurial parks, technological business incubators and entrepreneurial bases are encouraged to simplify examination and approval procedures and reduce rents for SMEs.

3. Reduction and exemption of taxes and fees for struggling enterprises

Enterprises that have suffered significant losses caused by the epidemic and that have difficulties in paying real estate tax and urban land use tax, may apply for exemptions.

Enterprises that are unable to file tax returns on time will be allowed to postpone tax returns according to the law. Those who meet the conditions for deferred tax payments will be allowed to postpone returns according to law.

4. Reduced corporate credit costs

Banking institutions are requested to reduce the financing costs of SMEs. By the end of 2020, the comprehensive financing costs of inclusive small and micro enterprises will be reduced by at least 0.5 percent.

5. Increased corporate credit

All banking institutions should increase their support for SMEs, providing medium and long-term loans for manufacturing enterprises during the epidemic, to ensure that the balance of loans to SMEs in 2020 is not lower than the same period in 2019.

Financial leasing companies should slow down or reduce related rents and interests when handling leasing business concerning medical equipment production.

6. Stabilized corporate loans

Banking institutions shall not blindly put pressure on enterprises that have been temporarily affected by the epidemic and shall grant a certain time for repayments.

7. Strengthen financial security services

Banking institutions are requested to select certain SMEs with prospects for development among existing customers and provide them with consulting services.

All insurance institutions should open up fast track channels for insurance claims, simplify procedures, provide timely and convenient services and make full compensations for customers.

8. Postpone issuing social insurance business

Enterprises affected by the epidemic can have another three months to handle social insurance services in issues such as pensions, unemployment and work injuries.

Those enterprises that are unable to pay social insurance fees due to the epidemic can postpone payment within three months after the epidemic, with no charge of any extra fees.

Overdue payments do not affect individual rights and interests records and employment payments.

9. Strengthen tax facilitation services

For taxpayers who produce and sell supplies for epidemic prevention and control, the government will not set a limit of the number of VAT invoices and the maximum invoicing values, providing enterprises with convenience in the use of invoices.

Preferential policies are granted to medical institutions and taxpayers involved in the production and sales of supplies. The process of tax refund approvals will be simplified.

This notice comes into effect from Feb 4 and remains valid until June 30, 2020.