Songjiang Introduced New Policies on Supporting Enterprises

Songjiang Introduced New Policies on Supporting Enterprises


The following policies and measures are introduced to fully implement the important instructions of General Secretary of CPC Central Committee, Xi Jinping, about winning the battle against the outbreak caused by coronavirus disease (COVID-19), to carry out arrangements made by the CPC Central Committee, the State Council,the CPC Shanghai Municipal Committee and the Shanghai Municipal People’s Government, and to follow the Policies and Measures Introduced by Shanghai Municipal People’s Government to Fully Contain the Outbreak and Support the Sound Development of Enterprises. These policies and measures will ensure that enterprisesplay an important role in containing the outbreak while helping enterprises overcome difficulties together, containing the outbreak comprehensively and promoting sound development of enterprises included in the G60 S&T Innovation Valley. The details are as follows.

Measures & Policies Introduced by Songjiang District to Contain the Outbreak and Support Enterprises Included in the G60 S&T Innovation Valley of Yangtze River Delta
Fully Encourage Enterprises to Contain the Outbreak

1  Organize Enterprises to Resume Operations in Order

  • Based on epidemic situation and requirements of economic and social development, organize enterprises to resume operations in order. Coordinate thepurchasing of protective articles, such as masks, disinfectants and thermometers. Subsidize enterprises accordingly which either are involved in public places, labor-intensive, or bear heavy burdens on procurement.
  • Further ensure the safe environment of enterprises after workers resume work. Based on the risk evaluation, and management measures and preparations that enterprises have carried out to control the epidemic, encourage enterprises to arrange workers in regions with fewer COVID-19 cases to resume work first.
  • Carry out online employment through WeChat, Internet or video chat. Ensure communication channels among enterprises are unblocked and help enterprises to tackle recruitment difficulties.
  • Coordinate enterprises according to their urgent needs of purchasing raw materials and transportation.
  • Stabilize the supply and price level of daily necessities, such as staple and non-staple food.
2 Guarantee the Capacity of Key Enterprises

  • Support enterprises which are conducive to the epidemic control by providingrelated medical supplies or necessities to resume operation timely. Coordinate their needs of financing, transport and others.
  • Enterprises requisitioned by the government under emergency will be granted subsidies of technical transformation. If the technical transformation projects launched by enterprises to produce supplies fighting epidemic under emergencyare confirmed, the municipal government will subsidize the projects for 50% to 80% of their total investment. In addition, enterprises producing masks and other goods in short supply under emergency will be granted another 10% of financial subsidies.
  • Enterprises requisitioned to produce designated supplies to fight epidemic can be fully financially supported.

According to the list of urgently needed personal protective equipment(PPE),encourage related enterprises to resume or expand production, and turn themselves from civil to medical enterprises, which will be subsidized. Departments of approval and examination concerning related qualifications shall use the system of notification and promise to accelerate qualification approval.

3 Key Enterprises Will Be Granted Special Awards and Subsidies

Key enterprises making great contribution to contain the epidemic, including those guaranteeing emergency supplies, safe operation in the city, peoples’ daily necessities and other aspects concerning people’s livelihood and national economy, will be honored accordingly and awarded 50,000 to 500,000 RMB.

4 Key Enterprises Will Be Granted Talent Subsidies

  • Enterprises that make great contribution to contain the spread of COVID-19 will enjoy the higher level of the “1+10” Talent Policy and be granted talent apartments and funds first; Talents making great contribution to fight epidemic can register their household in Shanghai first.
  • As for enterprises that make great contribution to contain the spread of COVID-19, enterprises under key support of districts, and small and medium-sized enterprises (SMEs) that are largely affected by the epidemic,
  • 15 million RMB will be added to the Special Fund of Salary Support for Talents Assisting Enterprises and Fighting COVID-19
  • 5,000 places are added to the quota of rental subsidies
  • Talents returning to work will be given one-off subsidies, specifically 900 RMB/person
5 Ensure Fast Customs Clearance for Goods to Combat the Outbreak

  • Meet the requirements of prevention tasks to fight pneumonia caused by COVID-19. All-out efforts are made to guarantee the fast customs clearance for goods to combat the outbreak, achieving fast-track clearance.
  • Implement the policies about duty-free importation range specified in Interim Measures for the Exemption of Import Duties on Charitable Donated Materials.Imported materials donated to control the outbreak will be exempted from import duties, import value-added tax, and excise. The materials imported by health departments to be directly used to control the outbreak will be exempted from import duties.
Assist Enterprises and Secure Employment

6 Refund Unemployment Insurance Partially

  • Refund 50% of the total unemployment insurance premiums paid in the previous year to eligible enterprises that do not lay off employees or minimize the layoffsin 2020.
  • Enterprises meeting the criteria of secure employment policies in Punan District will be granted subsidies in social insurance no more than 600,000 RMB per yearaccording to their employment.
7 Delay the Adjustment Period of Social Insurance Contribution Base

From 2020, adjust the payment period of annual social insurance for employees (including annual employee medical insurance) to July 1 of the year to June 30 of the next year, which means the date is postponed for 3 months (annual social insurance contribution for employees in 2019 shall be postponed to July 1, 2020).

8 Extend Social Insurance Payment Period

  • Insured enterprises which failed to complete the registration and payment of social insurance on time due to the coronavirus epidemic are allowed tocomplete relevant social insurance repayment procedures within 3 months after the epidemic situation is resolved.
  • Overdue payments of social insurance premiums will not incur late fees or affect the rights and interests of insured individuals if the contributor has reported to the municipal social insurance agency in advance.
9 More Training Subsidies

  • All businesses in the district that are affected by the epidemic and organize employees’ participation in various online vocational training, during the suspension of business operations, can enjoy a 100% subsidy at maximum for their actual training costs as these trainings covered in additional special subsidies for regional education.
10 Lower Medical Insurance Premium Rate Properly

According to the balance of medical fund, lower employees’ medical insurance premium rate by 0.5% after ensuring that insured individuals are treated of the same level and the medical insurance system is under smooth operation.

11 Implement Flexible Operation Policy

  • Enterprises having difficulties to carry out normal operations due to the outbreak can stabilize their operation by wage adjustment, job and day-off rotation, flexible working hours, annual holiday exchanges and others. Specific methods can be confirmed after enterprise have negotiated with employees.
12 Expand Credit Scale of Small and Micro Enterprises

  • Coordinate support from banks and related organizations to small and micro enterprises. Ensure that the credit scale of small and micro enterprises in 2020 is not smaller than that of the corresponding period of 2019.
  • As for industries that have been hit hard by the outbreak such as wholesale, retail, accommodation, catering, logistics, transportation and tourism, and enterprises that show potential but suffer losses from the outbreak, especially small and micro enterprises, banks shall not call in loans in advance, cut off the credit, or postpone the date to grant loans blindly.
  • As for enterprises largely affected by the outbreak and unable to pay the maturing loans, eligible ones will have the repayment periods extended or loans renewed.
13 Reduce Financing Cost for Enterprises

  • Coordinate banks and related organizations to offer loans at a preferential interest rate to key enterprises that produce, transport and sell key medical supplies and daily necessities to fight the outbreak, including small and micro enterprises.
  • Enterprises that meet the criteria of the re-lending policy of Bank of China will begranted 50% of discount changes by the Ministry of Finance and the lending rate for enterprises will be ensured to be lower than 1.6%.
  • For industries and SMEs greatly affected by the outbreak, low-cost loans and fees exemptions will be available. The loan interest will be 0.25% lower than loan prime rate (LPR) of the corresponding period.
  • Key enterprises in the district that are greatly affected by the outbreak and have loans effective after January 1, 2020 will be granted proper discount changes with the term of discount no longer than 1 year based on the discount policy of the central government.

Borrowers granted personal business loan and infected with COVID-19 can apply for extension with the extension period no longer than 1 year in principle, and they will be granted proper discount changes by the Ministry of Finance.

14 Improve Policy-oriented Financing Guarantee Service

  • As for key enterprises producing materials to battle the outbreak and SMEs greatly affected by the epidemic, financing guarantee fees incurred by SMEs which just applied for loans will be fully subsidized.
  •  Encourage financing organizations to be more tolerant about non-performing loans. If the bad loans have resulted in losses, the government will raise its risk compensation, namely 5% to banks.

Governmental financing guarantee organizations which provide financing guarantee services for SMEs unable to make repayments now shall fulfill compensational duties timely and extend the limitation period of recourse claim according to the outbreak situation. If the cases are eligible for cancellation after verification, compensational losses are cancelled as required.

15 Provide Insurance Discount

  • Coordinate insurance organizations to offer safety production liability insurance, environmental pollution liability insurance and group life insurance for enterprises greatly affected by the outbreak and extend the scope of liability properly.
  • Insured enterprises affected by the outbreak shall be compensated. Green compensation passages shall be opened to ensure fast and right compensation.

Strengthen Support to Enterprises Facing Difficulties

16 Implement Tax Incentives

  • Implement national and municipal policies of tax incentives.
  • The income made by taxpayers from transporting key materials to battle the outbreak, providing public transportation and life services, and delivering and picking up packages of daily necessities is exempted from value-added tax.
  • During the outbreak, if the estate or land of enterprises is requisitioned by the government and enterprises have difficulty paying property tax or urban land use tax, they can apply to reduce or remit corresponding taxes.
  • As for the losses incurred by enterprises in 2020 in industries facing difficultiesdue to the outbreak, the loss carryover period will be extended from 5 years to 8 years.
  • Encourage the society to donate money and materials to fight the epidemic, which can be deducted totally from the individual taxable income. Related donated materials are exempted from value added tax, excise, and surcharges.
  • The subsidies and awards granted to medical workers and related people fighting the outbreak according to the criteria specified by the government, and protective articles given to individuals by organizations can be exempted from individual income tax.

During the outbreak, individual businesses which pay fixed amounts of taxes at fixed dates are exempted from fixed tax in accordance with the law.

17 Postpone the Declaration of Tax Payment

  • During the outbreak, if the taxpayer is unable to declare tax paymentdue to COVID-19, he/she can apply for a further extension in accordance with the law.
  • Individuals unable to pay the tax at the fixed date due to the outbreakand eligible for postponed declaration of tax payment can be givena longer term to pay the tax in accordance with the law while the term shall beno longer than 3 months.

The taxpayer who are unable to declare tax payment and pay the tax due to the outbreak can be exemptedfrom corresponding surcharges for overdue tax payment and tax affairs administrative penalty if the case is approved by tax authorities.

18  Enterprise Rent Reduction and Exemption

  • As for enterprises that rent state-owned and collectively-owned assetsfor business purposes and are seriously affected by the outbreak, two to three-month rent will be exempt or reduced.
  • Variety of policies will be first introduced to support industrial parks, commercial buildings, complexes, entrepreneurship bases, incubators of high-tech enterprises and maker space which offer rentexemption for small and medium tenants during the outbreak.
  • Municipal-level and district-level entrepreneurship demonstration bases that offer rent exemption for enterprises affected by the outbreak will be granted subsidies amounting to 40% of the total exempt rent. The subsidy to bases will not surpass 300,000 RMB at maximum.

19 Stabilize Development of Service Industry

  • Grant special subsidies for stable development of service industry with a range  between 50,000 to 1 million RMB to enterprises involved in commercial, tourism, hotel, catering, cinemas, exhibitions, educational trainings, sports, culture and other industries based on their industries, scales, losses and tax contributions last year.
  • As regulated by national policies, since February 5, 2020, travel agencies with standardized operation and sound reputation will be refund 80% of their quality guarantee deposit and should repay it before February 5,2022.
  • Payers of construction fee for cultural undertakings in the life service industry will be given financial subsidies according to their losses due to the outbreak and real payments.

20 Further Support Industries

  • Accelerate the approval process of projects supporting the key enterprises that greatly contribute to the regional economy and SMEs that are severely affected by the outbreak.
  • Ensure more sides are benefitted by policies. Checks from project or enterprises that meet industrial requirements and policies shall be first cashed in the quarter to ease financial pressure of enterprises.
  • Further support high-tech SMEs by innovation vouchers. The upper limit of innovation vouchers accepted in 2020 will be raised from 300,000 to 500,000 RMB.

Further Improve Business Environment

21 Step up Efforts to Attract Investment

  • Introduce more strategic emerging industries such as biomedicine, and further develop high-end service industries including health service.
  • Support physical stores to integrate offline and online stores through their interactions, develop experience consumption and expand the scale ofe-commerce.
  • Introduce supportive polices that benefit key newly-settled enterprises more in industries, science and technologies, talents and others.


22 Accelerate Implementation of Key Projects

  • Promote implementation of key projects to ensure sufficient projects are in reserve while striving to contain the outbreak.
  • Construction fund for government investment projects should be appropriated timely.
  • Speed up the start and operation of launched industrial projects, and support technical transformation of enterprises.

23 Actively Deepen the Cooperation for Industrial Integration

  • Support enterprises in 9 cities of G60 S&T Innovation Valley of Yangtze River Delta, and seek cooperation in production and marketing supply chain and technical research and development to fight the epidemic and deepen the industrial integration of the Yangtze River Delta.
  • G60 Joint Conference Office coordinated municipal governments of 9 cities to introduce supportive policies.

24 Improve Public Law Service

  • In terms of contract and industrial disputes due to the outbreak, enterprises will be guided by the government through its purchased law service to better settle the dispute with legal aid.

25 Help Enterprises Repair Credit

  • On the basis of voluntary reporting of credits and promises by enterprises, and implementation of classification and supervisions system ofenterprise credits, enterprises that actively correct behaviors breaking their promises, remove their negative influence, and are eligible for repair will have their credits repaired according to Management of Repairing Public Credit Records in Shanghai.

26 Further Improve Administrative Service

  • Deepen the reform of examination and approval to improve its efficiency.
  • Minimize the frequencies of examination over law enforcement on enterprises, except items concerning safety and people’s livelihood.
  • Public departments including water supply, power supply, gas supply and communications should strive to guarantee energy, resources and communications.
  • The implementation period of these policies and measures should be implemented as of the date of issuance, and the validity period should be extended for another three months after the end of the outbreak caused byCOVID-19 (if the implementation period of the policy and measures has beenspecified, it shall prevail).
  • If related supportive policies published by Shanghai and China overlap with the above ones, the principle of “prefer better policies but not repeated implementation” should be followed.

Songjiang Development and Reform Commission and related departments in Songjiang District will be responsible for explaining the policies.

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