Strengthen Assistance to Enterprises

1. Assigning epidemic prevention liaisons to key enterprises; and,

2. Providing guidance to enterprises in epidemic prevention and control.

Strengthen Financial Support

3. Financial institutions should draw down or cut loans carefully;

4. The Chinese central bank delivered special relending funds of five billion CNY to support the Bank of Changsha and other local corporations to offer preferential loans to key producers of protective materials;

5. Financial institutions are encouraged to offer preferential relending funds to key epidemic prevention and control enterprises;

6. SMEs suffering from losses caused by the epidemic could be incorporated into credit loan risk compensation. The compensation ratio  rises from 50% to 60%, and the largest compensation amount for a single loan increases from one million to 1.1 million CNY;

7. Enterprises are encouraged to issue corporate credit bond to raise funds for resuming normal production.

8. Financial institutions provide online loan approval and fund settlement services;

9. Listed companies which are unable to disclose their earnings preannouncement or business performance on schedule due to the epidemic can apply to stock exchange for deferment.

Relieve Pressures of Social Insurance Payment

10. Implementing state policies on exempting or reducing employer contributions to the basic pension, unemployment, and employment injury insurance schemes by stages: between February and June, medium-sized, small and micro enterprises could be exempt from contributions to the above three insurance schemes; between February and April, large enterprises could be allowed a 50% reduction; and, before the end of June, enterprises could apply for postponing payment of housing provident fund.

11. During the epidemic prevention and control period, companies that meet certain requirements having no or few layoffs can get a 50% (60% for the areas in deep poverty) return of their contributions to unemployment insurance scheme last year; and,

12. Enterprises included in the pilot pension insurance premium rates continue to enjoy existing preferential policies.

Increase Tax Support

13. Green channels shall be set up for taxpayers producing and selling anti-epidemic materials.

14. Medical drugs, vegetables, and fresh meat and egg products exempted from value-added taxes (VAT).

15. Small and medium-sized enterprises affected by the epidemic that are unable to file tax returns or pay taxes within the prescribed time limit are allowed to file tax returns or pay taxes within an extended period.

16. Starting January 1, 2020, cash and materials donated by enterprises to tackle the epidemic outbreak are allowed to be deducted in full when calculating the taxable income amount of corporate income tax. Manufacturers of key anti-epidemic materials will enjoy one-time tax deduction for equipment purchase to expand production capacity in accordance with the relevant provisions.

Increase Fiscal Subsidies

17. The province will use its infrastructure investment budget to give appropriate discounts to the working capital loans of enterprises that did not stop production during the Spring Festival holiday, or have resumed production by the end of February.

18. During the epidemic prevention and control period, the Hunan Department of Finance shall give special subsidies to the key production and distribution enterprises of epidemic prevention materials in the province whose costs increase due to the price rise.

19. Rent compensation, exemption and half deduction policies shall be given to eligible enterprises. Appropriate financial subsidies shall be granted to eligible travel agencies and tourism enterprises.

Support Steady Employment

20. For enterprises that resume production by the end of February, the industrial parks where these enterprises are located, shall be responsible for providing commuter vehicles during the epidemic prevention and control period. For employees who return to the factory from outside the province, the province shall coordinate and provide transportation services.

21. Support innovation and entrepreneurship to drive construction of employment demonstration bases, entrepreneurship incubation bases, and migrant workers returning to their hometown’s entrepreneurial parks, and arrange 100 million yuan from provincial employment funds to give county-level financial subsidies; and,

22. Launch online “Spring Breeze” recruitment service. Strengthening matchmaking with fraternal provinces and establishing a two-way flow of labor cooperation across regions.

Support Stabilizing Foreign Trade and Investment

23. Further accelerate customs clearance reform rates and export tax rebates progress, increase support for trade financing, and give full play to the role of export credit insurance;

24. Speed up the agricultural products and food accessing process, reduce quarantine approval duration, and report and approve applications that meet requirements;

25. Simplify the import purchase, payment, and remittance procedures and materials for imported or donated epidemic prevention and control materials;

Make Every Effort to Ensure Smooth Logistics and Transportation

26. Open up a logistics “green channel” for emergency material supplies such as epidemic prevention materials and the related raw and auxiliary materials, and production equipment. For vehicles involved in dangerous chemicals transportation, temporary passes will be issued if eligible;

27. Accelerate handling traffic obstructions such as interception and blocking of roads without authorization. From 00:00 on February 17 to the end of epidemic prevention and control, toll roads are free of charge;

Keep Optimizing Production and Operation Environment 

28. The administrative law enforcement departments such as public security, procuratorate, court, and justice authorities shall eliminate multiple and duplicate enforcement, and the tax department shall minimize the frequency of inspections;

29. Relying on the online approval and supervision platform for national investment projects, to strengthen remote approval services for investment project construction; and,

Fulfill Work Responsibilities 

30. Provincial departments at all levels must take up the political responsibility for epidemic prevention and control, and ensure that all tasks are implemented as soon as possible.

This article is from Hunan Provincial Government www.enghunan.gov.cn. 

Translators: Pang Yuehui; Yu Jiangjiang; Kuang Zhenzhen

Chinese source: hunan.gov.cn