What kind of support and preferential policies will the government provide for the resumption of work and business?

1. What kind of rent reductions and exemptions are available to enterprises in Shanghai?

According to "Shanghai's Several Policies and Measures to Fight the Epidemic and Help Enterprises Promote Development", small and medium-sized enterprises and individual entrepreneurs renting state-owned housing to engage in production and business activities will be exempted from paying three months' rent in 2022, and if they are classified as being located in the streets and towns in the areas with a high risk of the epidemic in 2022 or if the implementation of the requirements of the epidemic prevention has seriously affected their business activities, the total annual amount of rent will be exempted from paying six months' rent. If there is an indirect tenant situation, the subtenant does not enjoy this reduction policy, and the relevant state-owned enterprises and institutions should ensure that the rent-free measures benefit the final tenant.

At the same time, large commercial buildings, shopping malls, parks and other types of market operators are encouraged to negotiate on the basis of appropriate rent reductions and exemptions for tenants of the entity's operations, the government's various supportive policies give priority to support the initiative of rent reductions and exemptions of the market entity. Therefore, if the landlord is a state-owned enterprises and institutions, is free of rent and benefit the final tenant, if it is a non-state-owned enterprises, it is recommended to actively negotiate with the landlord for part of the rent reduction.

2. Which enterprises can enjoy the social security support policy?

The current national support policy is the social security deferral, the scope has been expanded from catering, retail, tourism, civil aviation, road and waterway railroad transportation and other special hardship industries to all the difficulties affected by the epidemic of small and medium-sized micro-enterprises, individual business households.

3. What tax incentives are available to enterprises?

On March 24, the Ministry of Finance and the State Administration of Taxation (SAT) issued the Announcement on the Exemption of Value-added Tax (VAT) for Small-Scale VATpayers, making it clear that from April 1 to December 31 this year, VAT small-scale taxpayers applying a 3% levy rate on their taxable sales income are exempted from VAT; and prepayment of VAT for prepayment of VAT items applying a 3% pre-payment rate will be suspended.

According to the "Several Policy Measures of Shanghai Municipality to Fight the Epidemic and Help Enterprises and Promote Development with All Out Efforts", the implementation of the policy of implementing large-scale tax refund for the VAT tax credit is prioritized for small and micro-enterprises; for small and micro-enterprises as well as individual industrial and commercial enterprises paying tax according to the general taxing method, the stock of tax credit is fully refunded at one time before the end of June 2022, and the incremental tax credit is refunded in full on a monthly basis from April 1, 2022 onwards. The full amount will be refunded on a monthly basis from April 1, 2022 onwards.

In addition, focusing on micro, small and medium-sized enterprises and individual business households, it will increase its efforts to implement a number of tax incentives, exempt small-scale taxpayers from value-added tax on a phased basis, further halve the enterprise income tax on the portion of the annual taxable income of small micro-profit enterprises that exceeds 1 million yuan but does not exceed 3 million yuan, increase the proportion of additional deduction for research and development expenses of science and technology-based small and medium-sized enterprises to 100%, and increase the proportion of pre-tax deduction for equipment and appliances of small and medium-sized enterprises. The pre-tax deduction of equipment and apparatus for SMEs will be increased. Extend the scope of reduction and exemption policies of "six taxes and two fees", such as resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp duty (excluding stamp duty on securities transactions), cultivated land occupation tax, and surcharge on education and local education, etc., to small and micro-beneficial enterprises and individual industrial and commercial households, and implement the policies in accordance with the ceiling within the range of the state's prescribed reductions. The implementation of the policy.

4. What kind of enterprise assistance policies can enterprises enjoy?

Several policies and measures of Shanghai to fight the epidemic and help enterprises to promote the development of the city are clear, continue to implement the 1% unemployment insurance contribution rate policy, continue to phase down 20% of the industrial injury insurance industry benchmark rate; implement training subsidies, entrepreneurship support, trade union funds return and other policies to stabilize and expand the workforce; and support and regulate the development of new forms of employment. Among them, in the stable job expansion, encourage enterprises to carry out vocational skills training for employees, the various types of enterprises affected by the epidemic, social organizations for the unit's actual employees to carry out various types of online vocational training related to the unit's main business, in accordance with the provisions of the online vocational training subsidies. Encourage business incubation demonstration bases to reduce or waive the rent for incubated entrepreneurial enterprises; entrepreneurial organizations and individuals affected by the epidemic can apply to the bank that handles them.

Entrepreneurial guaranteed loan rollover repayment, in principle, no more than one year, and can continue to enjoy financial subsidized interest support. The full amount of funds contributed by the labor unions of small and micro-enterprises will be fully reimbursed.

An executive meeting of the State Council held on April 27 proposed supporting localities to implement phased preferential treatment for electricity consumption in special hardship industries, and continuing to give preferential treatment to broadband and leased-line tariffs for small and medium-sized enterprises, so as to reduce costs for online employment and entrepreneurship, among other things.

5, what are the financial policies to support the industry sectors facing greater difficulties due to the impact of the epidemic?

We will increase financial support for industries that face greater difficulties due to the ongoing impact of the epidemic, comprehensively utilize seamless renewal of loans, repayment loans, credit loans, supply chain finance, and other service modes, and implement facilitation measures such as online processing and application-free enjoyment to effectively alleviate the financing difficulties of the relevant market players.

6. What are the financial support policies for micro and private enterprises?

Guiding financial institutions to increase the investment of universal micro-credit, prioritizing support for difficult industries, especially micro-enterprises and private enterprises. Actively use the state's policy of providing incentive funds for 1% of the incremental balance of inclusive small and micro loans to local legal entity banks, and support qualified local legal entity banks to apply to the People's Bank of China for preferential funds for inclusive small and micro loan refinancing. Further increase the number of first loans, credit loans, and non-repayable renewable loans for small and micro enterprises, and do not blindly shy away from, withdraw, cut off, or suppress loans to enterprises in difficulty affected by the epidemic. Difficult industries affected by the epidemic will be included in the catalog of key industries, and incentives will be given to banks in Shanghai for granting loans to inclusive small and micro-enterprises. It will further play the role of platforms such as "Bank-Tax Interaction" and "Credit Easy" to facilitate the use of public*** credit information by banks and other financial institutions. It will improve the credit repair mechanism and actively assist enterprises and individuals affected by the epidemic to carry out credit repair work.

7. What are the financial relief initiatives of local financial organizations?

Encouragement and support for microfinance companies with better operation and management, stronger risk control capability, and good supervisory evaluation to integrate funds through bond issuance, shareholder borrowing, interbank lending, and issuance of asset securitization products based on assets of loans issued by the Company, etc., in order to serve the real economy.

In the case of inclusive microfinance loans that expire between March 1 and September 30, 2022, the debt repayment date can be extended to December 31, 2022 as long as appropriate, if the enterprise maintains an effective guarantee arrangement or provides an alternative arrangement, and promises to maintain the basic stability of jobs, and the penalty and interest are waived.

Banking financial institutions are encouraged and supported to strengthen cooperation with local financial organizations, provide financing support to local financial organizations operating in compliance with the law, increase the credit limits for microfinance companies, financial leasing, commercial factoring and other institutions, and reduce financing costs. Priority service channels have been opened for anti-epidemic-related enterprises to list and finance in regional equity markets, and the issuance and transfer procedures of "anti-epidemic bonds" and other special convertible bond products have been simplified.

8, refinancing policy will focus on supporting which industry sectors?

Actively using coal clean and efficient use of special refinancing and carbon emission reduction support tools to support the upgrading of eligible coal power units; actively using the national transportation and logistics sector of 100 billion yuan of refinancing to increase the financial support for the smooth flow of the logistics and shipping cycle; and actively using the national 200 billion yuan of scientific and technological innovation refinancing, to increase the support for the development of science and technology and technological innovation of enterprises; Liberalize the restriction on the number of business entities supported by each 100 million yuan of agricultural refinancing, so that agricultural refinancing funds can benefit more business entities involved in agriculture.

9, banking institutions for new loans have what policy support?

Financial institutions should endeavor to tap new loan customers, increase the ratio of first-time lenders, and do what they can to lend, and should be loaned as much as possible. Continuously increase new financing services for medical service units, anti-epidemic material production enterprises, urban operation and protection units, small and micro enterprises engaged in the operation of staple food and necessities of life and self-employed households.

10. What policies are in place to strengthen financial guarantee support?

Promoting governmental financial guarantee institutions to provide financing credit support for eligible small and medium-sized micro-enterprises and individually owned businesses, to help enterprises affected by the epidemic to renew their insurance renewals and loans, and to increase the support for entrepreneurial guarantee loans to individuals and enterprises affected by the epidemic.

The key enterprises of epidemic prevention and small and medium-sized micro-enterprises affected by the epidemic in 2022 to apply for new bank loans, the city financing guarantee center financing guarantee fee rate of 0.5%, the re-guarantee fee rate charged in half, and entrepreneurial guaranteed loans continue to be exempted from the guarantee fee.

11, financial institutions to reduce fees and concessions, reduce the overall cost of enterprise financing what policy support?

Playing the role of loan market quotation rate (LPR) reform to promote the downward trend of financing costs for small and micro-enterprises. The use of re-lending, re-discounting policy tools and various interest rate subsidy policies, to the real economy reasonable concessions.

Compressing the financing chain and intermediate links, canceling some charges and unreasonable conditions in the credit link, and reducing the burden for enterprises in the credit enhancement link through a variety of ways. Reductions and exemptions will be implemented for small and micro-enterprises and people seriously affected by the epidemic in terms of handling fees for account management, payment and settlement, and financing guarantees.

Establishing and improving the cooperation model between policy banks and small and medium-sized commercial banks in transferring loans, increasing the scale of investment, reducing the cost of financing, and focusing on supporting the manufacturing industry, the export-oriented economy and the "three rural" areas to resume work and production. Explore the adoption of interest and fee concessions, insurance concessions and other ways to increase the epidemic prevention of key enterprises, people in difficulty to help.

Promoting financial institutions to reduce bank account service charges, RMB transfer and remittance fees, bank card swipe fees, e-banking service charges, and payment account service fees.

12. What fee reductions and concessions do local financial organizations have for SMEs?

Local financial organizations to appropriately reduce the anti-epidemic-related small and medium-sized microenterprises and industries affected by the epidemic, such as loan interest rates, guarantee rates, pawn comprehensive rates and other financing costs. For the epidemic prevention key enterprises and small and medium-sized micro-enterprises affected by the epidemic in 2022 new applications for bank loans, the city financing guarantee center financing guarantee fee rate of 0.5%, re-guarantee fee rate charged in half, the entrepreneurial guarantee loans continue to be exempted from the guarantee fee. For enterprises that play an outstanding role in anti-epidemic work, the corresponding reduction or exemption of their listing, financing and debt issuance audit fees in regional equity markets, and the corresponding reduction or exemption of their prequalification service fees for intermediaries that provide listing, financing and debt issuance services for anti-epidemic enterprises.

13, what are the financial relief support measures for catering and other life service industries?

Innovating financing methods and encouraging financial institutions to utilize accounts receivable, orders and other information to issue credit loans to catering enterprises.

14. What are the financial relief measures for the retail industry?

Enterprises on the support list for emergency supply, key cultivation, and convenient living area construction, etc., encourage financial institutions to increase credit support and reduce lending rates, and appropriately subsidize loans. Support for wholesale markets, supermarkets, stores, e-commerce platforms, urban living materials distribution, such as the normal operation of the security of supply enterprises, focus on smooth inter-provincial and intra-city logistics and transportation green channel, increase the main food source organization. Promote financial institutions and retail industry authorities to enjoy information ****, the use of micro, small and medium-sized enterprises and individual businessmen's transaction flow, business premises leasing and related credit information and other data to encourage the issuance of more credit loans.

15. What are the financial relief and support measures for the tourism industry?

For eligible travel agencies, the temporary refund of the quality of tourism services deposit ratio increased from 80% to 90%, citywide insurance instead of deposit pilot. Encourage governmental financial guarantee institutions to provide financing credit support for eligible tourism business entities, and help enterprises affected by the epidemic to renew their insurance and loans. Increase the support of tourism special funds, eligible travel agencies, A-class tourist attractions and other tourism enterprises to give loan subsidy support.

16, what financial relief support measures for the transportation industry?

Implementation of the State to continue to subsidize eligible air routes through the Civil Aviation Development Fund, and provide interest subsidy support for civil aviation infrastructure loans. A green channel has been established for airlines and airports seriously affected by the epidemic to issue debt financing instruments. Provide subsidized interest rate support for civil aviation infrastructure loans. Establishing a green channel for airlines and civil aviation airports seriously affected by the epidemic to issue debt financing instruments.

17. What financial relief measures are available for the freight logistics industry?

Increase credit support and insurance coverage to transportation and logistics enterprises and truck drivers and other individuals. Encourage banks and insurance institutions to optimize the approval process in accordance with market-oriented principles, and to provide flexible and convenient financial services to transport enterprises that undertake heavy epidemic prevention and control and emergency transport tasks. Guide insurance companies to actively develop cargo transportation insurance, road cargo transportation carrier liability insurance and other products to provide risk protection for the logistics industry and related people. Strengthen the financial support for the resumption of the shipping and logistics industry to ensure the smooth flow of the international supply chain logistics channel.