Notice of Shanghai Municipal Peoples Government on Issuing Several Policies and Measures for Fully Controlling the Epidemic Situation and Supporting the Smooth and Healthy Development of Service Enterprises in Shanghai

SMPGD 【2020】No.3

Attention:All District Peoples Governments,Commissions, Offices and Bureausof the Municipal People’s Government:

　　We hereby issue to you Several Policies and Measures for Fully Controlling the Epidemic Situation and Supporting the Smooth and Healthy Development of Service Enterprises in Shanghai and request you to implementthem conscientiously.

Shanghai Municipal Peoples Government

                                                                                 February 7, 2020

　　

Several Policies and Measures for Fully Controlling the Epidemic Situation and Supporting the Smooth and Healthy Development of

Service Enterprises in Shanghai

　　In order to thoroughly carry out the spirit of General Secretary Xi Jinping’s important instructions on resolutely winning the war of epidemic prevention and control, and to fully implement the decision-making arrangements of the Party Central Committee and the State Council, the Municipal Party Committee and Municipal People’s Government have always put the safety and health of citizens first, and have taken epidemic prevention and control as the top priority and most important task at present. While making every effort to prevent and control the epidemic situation, we will coordinate all tasks of the reform, development, and stability, fully support enterprises to fight the epidemic situation, effectively reduce the burden on enterprises, increase financial and taxation financial support, and implement the policy of supporting enterprises to stabilize their job posts, put forth effort to optimize enterprise services, effectively do the six stability tasks  in the new situation, and work together to overcome difficulties. We hereby propose the following policies and measures

　　I. Fully supporting enterprises to fight the epidemic situation

1. Increase financial and taxation support for key enterprises in epidemic prevention. In accordance with national policies and regulations, key material production enterprises for epidemic prevention and control purchasing new equipment to expand their production capacity are allowed a one-time deduction before income tax and a full refund of the incremental value-added tax credit. VAT is exempted from the income from taxpayers transportation of key materials for epidemic prevention and control, and provision of public transportation services and living services, as well as the provision of courier delivery services for essential living materials for residents. Registration fees are waived for epidemic-resistant drugs and medical devices. Civil aviation companies are exempted from payable civil aviation development funds. The municipal finance will fully subsidize the enterprises policy-related losses caused by the governments emergency requisition for the production of designated key anti-epidemic materials due to production costs higher than the actual selling price. If the company has signed an export contract and the key export epidemic prevention materials have been converted to domestic sales by the government, the enterprise will not bear the increased tax burden. The companies and individuals who have the courage to assume social responsibility in the epidemic prevention and control campaign will be rewarded. (Responsible departments: Municipal Finance Bureau, Municipal Taxation Bureau, Municipal EconomyInformation TechnologyCommission, Municipal Commerce Commission, Municipal Human Resources and Social Security Bureau, Municipal Drug Administration)

　　2. Strengthen special financial credit support for key enterprises in epidemic prevention. Encourage development-oriented, policy-oriented, large state-owned commercial bank branches in Shanghai  and local corporate banks to actively use the People’s Bank’s special re-loan policy to provide preferential interest rate loans for key enterprises including small and micro enterprises of the production, transportation, and sales of key medical prevention and control supplies and necessities, and the public finance will give another half of the discount to ensure that corporate loan interest rates are less than 1.6%. Support financial institutions in Shanghai to use the funds forepidemic prevention and control-related fields raised throughissuing financial bonds and special-purpose bonds. (Responsible departments and units: Municipal Local Financial Supervision Bureau, Shanghai Peoples Bank Headquarters, Shanghai Banking and Insurance Regulatory Bureau, Municipal Development and Reform Commission, Municipal EconomyInformation TechnologyCommission, Municipal Commerce Commission, Municipal Finance Bureau)

　　3. Broaden direct financing channels for enterprises involved in epidemic prevention and control. Give full play to the role of financial markets in Shanghai, strengthen services for epidemic prevention and control related companies, support their issuance and listing, refinancing, mergers and acquisitions, restructuring, and issuance of bonds and asset-backed securities. Support and encourage scientific and technological innovation companies related to epidemic prevention and control to be listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. Encourage venture capital and equity investment institutions to guide social capital to invest in related medical equipment, vaccine drug development and production enterprises. (Responsible departments and units: Municipal Local Financial Supervision Bureau, Shanghai Peoples Bank Headquarters, Shanghai Securities Regulatory Bureau, Municipal Development and Reform Commission, Municipal EconomyInformation TechnologyCommission, Municipal Science and Technology Commission)

　　4. Strengthen the role of insurance protection. In response to the import demand of enterprises in urgent shortage of medical supplies and epidemic prevention and control supplies, China Credit Insurance Shanghai Branch is encouraged to actively carry out import advance payment insurance. For insurance claims customers who have been affected by the epidemic situation, the due compensation should be paid as quickly as possible. Insurance institutions are encouraged to provide free insurance against accidental injuries and term life insurance for medical personnel and epidemic prevention workers of this Municipalitywho support Hubei and participate in the epidemic prevention and control. Support to extend the insurance coverage of accident insurance and disease insurance to the Covid-19 pneumonia. (Responsible departments and units: Shanghai Banking Insurance Regulatory Bureau, Municipal Local Financial Supervision Bureau, Municipal Health Commission, Municipal Commerce Commission)

　　5. Support key epidemic prevention materials supply and marketing enterprises to expand capacityand increase imports. The government will provide subsidies for technical reconstruction for emergency requisitioned enterprises, and provide financial subsidies of 50% -80% of the total investment of the projects for the emergency technical reconstruction projects implemented by the requisitioned enterprises for the production of anti-epidemic materials. The maximum amount of full support can be given to the investment in the production capacity formed by the emergency expropriation enterprises for the production of specific anti-epidemic materials designated by the government. After the epidemic prevention and control work is over, if the enterprise has difficulty in continuing to sell out the surplus materials generated due to government requisition or government-designated production, it shall be resolved through government reserves and underwriting according to regulations; if there is still a surplus after the overall allocation of imported medical materials, the surplus will be brought into the municipal-level material reserve in accordance with the prescribed procedures; if it is really difficult for the enterprise to continue to sell out the imported civil preventive materials of the designated procurement type and quantity, they shall be brought in the municipal-level reserve commodity in accordance with the prescribed procedures. (Responsible departments: Municipal EconomyInformation Technology Commission, Municipal CommerceCommission, Municipal Grain and Material Reserve Bureau, Municipal Finance Bureau)

　　6. Grant preferential tax treatment for imported epidemic prevention materials. In accordance with national policies and regulations, imported materials donated for epidemic prevention and control are exempted from import duties and import value-added tax and consumption tax, and imported materials directly used by the municipal health department for epidemic prevention and control are exempted from duties. Tax exemptible collected shall be refunded. (Responsible departments, units: Municipal Finance Bureau, Municipal Taxation Bureau, Shanghai Customs, Municipal Civil Affairs Bureau, Municipal Health Commission, Municipal Commerce Commission)

　　7. Establish a green channel for rapid clearance of imported epidemic prevention materials. Open a special window and green channel for the import of anti-epidemic materials, and exercise 7 * 24-hour customs clearance at the main import ports. Make comprehensive use of the two-step declaration, advance declaration and other operating modes, priority inspection of the epidemic prevention materials that really need to be inspected, and follow-up inspection, rapid inspection and release. Duty-free imported anti-epidemic materials can be registered and released first, followed by relevant certificates. (Responsible departments, units: Shanghai Customs, Municipal Commerce Commission)

　　8. Support the development of innovative products for epidemic prevention and control. Organize the implementation of this Municipality’sspecial research and development and industrialization of new coronavirus diagnostic and therapeutic innovative varieties, and provide support through strategic emerging industry special funds, industrial transformation and upgrading special funds, and scientific and technological innovation program special funds to promote the rapid formation of effective capacity of innovative products for epidemic prevention and control and put into use. (Responsible departments: Municipal Development and Reform Commission, Municipal EconomyInformation Technology Commission, Municipal Science and Technology Commission, Municipal Health Commission, Municipal Drug Supervision Bureau, Municipal Finance Bureau)

II.Effectively reducing the burden on various enterprises

9. Reduce or exempt corporate housing rent. Small and medium-sized enterprises that rent operating real estate of state-owned enterprises in this Municipality(including various development zones and industrial parks, entrepreneurial bases, and sci-tech business incubators) to engage in production and operation activities will be exempted from February and March rents; rent reductions for indirectly leased enterprises shall be ensured to the place so that actually operating SMEs  are benefited. State-owned enterprises are encouraged to give as much profit to SMEs as possible through reduction, exemption, and delayed payment under negotiation. The impact of related revenue reductions is recognized in the assessment of business performance. Encourage large-scale commercial buildings, shopping malls, parks and other market operating entities to reduce rents for tenants operating as entities. Enterprises that take the initiative to reduce or exempt tenants from real estate or land rents have real difficulties in paying real estate tax and urban land use tax may apply for reduction or exemption of the corresponding real estate tax and urban land use tax. (Responsible departments, units: Municipal State-owned Assets Supervision and Administration Commission, Municipal CommerceCommission, Municipal EconomyInformation Technology Commission, Municipal Science and Technology Commission, Municipal Taxation Bureau)

　　10. Defer tax declaration. During the epidemic prevention and control period, due to the impact of the epidemic situation, taxpayers who have difficulty in reporting within the legal time limit may apply for further extension according to law. Those who have difficulty with tax payment on time due to the impact of the epidemic and meet the conditions for deferred tax payment shall be permitted according to law to make deferred tax payment, with a maximum period not exceeding 3 months. Taxpayers who fail to report and pay taxes due to the impact of the epidemic may be exempted from overdue fines and tax administrative penalties upon confirmation by the competent tax authority. (Responsible department: Municipal Taxation Bureau)

　　11. Give tax preferences to related enterprises and individuals. During the epidemic prevention and control period, the enterprise with its real estate or land expropriated by the government in an emergency has real difficulty with payment of the real estate tax and the urban land use tax may apply for reduction of or exemption from the corresponding taxes. According to national policies, the longest carry-over period for losses incurred by enterprises in difficult industries affected by the epidemic in 2020 is extended from 5 to 8 years. Social forces are encouraged to actively donate cash and materials for epidemic prevention and control, which can be fully deducted before income tax in accordance with regulations. Related donated goods are exempt from value-added tax, consumption tax and surcharges. The medical personnel and epidemic prevention workers participating in the epidemic prevention and control work are exempted from personal income tax on the subsidies and bonuses obtained in accordance with the standards set by the government, as well as on the epidemic protection supplies issued by the unit to individuals. (Responsible departments: Municipal Finance Bureau, Municipal Taxation Bureau)

　　12. Relieve the tax burden on individual industrial and commercial households on a regular basis according to regular quota. During the epidemic prevention and control period, individual industrial and commercial households that pay taxes on a regular basis according to regular quota are exempt from the tax quota payment according to law. (Responsible department: Municipal Taxation Bureau)

　　13. Temporarily refund the quality depositfor tourism services and subsidies for the construction of cultural undertakings. According to national policies, starting from February 5, 2020, 80% of the tourism service quality deposit will be temporarily refunded to travel agencies with good operating standards and good reputation, and will be returned before February 5, 2022. Payers of cultural undertaking construction fees in the living service industry will be given certain financial subsidies depending on the extent of their exposure to the epidemic and the actual payment. (Responsible departments: Municipal Culture and Tourism Bureau, Municipal Finance Bureau)

III. Increasing financial assistance to rescue enterprises

14. Provide funding support for enterprises through multiple channels. Encourage Pudong Development Bank, Shanghai Bank, and Shanghai Rural Commercial Bank to increase their credit allocation to industries and SMEs that fight the epidemic and are affected by the epidemic. The interest rate of relevant loans during the epidemic prevention and control period shall be reduced by at least 25 basis points with reference to the quoted market loan rate (LPR) during the same period. Other financial institutions in Shanghai are encouraged to follow suit. Establish a green channel for financial services to facilitate the enterprises related to production and supply of key anti-epidemic materials. Encourage financial institutions to increase their credit loan support to small and medium-sized enterprises through measures such as adjustment of performance assessment and raise of bad tolerance, by using platforms such as bank-tax interaction and Shanghai big data inclusive financial application. (Responsible departments and units: Shanghai Headquarters of Peoples Bank of China, Shanghai Banking and Insurance Regulatory Bureau, Municipal Local Financial SupervisionBureau, Municipal EconomyInformationTechnologyCommission, Municipal Commerce Commission, Municipal Big Data Center)

　　15. Increase support for companies with difficulties in working capital. Increase credit support for tourism, accommodation, food and beverage, wholesale and retail, transportation, logistics and storage, culture and entertainment, conventions and exhibitions and other industries affected badly by the epidemic, by changing repayment arrangements, extending repayment periods, and renewing loans without repayment, etc. to support enterprises with difficulties in repaying due loans, not suspending loans. Speed up the establishment of an online renewal loan mechanism. If the loan is overdue due to the impact of the epidemic, the relevant loan classification rating standards can be adjusted reasonably. (Responsible departments and units: Shanghai Banking and Insurance Regulatory Bureau, Municipal Local Financial Supervision Bureau, Municipal EconomyInformation Technology Commission, Municipal Commerce Commission, Municipal Finance Bureau)

　　16. Strengthen financing guarantee support. Further play the role of this Municipality’spolicy financing guarantee fund to ensure that new policy financing guarantee loans in 2020 will increase by more than 3 billion yuan over the previous year. For key protection enterprises for epidemic prevention materials and small, medium and micro enterprises affected badly by the epidemic situation, the policy financing guarantee fund keeps increasing support for financing guarantee. The financing guarantee fee rate for new applications for small, medium and micro enterprise loans is reduced to 0.5% / year, and the re-guarantee fee rate is halved. Guarantee fees for business start-up loans will continue to be waived.  (Responsible departments: Municipal Finance Bureau, Municipal Local Financial Supervision Bureau)

　　IV. Endeavoring to do well in helping enterprises to stabilize their posts

　　17. Continue to implement the unemployment insurance back-to-post policy. In 2020, this Municipalitywill continue to pay back 50% of the total unemployment insurance premiums actually paid by employers and their employees in the previous year to non-redundant, under-reduced, and eligible employers. (Responsible departments: Municipal Human Resources and Social Security Bureau, Municipal Finance Bureau)

　　18. Delay the adjustment of the social security contribution base. Beginning in 2020, adjust the start and end dates of the employees social insurance payment year (including the employees medical insurance year) in this Municipalityto be from July 1 of the current year to June 30 of the following year, postponed by 3 months (2019 employee social insurance payment year postponed until July 1, 2020). (Responsible department: Municipal Human Resources and Social Security Bureau)

　　19. The social insurance payment period can be extended. Due to the impact of the epidemic, this Municipality’ssocial insurance participating units, flexible employment personnel and urban and rural residents who fail to complete the registration and payment of social insurance premiums and other services on time are allowed to reapply after the epidemic. If the insured unit pays the social insurance premiums after the due date, no charge of a late payment fee is made after filing with the social insurance agency in this Municipality, which will not affect the personal rights and interests of the insured employees. The relevant repayment procedures can be completed within 3 months after the epidemic situation is resolved.  (Responsible department: Municipal Human Resources and Social Security Bureau)

　　20. Implement the training fee subsidy policy. Various enterprises in this Municipalityaffected by the epidemic, organizing employees (including labor dispatchers who work in the enterprise) to participate in various online vocational training during the suspension period shall be included in the scope of  each districts local education additional special funds for subsidies to employee training and shall enjoy 95% subsidy for actual training costs. Platform enterprises (e-commerce companies) and new-type enterprises may refer to the implementation. (Responsible departments: Municipal Human Resources and Social Security Bureau, Municipal Finance Bureau)

　　21. Reduce the medical insurance premium rate of employees appropriately. According to the status of the medical insurance fund income and expenditure, under the premise of ensuring no decrease in the level of medical insurance benefits of the insured and the smooth operation of the medical insurance system, the payment rate for employee medical insurance units is temporarily reduced by 0.5 percentage points in 2020. (Responsible departments: Municipal Medical Security Bureau, Municipal Human Resources and Social Security Bureau, Municipal Finance Bureau)

　　22. Implement flexible employment policies. Enterprises that have difficulty in production and operation due to the impact of the epidemic may stabilize their jobs by adjusting salary, rotation, flexible working hours, and comprehensive adjustments to use the annual rest days. The specific method is determined by the enterprise through consultation with employees. (Responsible department: Municipal Human Resources and Social Security Bureau)

　　V. Promoting enterprises’ orderly resumption of productionand work

　　23. Do a good job in serving and guaranteeing the resumption of production and work of enterprises. Supervise and help enterprises that resume production and work to implement epidemic prevention safety measures. Focus on the production and operation needs of various enterprises resuming work, and strengthen the supply of epidemic prevention materials such as masks, thermometers, and disinfectants. Rely on the regional cooperation mechanism of the Yangtze River Delta, give play to the role of professional organizations such as industry associations and industrial alliances, and strengthen the connection between enterprises through various methods such as raw material supply, logistics and transportation to help enterprises to resume production and work. (Responsible departments and units: Municipal EconomyInformation Technology Commission, Municipal CommerceCommission, Municipal Development and Reform Commission, relevant district people’s governments and development parks)

　　24. Strengthen the employment security of enterprises. Based on enterprise self-management epidemic prevention and control and risk assessment, guide enterprises to prioritize the return of employees to areas where the epidemic is stable. Promote the connection between employment supply and demand, build a service platform for enterprise employment docking, rely on WeChat, network, video and other channels to carry out various online recruitment activities, unblock the docking channels between enterprises, and help enterprises to ease the difficulty of recruiting. (Responsible department: Municipal Human Resources and Social Security Bureau)

　　25. Cultivate and support the development of new technologies, new models and new business enterprises. Accelerate the cultivation of new business models such as online shopping, online education, online office, online services, digital entertainment, digital life, and intelligent distribution. Vigorously develop health industries such as online diagnosis and treatment, original innovative drugs, medical supplies, and medical devices to support a number of high-growth Innovative SMEs. Increase the support for sci-tech innovation vouchers to sci-tech SMEs. In 2020, the maximum amount of sci-tech innovation vouchers accepted will be increased from 300,000 yuan to 500,000 yuan. Support telecom operators to provide free cloud-based office services such as cloud video conferencing for more than 6 months for SMEs affected badly by the epidemic. (Responsible departments: Municipal EconomyInformationTechnologyCommission, Municipal Development and Reform Commission, Municipal Science and Technology Commission, Municipal Commerce Commission, Municipal Finance Bureau)

　　VI.Optimizing the business environment for enterprises

26. Optimize enterprise service mechanism. Actively give play to the role of “All Handling through One Access” in government affairs services, strengthen the functions of citizen homepages and corporate web-pages, expand the coverage of the “Super Application” service, rely on this Municipality’s“Enterprise Service Cloud” to open up the “Last Mile” of policy services and promote quickly the implementation of a number of non-meeting approval items. A special window for small and medium-sized foreign trade enterprises will be opened on the single window platform of international trade, which will facilitate enterprises that do not meet each other during the epidemic prevention and control to handle import and export packages. Further give play to the role of the joint conference of service enterprises in this Municipality, address and resolve in a timely manner the problems of blocking and pain points in production, operation, investment and financing of enterprises. (Responsible departments: the General Office of the Municipal People’s’ Government, Municipal Development and Reform Commission, Municipal EconomyInformationTechnologyCommission, Municipal CommerceCommission)

　　27.Improve the credit repair mechanism of enterprises. Actively assist companies that have been affected by the epidemic and have broken trust in carrying out credit repair work. Those enterprises that have temporarily lost their income source due to the epidemic may submit credit records according to the adjusted repayment arrangements. Those that have untrustworthy behaviors such as delayed delivery, delayed loan repayment, and contract overdue caused by participating in the epidemic prevention work will not be included in the untrustworthy list. For enterprises affected by the epidemic that are unable to perform on time or to fulfill international trade contracts, the Shanghai CCPIT is supported to issue force majeure factual proof. (Responsible departments and units: Municipal Development and Reform Commission, Shanghai Headquarters of the Peoples Bank of China, Shanghai Banking and Insurance Regulatory Bureau, Municipal Commerce Commission, and CCPIT)

　　28. Strengthen the guarantee of legal services. Establish an emergency public legal service mechanism, and give priority to online, appointment and other methods for legal services such as notarization and legal aid. On relevant legal issues in epidemic prevention such as force majeure immunity, provide timely guidance and advice to enterprises and institutions in need. For disputes over contract performance, labor relations, and other disputes of enterprises caused by the epidemic, lawyers, notaries, and mediators shall be promptly organized to provide consulting, guidance, and mediation services. (Responsible department: Municipal Justice Bureau)

If there are other state support policies and measures related to the stable and healthy development of service enterprises, Shanghai shall comply with them. Relevant departments of the Municipal People’s Government are responsible for formulating and issuing detailed implementation rules for these policy measures; the district people’s governments may formulate specific implementation proceduresbased on actual conditions. These PoliciesMeasures come into force on the date of issuance, and are valid until three months after the end of the Covid-19 pneumonia epidemic (If the specific policy measure has a clear implementation period, the provision shall prevail).