Eight departments of Shanghai government launched 22 measures to Support the Development for Small and Medium-sized Enterprises (the "Circular"). The measures are aimed at reducing costs, helping them open up market space, boost their confidence and stimulate vitality after the shock of the COVID-19 outbreak. Shanghai Dongjin finds the below as the main points.
- Enhance tax cuts and fee reduction
The Circular requires fully implement of VAT reduction and exemption policies on small-scale taxpayers, and keeps extending the applicable period of VAT policies for public transportation, catering, accommodation, tourism, entertainment, culture, sports and other services to the end of 2020. SMEs are allowed to defer the payment of enterprise income tax till the first reporting period in 2021.
It also keeps the exemption for SMEs and individual businesses of their payments for endowment, unemployment and injury insurance as units until the end of 2020.
- Reduce the cost of production and operation for companies
The Circular include implementing national policies of cutting or waiving electric bills, broadband charges and state-owned housing rents. It is also to reduce the logistic cost and increase the employment subsidies.
- Explore both domestic and oversea markets
To expand the effective investment: government is promoting the development of new network construction like 5G, and some other significant project fields such as technology, society, transportation, fundamental facility, security and energy resource.
To develop new consuming trends in e-commerce, logistics direct delivery, internet diagnosis, online education, digital entertainment etc.
To supports SMEs to put their merchandises and exhibitions online.
- Improve the professional competence for SMEs.
Focus on the key industry chains, bring SMEs into cooperation in supply and demand, promote all-round cooperation among large, medium and small enterprises in innovation, creative design, manufacturing, material procurement, marketing and financing.
Improve the innovation ability of SMEs. Guide all kinds of innovative and entrepreneurial units to the direction of "specialization, branding and internationalization".
The government is to newly award certificates to 5,000 high-tech enterprises throughout the year
- Strengthen financing services for SMEs
To further expand the scale of policy-based financing guarantee funds by RMB 30 billion.
Lower the cost of loan from banks and financing agencies to SMEs;
To offer interest discounts on loans to travel agencies and A-class tourist attractions;
To develop supply chain financing;
- Optimize services of SMEs
To raise the proportion of non-divergent accounts liquidated during the year to 100 percent;
The government will build an "Integrated Online Platform" exclusive for the enterprises and provide personalized and accurate services for SMEs.
The government will offer specialist to be responsible for SMEs and to accept their complaints and solve their problems, and to guide service organizations to give discounts for enterprises and benefit them by no less than RMB 50 million.
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