Heilongjiang Province provides financial and taxation policy support to enterprises to support small and medium-sized enterprises in coping with the epidemic! (Attached with full text)

In order to help small and micro enterprises that have been affected by the novel coronavirus pneumonia epidemic and have encountered difficulties in production and operation to develop healthily, the Heilongjiang Provincial Government issued the "Policy Opinions on Responding to the Novel Coronavirus Pneumonia Epidemic and Supporting the Healthy Development of Small and Medium-sized Enterprises." The full text is as follows.

Policy opinions of the General Office of the People's Government of Heilongjiang Province on responding to the novel coronavirus pneumonia epidemic and supporting the healthy development of small and medium-sized enterprises

To all municipal (prefectural) and county (city) people's governments (administrative offices), and all directly affiliated units of the provincial government:

In order to thoroughly implement the important instructions of General Secretary Xi Jinping on resolutely winning the battle against the epidemic, fully implement the decisions and arrangements of the Party Central Committee, the State Council, the Provincial Party Committee, and the Provincial Government on epidemic prevention and control, and support the healthy development of small and micro enterprises that have been affected by the new coronavirus pneumonia epidemic and have encountered difficulties in production and operation. The following policy opinions are formulated:

1. Providing financial and tax policy support to enterprises

1. Implement financial support policies. For enterprises included in the list of production enterprises of materials urgently needed for epidemic prevention and control in the province determined by the state and the province, which produce masks, isolation suits, protective clothing, electronic thermometers, etc., policy support such as loan interest subsidies, guarantees, equipment investment subsidies, and government procurement green channels will be provided. (Provincial Department of Finance, Provincial Department of Industry and Information Technology, Provincial Local Financial Regulatory Bureau, and municipal and county governments)

2. Implement corporate tax reduction and exemption policies. We will earnestly implement various tax and fee reduction policies. Small and medium-sized enterprises that have suffered heavy losses due to the epidemic and whose production and operations have been significantly affected can apply to the tax authorities for hardship tax reduction and exemption policies for property taxes and urban land use taxes if they meet the relevant conditions. (Provincial Taxation Bureau, Provincial Finance Department)

3. Provide policy support for deferred tax payment. During the epidemic prevention and control period, small and medium-sized enterprises that are unable to pay taxes on time due to the impact of the epidemic and meet the conditions for tax deferral can apply for tax deferral through the electronic tax bureau. The tax authorities will shorten the processing time and grant tax deferral in accordance with the law. The maximum period for tax deferral in accordance with the law shall not exceed three months. (Provincial Taxation Bureau)

4. Priority will be given to tax refunds for related enterprises. Priority will be given to and accelerated processing of value-added tax refunds for eligible small and medium-sized enterprises producing medicines, medical devices and other epidemic prevention and control materials, and refunds for domestic equipment purchased by drug, reagent and vaccine research and development institutions, to alleviate the occupation of corporate funds and support companies in releasing production capacity and expanding production. (Provincial Taxation Bureau)

5. Handle business suspension registration and quota adjustment in a timely manner. During the epidemic prevention and control period, the tax authorities have simplified the registration process for suspension of business for individual industrial and commercial households that implement regular and fixed-rate levies. Taxpayers can handle it themselves through the electronic tax bureau or handle it in batches initiated by the tax authorities without applying. For businesses whose operations are affected by the epidemic, the quotas will be adjusted reasonably based on actual conditions. (Provincial Taxation Bureau)

2. Stabilize the enterprise workforce

6. Implement policies to support enterprises and stabilize employment. For insured enterprises that are facing temporary production and operation difficulties but have hope of recovery and insist on not laying off or laying off fewer employees, 50% of the social insurance premiums payable by the enterprise and its employees in the previous year for 6 months will be refunded. The implementation period is until December 31, 2020. (Provincial Department of Human Resources and Social Security, Provincial Department of Finance)

7. Expand the scope of subsidies for on-the-job training. If the insured enterprises newly employ new workers and provide on-the-job training, the enterprises will be given a training subsidy of 500 yuan per person per month, for a maximum of six months. If the period is less than one month, the subsidy will be calculated based on the actual number of days the training is carried out. (Provincial Department of Human Resources and Social Security, Provincial Department of Finance)

III. Increase Financing Support

8. Strengthen credit support for small and micro enterprises. Guide corporate banking institutions to increase the supply of credit financing and provide good financial services to troubled enterprises by adjusting regional financing policies, internal funds transfer pricing, performance evaluation methods and other measures. Continue to implement the relevant requirements of "two increases and two controls" for small and micro enterprises. Bank institutions shall not blindly withdraw loans, cut off loans, or suppress loans for industries such as wholesale and retail, accommodation and catering, logistics and transportation, cultural tourism, etc. that have been severely affected by the epidemic, as well as enterprises with development prospects but temporarily in trouble. For enterprises that are severely affected by the epidemic and have difficulty repaying their loans when due, they may be granted an extension or a renewal of the loan. (Heilongjiang Banking and Insurance Regulatory Bureau, Harbin Central Branch of the People's Bank of China)

9. Focus on reducing the financing costs of small and micro enterprises. Banking institutions are encouraged to increase support for small and micro enterprises by appropriately lowering loan interest rates, improving loan renewal policy arrangements, and increasing credit loans and medium- and long-term loans. In particular, for small and medium-sized enterprises in key areas such as those that are essential for epidemic prevention and control and people's basic living necessities, the loan interest rates will be appropriately lowered to ensure that the financing costs of small and micro enterprises in 2020 are no higher than the financing costs in the same period of 2019. (Harbin Central Branch of the People's Bank of China, Heilongjiang Banking and Insurance Regulatory Bureau)

10. Improve the efficiency of financial services. In response to the financing needs of enterprises severely affected by the epidemic, various banking institutions have established and launched fast approval channels to simplify business processes and effectively improve business processing efficiency. Continue to carry out activities such as "Hundred Banks Serving Ten Thousand Enterprises" and "Financial Support for Small and Micro Private Enterprises", guide financial institutions across the province to make full use of online forms such as the Internet, telephone, and WeChat, and continue to connect with small, medium and micro enterprises affected by the epidemic, and strive to meet the financing needs of enterprises. (Heilongjiang Banking and Insurance Regulatory Bureau, Harbin Central Branch of the People's Bank of China)

11. Give full play to the role of government financing guarantees. During the epidemic prevention and control period, government financing guarantee institutions at all levels implemented a "conditional acceptance" policy for small and micro enterprises that were severely affected by the epidemic, cancelled counter-guarantee requirements, opened up green channels in accordance with the principle of urgent matters and special matters being handled specially, shortened approval time limits, and helped enterprises obtain loans as soon as possible. Reduce the guarantee and re-guarantee rates, and reduce the average guarantee rate for small and micro enterprises that are severely affected by the epidemic to below 1%. For small and micro enterprises that are truly unable to repay, government financing guarantee institutions at all levels that provide financing guarantee services to them should fulfill their compensation obligations in a timely manner, appropriately extend the recovery period depending on the impact of the epidemic, and if the conditions for write-offs are met, write off the compensation losses in accordance with regulations. (Provincial Local Financial Regulatory Bureau, Provincial Finance Department)

4. Helping enterprises stabilize production

12. Help enterprises stabilize production and operation. Assist enterprises in solving problems such as prevention and control material guarantee, raw material supply, logistics and transportation, strengthen prevention and control supervision and guidance, and ensure that enterprises can produce normally under the premise of meeting epidemic prevention and control standards. Simplify the application process for emergency transport vehicle passes for epidemic prevention and control, and provide conveniences such as free highway tolls and priority passage for enterprises transporting emergency materials, products, and raw materials. (Provincial Department of Industry and Information Technology, Provincial Development and Reform Commission, Provincial Department of Transportation)

V. Reducing the burden on enterprises’ production and operation

13. Reduce or exempt rent for small and medium-sized enterprises. Owners (landlords) of large commercial buildings, shopping malls, market operators, etc. are encouraged to appropriately reduce or exempt rent for small and medium-sized tenants during the epidemic. For small and medium-sized enterprises that lease state-owned assets for business purposes, one month's rent will be waived and two months' rent will be reduced by half. During the epidemic, we guided the entrepreneurial platforms of small and micro enterprises that had benefited from financial support policies to take the lead in reducing or exempting the rent for the small and micro enterprises that had leased properties. (Provincial State-owned Assets Supervision and Administration Commission, Provincial Department of Finance, Provincial Department of Industry and Information Technology)

14. Support entrepreneurial parks for small and medium-sized enterprises. Priority policy support will be given to various carriers such as entrepreneurial parks, science and technology business incubators, and entrepreneurial innovation bases that reduce or exempt rent for small and medium-sized enterprises during the epidemic. (Provincial Department of Science and Technology, Provincial Department of Industry and Information Technology)

The above policies shall be implemented in accordance with relevant regulations if the implementation period is clearly stipulated. If there is no clear period, it will be implemented until the novel coronavirus pneumonia epidemic is lifted. Our province will comply with the relevant policies issued by the state.

General Office of the People's Government of Heilongjiang Province

February 5, 2020