Whilst we endeavour to provide accurate and up to date information, companies should liaise with local partners, government departments or CBBC regional offices to get the current take. Rules and policies vary from region to region and change frequently. A more detailed city by city update can be found at the CBBC website, and below is an overview of some of the financial assistance available.
Most cities and regions have postponed the deadline for filing tax returns. These vary from city to city, with some cities, such as Xian, offering up to 6 months extra time to comply with tax obligations.
China’s Labour Department will refund up to half of the total funds paid in to the unemployment insurance fund during the whole of 2019, as long as no staff are terminated.
For certain types of company, such as travel agencies, 80% of the insurance bond held by the government can be refunded. Companies have seen these returned within 48 hours of application in Beijing.
SMEs do not need to pay enterprise pensions, unemployment, or work injury insurance from February to June 2020. Large enterprises will only be required to pay half. There are also further discounts on medical insurance funds available for the year. In most regions, companies will benefit from a grace period of three months from the end of the epidemic emergency to clear payment of any overdue social insurance. However, local policies apply.
If a new employee delays their registration or applies late for their work and resident permits, they will not receive penalty fines.
Local subsidies will cover 95% of the total expenses for employees wishing to carry out online training and betterment.
In some districts, businesses that rent from state-owned premises or assets will be granted discounts and rent holidays. If businesses rent for one month, they will be fully exempted, and will pay half if they rent for two months.
Discounts are also available from state-run utility companies. Landlords are encouraged to reduce the rent for SMEs that are renting business premises. Landlords and SMEs should negotiate and come to an agreement about reduced rental fees.
China’s central bank has lowered interest rates and instructed banks to support local businesses. In Shanghai, Companies involved in health and safety or essential products and services can receive loans at a rate of no more than 1.6%. Further discounts on loans in various regions are also available.
For some key sectors, direct financial assistance from the government is being made available.
Reductions on real estate tax and urban land use tax is available in many regions.
Companies can obtain VAT refunds and exemptions, especially those working in affected industries. Furthermore, companies in industries such as transport, hospitality etc can deduct losses against profits for eight years, instead of the standard five.
Hawksford helps companies with China company registration and is experienced in meeting the regulatory compliance, tax, legal, accounting, HR services and other outsourced needs of global clients seeking to invest in Asia.
CBBC’s flagship consumer event, China Consumer, will take place in London on 14 October. China’s consumer market…
In a bid to strengthen its consumer economy and boost its global influence, Shanghai is…
Anne Stevenson-Yang is originally from Washington DC. She moved to Beijing in 1993 to work…
In April 2019, the Shanghai International Circuit hosted the 1,000th Formula One Grand Prix. Little…
The latest official data published by Beijing shows the Chinese economy making a stronger-than-expected start…
From live streaming to influencer collaborations, which marketing method is right for your business in…