Shanghai Lifts Lockdown from June 1, 50 New Support Measures for Businesses

  

Shanghai Lifts Lockdown from June 1, 50 New Support Measures for Businesses

Shanghai Lifts Lockdown from June 1, 50 New Support Measures for Businesses

Update: On June 10, 2022, the Shanghai Municipal Tax Service released the Guidelines on the Implementation of Tax Policies, as a supporting document to the Action Plan of Shanghai for Accelerating Economic Recovery and Revitalization. Divided into seven parts, with each part containing Content of Policy, Policy Documents, Ways of Application, Paths of Handing, and Policy Questions and Answers for taxpayer’s easy access, the document clarified that the tax declaration periods would be extended, property tax and urban land use tax would be waived or reduced for enterprises in difficulty, refunds of excess input VAT credits would be expanded, VAT would be exempted for express delivery services, export tax rebates would be supported for foreign trade, taxes on the purchase of selected passenger vehicles would be reduced on a time-limited basis, and preferential tax policy would be implemented to encourage college graduates to get a job or start a business.To get more shanghai stock market news, you can visit shine news official website.

After a nearly two-month lockdown, Shanghai is ramping up new supportive measures to reboot its economy. On May 29, 2022, the Shanghai Municipal Government released its Action Plan of Shanghai for Accelerating Economic Recovery and Revitalization (Action Plan), which provides 50 measures in eight areas.

According to the Action Plan, Shanghai will abolish the approval system for enterprises to resume work and production starting from June 1, 2022. A series of policies to stabilize foreign investment, promote consumption, and increase investment have been proposed. In addition, employers that have been impacted by the COVID-19 containment measures can apply for deferred payment of housing provident funds. The deferral period is from April to December 2022, after which the payments must be made. During this period, employees who have already made payments and deposits can withdraw payments and apply for housing provident fund loans as normal and will not be impacted by the deferral of payments.

People who have made deposits and have been impacted by the pandemic and cannot repay the housing provident loan as normal will not be subject to overdue fees, nor will this be included in their credit record. In addition, the withdrawal limit for employees who apply to withdraw housing provident funds to pay rent has been raised from RMB 2,500 (US$375) to RMB 3,000 (US$450) per household (including single-person households).

Finally, the deadline for taxpayers who file monthly and quarterly tax returns has been pushed back to June 30. The deadline for paying 2021 corporate income tax (CIT) has also been extended to June 30. Taxpayers who still have difficulties settling the tax liabilities at this time can either apply for an extension of filing declaration or a deferral of tax payment for up to three months to the tax authorities.

Micro and small-sized enterprises (MSEs) and sole proprietorships that engage in production and business activities and rent state-owned property have previously been exempted from rent payments for a period of up to six months, without requiring them to provide proof of having been impacted by the pandemic.

Subletters do not have the right to the rent exemption and the property owners are required to ensure that the rent exemption is extended to the primary lessee only.

Non-state-owned property owners will also be encouraged to reduce rent for MSEs and sole proprietorships that lease their property for business. Certain eligible companies that reduce rent for these businesses can get a subsidy of 30 percent of the total rent waived, capped at RMB 3 million (US$450,220), although the final amount will be controlled in accordance with local government budgets. Non-resident users of utilities are eligible for up to 10 percent subsidies for water (including sewage treatment), electricity, and natural gas (except for gas used by gas-fired power generation companies). In addition, non-resident users will not have these utilities cut off if they fail to pay the fees in time during the COVID-19 containment period and will not be subject to any penalties. In addition, non-resident users will be exempted from over-quota and progressive water charges in 2022.

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