Covid-19 Update: Shanghai’s 50 New Support Measures for Businesses after the Lockdown

Covid-19 Update: Shanghai’s 50 New Support Measures for Businesses after the Lockdown

1. Covid-19 Update: Shanghai’s 50 New Support Measures for Businesses after the Lockdown

After a lockdown of nearly 3 months, Shanghai Municipal People’s Government promulgated 50 new support measures for businesses.1 These measures are enacted for the purpose of “promoting accelerated economic recovery and revitalization in a vigorous and orderly manner”. The principal measures are as follows:

(1) Taxes related measures

  • Corporate income tax:

Tax declaration deadline extended to June 30th, 2022,2 with possibility to extend another three months.

  • Property tax and urban land use tax:

Enterprises may apply for tax reduction/exemption on self-use properties/land when having difficulties in payment, except for enterprises engaging in industries that are restricted or discouraged.

(2) Expanding the scope of rental exemption

State-owned landlords shall waive six months’ rental for the following:

  • small and micro enterprises;
  • individually owned businesses;
  • private non-enterprise entities having difficulties in operation.

Non-state-owned landlords are encouraged to reduce rental for:

  • small and micro enterprises;
  • individually owned businesses;

and once non-state-owned landlords reduce rental, they can obtain a subsidy from government amounting to 30% of the total rental waived, capped at RMB 3 million.

(3) Reducing multiple enterprises’ operating charges

  • granting financial subsidies equal to 10% of the water fee,3 electricity fee and natural gas fee4 payable for three months;
  • exemption of entities’ domestic garbage disposal fees for three months.

(4) Granting subsidies for stabilizing employment

A one-off employment stabilizing subsidy of 600 yuan per employee, capped at 3 million yuan per enterprise shall be granted to enterprises who meet the following conditions:

  • catering, retail, tourism, transportation, sports and entertainment, accommodation, conferences and exhibitions or other industries in difficulty;
  • seriously affected by the pandemic;
  • no layoffs or few layoffs.

Should you need any details about the said new support measures, please kindly reach asialians@asiallians.com

https://www.shanghai.gov.cn/nw12344/20220529/c931ca8e68cd434293e122204c61ecc8.html

 

2. FDI: Administrative Provisions on Foreign-Invested Telecommunications Enterprises (Revised in 2022)

On April 7th, 2022, the State Council issued the Decision on Revising and Repealing Some Administrative Regulations, indicating that the Administrative Provisions on Foreign-Invested Telecommunications Enterprises (Revised in 2022) took effect on May 1st, 2022.

Compared to previous 2016 edition, many restrictions are lifted for foreign investors and the principal changes are as follows:

(1) The proportion of capital contributed by foreign investors in an enterprise engaging in basic telecommunications services5 shall not ultimately exceed 49% instead of the previous “50%”;

(2) For foreign investors operating value-added telecommunications business, the examination of their application documents shall be completed within 60 days instead of the previous 90 days by the competent department from acceptance of the application;

(3) Previously, foreign investors shall prove that they have a good performance and operating experience in telecommunications businesses; This requirement has been removed.

Should you need to know more details about the newly added industries, please kindly contact asiallians@asiallians.com

http://www.gov.cn/zhengce/content/2022-04/07/content_5683886.htm

As always, Asiallians remains at your service and our teams are currently mobilized in all our offices in Mainland China, Hong Kong and Taipei.

1. 50 new support measures for business are introduced in “Action Plan of Shanghai for Accelerating Economic Recovery and Revitalization”.
2. Previously the deadline is May 31st, 2022.
3. Including sewage treatment fee.
4. Excluding the gas consumed by gas-fired power generation enterprises.
5. Other than radio paging services.