Eight measures have been announced from the Hainan Provincial Government to support small and medium-sized enterprises.
1. Stable Employment
Small and medium-sized enterprises that have difficulty with production and operations due to the impact of the epidemic can, through consultation with employees, adjust wages, rotate shifts, adjust and use flexible working hours to try to retain their workforce and not lay off workers.
For those insured SMEs who do not lay off workers or reduce the number of staff, 50% of the total unemployment insurance premiums actually paid last year will be reimbursed.
For insured SMEs who face temporary production and operation difficulties, are expected to recover, and insist on no layoffs, the rebate rate will be determined based on the province’s monthly unemployment insurance premiums and the number of employees insured for the past six months in the province.
(Responsible unit: Provincial Department of Human Resources and Social Security, Provincial Department of Finance, Provincial Social Insurance Service Centre).
2. Postponing payment of social security expenses.
From the period beginning January 2020 to the month when the epidemic is lifted, the time limit for insurance registration, payment based declarations, insurance premium payment and other business processes will be extended to three months after the end of the epidemic.
If the relevant business is carried out within 3 months after the end of the epidemic, the personal rights records of the insured will not be affected, and no overdue fine will be charged.
The time limit for flexible employment personnel to pay social insurance premiums in 2020 will be correspondingly relaxed, and those who fail to handle insurance premium payment in a timely manner are allowed to handle their premium payment business within 3 months after the epidemic situation is resolved.
(Responsible unit: Provincial Department of Human Resources and Social Security, Provincial Department of Finance, Provincial Social Insurance Service Center).
3. Reducing or waiving rents
The rent for small and medium-sized enterprises leasing state-owned (including collective) assets for business use will be reduced or exempted in the first quarter of 2020.
(Responsible unit: Provincial SASAC, municipalities and counties)
4. Relieve operation pressure.
Fees for electricity, water and gas required for the production and operation of small and medium-sized enterprises can be deferred for 3 months from the date of this notice, and overdue fines can be exempted.
(Responsible unit: Provincial Development and Reform Commission, Provincial Water Department, Hainan Power Grid Company)
5. Reduce the housing provident fund payment standards.
From the date of this notice, small and medium-sized enterprises can pay the housing provident fund at the rate of 3% for six consecutive months.
(Responsible unit: Provincial Department of Housing, Urban and Rural Construction)
6. Partial reduction or exemption of taxes or fees
Due to the impact of the epidemic, the property tax and urban land use tax payable by small and medium-sized enterprises in the first quarter of 2020 will be reduced or exempted. Pharmaceutical and medical device enterprises engaged in the prevention and control of pneumonia caused by new coronavirus infection shall be given policy support in the form of a VAT rebate.
For qualified R & D institutions of relevant drugs, reagents and vaccines, a tax refund for purchasing domestic equipment shall be handled in full and on time.
(Responsible unit: Provincial taxation bureau)
7. Deferred payment of taxes
For small and medium-sized enterprises that have difficulty declaring due to the impact of the epidemic, the enterprise shall apply for an extension of the declaration according to law.
For small and medium-sized enterprises that have special difficulties and are unable to pay taxes on time, the enterprise shall apply for an extension of tax payment according to the law.
(Responsible unit: Provincial taxation bureau)
8. Strengthen financial interest discounts and guarantee support
Additional loans will be provided to key national epidemic prevention and control enterprises with preferential interest credit rates through special re-lending from the Peoples’ Bank of China.
For the key enterprises in Hainan that play a prominent role in supporting the prevention and control of the 2020 epidemic, medical products and medical equipment, percentage discounts will be given; new loans will be granted to key enterprises and key subsidies will be allocated.
The discount period of the above loans shall not exceed 1 year.
For guarantee loans that have been issued to individuals and small micro enterprise start-ups, if they are greatly affected by the epidemic situation, they can apply for extension of repayment.
In principle, the extension period shall not exceed 1 year, and the financial department shall continue to provide support.
The provincial government financing guarantee institutions should help small and micro enterprises to interface with financial institutions, cancel counter-guarantee requirements, reduce guarantee fees, and provide financing guarantee services for small and micro enterprises that do not have the ability to repay.
Government financing guarantee institutions at all levels shall perform their compensation obligations in a timely manner, and appropriately extend the time limit for recovery according to the impact of the epidemic.
If the conditions for write-off are met, the compensation losses shall be written off according to regulations.
(Responsible units: Municipal and county governments, provincial finance department, provincial local financial supervision bureau, provincial development and reform commission, provincial industry and information technology department, provincial human resources and social security department, provincial SASAC)