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Social security premium incentives. On February 8, the Ministry For those that lease the commercial real estates, the commercial
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of Human Resources and Social Security stated that insured property owners are encouraged to reduce or exempt the rents
enterprises and individuals are allowed to defer payment of social for SMEs. For the entrepreneurship carriers, such as tech
security premium, and the rights and interests of the individuals parks, incubators, universities tech parks, maker spaces and
will not be affected. The payment should be completed within 3 entrepreneurship bases, would be subsidized if they reduce the
months after end of the epidemic situation. rents for SMEs.
The decision was made at the State Council executive meeting
chaired by Premier Li Keqiang on February 18 that SMEs will be Noteworthy measures:
exempted from pension, unemployment and work-related injury
insurance premiums periodically, the total of which is expected to Nanning, Guangxi Province: Subsidies will be given to the commercial property
be up to 500 billion yuan nationwide. At the same time, before the owner who reduce or exempt the rents for SMEs. During the period of February
end of June, enterprises can apply for deferred payment of housing to June, if the rent reduction or exemption totals exceeds 1 million yuan and the
provident funds, while employees unable to repay their housing reduction or exemption ratio reaches 30% of the rent, or rent reduction or exemption
provident funds due to the epidemic situation would not be overdue. exceeds 500,000 yuan and the reduction or exemption ratio reaches 50% of the rent,
15% of the total rent will be given to the commercial property owner at large, which
For SMEs affected by the epidemic and having difficulties in will be no more than 2 million yuan.
production and operation, they can apply to reduce deposit ratio Sichuan Province: Provincial government will provide subsidies as less than 50
of housing provident fund. The minimum can be reduced to 5% as percent of the rent reduction to the entrepreneurship incubation bases which reduce
nationally prescribed, and the period does not exceed one year. For or exempt rents for SMEs, and the total amount of subsidies for each base shall not
those that are indeed unable to pay the housing provident fund in exceed 2 million yuan.
full and meet the deferred payment requirement, the enterprises
may be allowed to defer payment for up to one year. On February Fujian Province: The practice of Fujian Province is to provide an operating subsidy
for no less than 3 months, the standard of which is 30% of the total rent reduction or
22, the National Medical Insurance Bureau prescribed that starting exemption.
from February 2020, provinces could halve the contribution ratio
of enterprises on employees’ medical insurance, according to the Waiving administrative fees. Some kinds of administrative fees
fund ’s operating conditions and actual demands, while ensuring would be exempted and the subsidies would be provided for the
the medium- and long-term balance of revenue and expenditure. SMEs in service industries which have been seriously affected.
The period of reduction shall not exceed 5 months.
Noteworthy measures: Noteworthy measures:
Beijing: Some administrative fees will be exempted from SMEs, including special
Shanghai: The Enterprises’ contribution ratio of employees’ medical insurance
premiums will be lowered by 0.5% in 2020. equipment inspection fee, sewage treatment fee, and road occupation fee, which is
estimated to save 70 million yuan for all the eligible enterprises per month totally.
Guangdong Province: 6 months of urban sewage treatment fees will be refunded to
Reducing rents. For SMEs that lease the state-owned assets, the enterprises affected by the epidemic.
if they resume or stop their production and operation activities
in accordance with government requirements or regulations of Hangzhou, Zhejiang Province: For small and micro enterprises in the industries of
commerce, catering, tourism, accommodation, transportation, logistics and delivery,
epidemic prevention and they do not lay off employees or have with an annual tax of less than 500,000 yuan, the government will grant two months
few layoffs, the enterprise can be exempted from rent for 2 to 4 subsidies.
months according to the respective measures of the provinces.