There is the growing awareness that businesses must be kept stable under the complexity of current epidemic and economic background. As such, Nanjing Jiangbei New Area, a national-level new area, is the first of its kind in China to issue policies offering financial support for businesses affected by the novel coronavirus.
Given the current situation, Nanjing Municipal People’s Government recognizes that it must make overall plans for the future.Hence Nanjing Jiangbei New Area formulated the new policies yesterday. There are two varieties; those which apply to Nanjing City as a whole and those that are applicable only to Jiangbei New Area.
Nanjing-Wide Financial Support for Business
The Nanjing Municipal Bureau of Human Resources and Social Security yesterday issued “Several Measures on Supporting the Development of Service Enterprises during the Epidemic Prevention and Control Period”.
Nanjing businesses are obliged to keep on all their employees during the epidemic, on full salary. On the other hand, they can offset employee social security contributions for a period of 6 months after the epidemic is deemed at an end.
For employees who need to stop working for treatment after their quarantine period ends, the enterprise is entitled to pay sick-leave pay that is not less than 80 percent of that for the minimum wage.
Fiscal Support Policies in Nanjing Jiangbei New Area
Everyone knows about Pudong (New Area) in Shanghai. Jiangbei New Area is Nanjing’s answer to Pudong. These state-level new areas are special economic-development zones supported by central government. For this reason, Jiangbei New Area is not a district of Nanjing, rather it is a defined area within Jiangbei on the northern banks of the Yangtze River. It falls under the direct control of the Nanjing municipal government.
As a state-level new area, Jiangbei New Area is the lucky recipient of the most generous of the new policies. Unsurprisingly, at the top of the list comes financial assistance for businesses involved in the fight against 19-nCoV.
For newly developed, mass-produced epidemic prevention and control products, government funding shall be provided amounting to 10 percent of the project’s total R&D expenditure. Any one enterprise may receive a maximum of ¥500,000.
Fiscal help is also available in Jiangbei New Area for service enterprises significantly impacted by the coronavirus. Such sectors include tourism, accommodation, catering, exhibition, commerce, education and training. Appropriate subsidies shall be awarded after assessment and confirmation by a competent department.
As regards tax, companies experiencing difficulty in paying property tax and local tax may apply for relief. Small and medium-sized enterprises that are having difficulty in reporting due to the impact of the epidemic are permitted to apply for deferred reporting. Enterprises that have special difficulties and cannot pay tax on time may apply for deferred tax payment.
Finally, companies renting state-owned offices shall be exempt from rental payment for 3 months. The policy applies to offices of less than 2,000 square metres.
So, while it is a far cry from business as normal in China, we are at least now starting out on the road to economic recovery.
