On February 29, Jiangsu’s top economic planner explained in detail 13 out of 50 measures rolled out to cope with the impact of the novel coronavirus disease (COVID-19) outbreak and promote steady and sustainable development.
In the second such service, Jiangsu Development and Reform Commission focused on implementing the 13 measures, such as tax and fee cuts, subsidized loan and financial support, with 34 specific moves and matters.
For example, the fifth among the 50 measures is about preferential income tax rate for high-tech enterprises, weighted pre-tax deduction of enterprise R&D expense, exemption of VAT on technology transfer and development, and reduction and exemption of enterprise income tax on technology transfer. In practice, according to the commission’s new guideline, this article means the enterprise income tax on important high- and new-tech enterprises that are necessary to be supported by the state shall be levied at the reduced tax rate of 15%.
Jiangsu’s 50 measures have highlighted support to industries hit hard by the outbreak such as logistics, warehousing, tourism and catering. The province will exempt VAT for certain fresh meat and egg products in circulation.
In the tourism industry, companies facing with difficulties to repay a loan can delay the payment for up to one year. Miro, small and medium-sized businesses are provided with green channel to apply for loan, the incentive of low interest rate as well as the exemption of interest expenses incurred from January to June this year.
Preferential tax exemption since January 1 will be also provided to companies in tourism, accommodation, catering, recreation, civil aviation, water or highway transportation, taxi and other service industries hit hard by the epidemic.
