Notice on Issuing the Measures of Nansha District of Guangzhou Municipality for Supporting Enterprises

Normative Document No 2 [2022] of the Office of the Administrative Committee of Nansha Development Zone of Guangzhou Municipality

Notice on Issuing the Measures of Nansha District of Guangzhou Municipality for Supporting Enterprises

All towns (street communities) offices, departments of and agencies directly under Nansha Development Zone (Nansha district), and municipal entities in Nansha district,

The Measures of Nansha District of Guangzhou Municipality for Supporting Enterprises have been approved by the administrative committee and the district government, and are hereby issued to you for your compliance and implementation. Problems encountered in the implementation shall be directly reported to Nansha District Bureau of Development and Reform.

Office of the Administrative Committee of Nansha Development Zone of Guangzhou Municipality

General Office of Nansha District People's Government of Guangzhou Municipality

May 26, 2022

Measures of Nansha District of Guangzhou Municipality for Supporting Enterprises

These measures are formulated in light of the realities of Nansha district and in accordance with the decisions and arrangements made by the CPC Central Committee and the State Council, the work requirements of the CPC Guangzhou municipal committee and the people's government of Guangzhou municipality, and the general goals of prioritizing economic stability while pursuing progress, and coordinating COVID-19 response with economic and social development. More specifically, the measures are developed based on the full implementation of the business incentives launched by the superior governments, to further alleviate burdens on enterprises, stimulate market vitality, and support enterprises in Nansha district, especially micro, small, and medium-sized enterprises (MSMEs) in industries hit hard by COVID-19, thus boosting market confidence and anchoring market expectations.

Ⅰ. Inclusive support measures

(I) A new tax incentive package

The implementation of policies regarding the refund of term-end excess input value-added tax (VAT) credits shall be intensified. Further steps shall be taken to implement the VAT exemption of eligible small-scale taxpayers with monthly sales below 150,000 yuan ($21,931), preferential corporate income tax (CIT) rates and reduction of "six taxes and two fees" (i.e., resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp tax (excluding stamp tax on securities transactions), cultivated land occupation tax, education surcharge, and local education surcharge) for micro and small enterprises, and the additional VAT credit policies for the producer and consumer services industry. The policy that allows the deferred payment of certain taxes and fees by MSMEs in the manufacturing industry will continue to be effective. (Responsible entity: Taxation bureau of Nansha district)

(II) Reductions of enterprises' social security contributions

The temporary reduction of unemployment insurance and work-related injury insurance premiums will be extended to April 30, 2023. Specifically, unemployment insurance will continue to adopt a floating premium rate system with a 1 percent benchmark rate; the employers' contribution rate of work-related injury insurance will be temporarily lowered by 20 percent based on the existing industry benchmark rate and the floating rate system. Nansha district will continue to reimburse unemployment insurance to companies that in the previous year had no layoffs or had a layoff rate not higher than the target national surveyed urban unemployment rate (5.5 percent) or not higher than 20 percent for companies with 30 or less insured employees, while meeting other applicable requirements. For a large enterprise, 30 percent of the unemployment insurance premiums actually paid by the enterprise and its employees in the previous year shall be refunded; for an MSME, the refund rate shall be 90 percent. (Responsible entities: Bureau of human resources and social security and taxation bureau of Nansha district)

(III) Enhancement of financial support

Stronger credit enhancement support. Government financing guarantee institutions are encouraged to provide credit enhancement support to qualified MSMEs, assume the responsibility of repayment as warranted in accordance with the law, and assist enterprises affected by COVID-19 in renewing guarantees and loans. Government-backed financing guarantee companies will be granted a subsidy to cover the guarantee fees they reduced for MSMEs in Nansha district. (Responsible entity: Financial work bureau of Nansha district)

Greater loan interest subsidies. Where MSMEs in the district receive loans from banks or other financial institutions (rollovers shall be taken as new loans) between April and June 2022 (subject to the loan issue time), a subsidy of 30 percent of the actually paid loan interest will be provided for up to three months, subject to a maximum amount of 50,000 yuan per enterprise. (Responsible entity: Financial work bureau of Nansha district)

(IV) Rent reductions for enterprises

Rent reductions for State-owned properties. Micro and small enterprises and individual businesses in the manufacturing and service sectors that rent land and/or housing properties (excluding residential housing) from enterprises wholly or partially owned or actually controlled by the state or from administrative public institutions will be exempted from rent for three months during the term of the contract in 2022; those located in a city with medium- and high-risk areas in 2022 will enjoy rent exemption for another three months, i.e., a total of six-month rent exemption in the year. Competent departments should earnestly fulfill their responsibilities, ensure the final lessees can benefit from the rent exemption policy, and encourage intermediate tenants to reduce the sublease prices. Where the rent reduction or exemption affects the business performance of State-owned enterprises and institutions, it shall be recognized according to the actual situation through assessment. (Responsible entity: Finance bureau of Nansha district)

Support for major commercial complexes to reduce and exempt rents. Key commercial complexes that have reduced or exempted rents for their tenants can enjoy a subsidy of up to 30 percent of their economic contributions to the district generated by the rental income in the previous year. The subsidy amount will be determined based on the rents reduced or exempted and shall not exceed 500,000 yuan per enterprise. (Responsible entities: Commerce bureau, finance bureau, and taxation bureau of Nansha district)

Support for rent reductions for non-State-owned properties. Collectives, non-State-owned enterprises and individual proprietors are encouraged and supported in offering rent waiver, reduction, deferral or installment plans to tenants in industries hit hard by COVID-19. Property owners can enjoy property tax and urban land use tax relief according to the number of months of the rent reduction or exemption they offer. (Responsible entities: Town (street community) governments and taxation bureau of Nansha district)

(V) Subsidies for enterprises' epidemic response

For industrial enterprises above designated size, construction enterprises of qualification level, service enterprises above designated size, retail and catering enterprises above designated size, and "specialized, refined, special and innovative" enterprises ("two highs and four news" enterprises, namely, businesses involving high technology, high growth, new technology, new industry, new business forms, and new patterns) that are registered, have a physical office, and operate in Nansha district, and stores, farmer's markets, major commercial complexes, urban public transport, taxis, road passenger transport, freight transport enterprises and other enterprises that purchase epidemic prevention supplies and disinfection services, a subsidy will be granted to cover 30 percent of their epidemic response expenditure, subject to a maximum amount to 30,000 yuan per enterprise. (Responsible entities: Bureau of industry and information technology, bureau of housing and urban-rural construction, commerce bureau, administration for market regulation, finance bureau, and other functional departments of Nansha district)

Ⅱ. Support measures for the industrial manufacturing industry

(VI) Promotion of industrial production capacity upgrades

Support for enterprises' investment expansion. Industrial investment projects in 2022 will be given a one-off reward according to the completed fixed asset investment included in the statistics from January to December 2022. More specifically, enterprises will be rewarded 100,000 yuan if the completed fixed assets investment is between 100 million yuan to 500 million yuan; or 200,000 yuan if such investment is higher than 500 million yuan. (Responsible entity: Bureau of industry and information technology of Nansha district)

Support for industrial enterprises in scaling up. A one-off reward of 50,000 yuan will be given to new industrial enterprises above designated size in 2022. (Responsible entity: Bureau of industry and information technology of Nansha district)

Ⅲ. Support measures for the service industry

(VII) Stimulation of consumption demand

E-CNY digital red packets. Major commercial complexes are encouraged to carry out consumption promotion activities. Nansha district will allocate 10 million digital yuan to promote consumption in the catering and retail sectors and stabilize the economy. (Responsible entity: Commerce bureau of Nansha district)

Cultural, tourism and sports consumption vouchers. Residents will be given consumption vouchers and are encouraged to use them in the cultural, tourism, and sports venues in the district. Subsidies will be granted according to the use of consumption vouchers. (Responsible entity: Bureau of culture, radio, television, tourism and sports of Nansha district)

Group tour reward for travel agencies. A Nansha-based travel agency that organizes a group tour (with 20 or more people) in the district will be granted a subsidy of 40 yuan per person, subject to a maximum amount of 200,000 yuan per agency. (Responsible entity: Bureau of culture, radio, television, tourism and sports of Nansha district)

(VIII) Promotion of the recovery of trade and service industries

Support for the business expansion of trade and service industries. New enterprises above the designated size in the wholesale industry in 2020 will be given a one-off reward of 50,000 yuan. Enterprises in accommodation and catering industries are encouraged to expand their business scale. For each 10 million yuan increase in business turnover during the second half of 2021 compared with the same period last year, a reward of up to 50,000 yuan will be granted, subject to a maximum amount of 2 million yuan for each enterprise. (Responsible entity: Commerce bureau of Nansha district)

Support for catering and retail businesses in lockdown or partial lockdown zones. Supermarkets and restaurants that are located in lockdown or partial lockdown zones (including areas subject to the same management methods as partial lockdown zones) will be granted support of up to 100,000 yuan and 20,000 yuan respectively, provided that they follow the prevention and control measures and maintain their operation during the epidemic, and resume normal business when conditions permit. (Responsible entities: Commerce bureau, town (street community) governments, and finance bureau of Nansha district)

Support for cultural and sports service enterprises for business suspension. Cultural and sports service enterprises that are instructed to temporarily suspend operations in line with prevention and control measures launched by competent authorities will be granted a subsidy of up to 2000 yuan per day for business suspension. (Responsible entities: Publicity department of the CPC Nansha district committee, bureau of culture, radio, television, tourism and sports, bureau of public security, finance bureau, and town (street community) governments of Nansha district)

Ⅳ. Quality government services

Fast handling and implementation. Efforts shall be made to fully implement business support policies issued by superior departments, accelerate the allocation of special funds for enterprises, and strengthen the incentive role of the district's industrial development special funds, so as to ease financial difficulties for enterprises. For enterprises that sign government procurement agreements or service contracts with functional departments in support of the district's COVID-19 response efforts, the functional departments shall make timely payment as per the contract. (Responsible entities: functional departments responsible for policy-making, and finance bureau of Nansha district)

Greater legal service support. Legal service agencies shall be supported to offer high-quality professional legal services for micro and small enterprises, individual businesses, and private non-enterprise entities in coping with legal disputes and risks concerning COVID-19 prevention and control. (Responsible entity: Justice bureau of Nansha district)

Financing facilitation. An SME credit risk compensation pool and a diversified MSME financing risk mitigation and sharing mechanism shall be established to enable wider access to financing for SMEs. The one-stop multi-functional financing service online platform "Celoan" shall be further improved to provide greater functions and services. Financial agencies shall be encouraged to open green channels for SMEs hit hard by the epidemic and provide them with financial assistance by extending repayment deadlines, exempting penalty interests and other market-oriented means. (Responsible entities: Financial work bureau and credit office of Nansha district)

Support for enterprises to participate in government procurement. All government procurement projects on accommodation, meeting, catering, etc. shall be subject to the government spending regulations, and shall not restrict enterprises from participation with star ratings, ownership and other thresholds. The Party and government organs, enterprises, public institutions and social organizations in the district are encouraged to entrust travel agencies to organize such activities as Party building, public affairs events, trade unions meetings, and exhibitions; the payment methods are not limited to the government spending card, and proportion of pre-payment can be increased as appropriate. The service purchaser may provide the travel agencies with the service items to be invoiced, or the agency may issue a comprehensive invoice and a list of expenses that is consistent with the contract as the basis for reimbursement. (Responsible entities: Bureau of culture, radio, television, tourism and sports and finance bureau of Nansha district)

For the purpose of these Measures, "medium- and high-risk areas and lockdown or partial lockdown zones" refer to medium- and high-risk areas and the street communities (towns) that have been or are currently under lockdown or partial lockdown according to the official COVID-19 announcements; "industries hit hard by COVID-19" refer to the accommodation and catering industries, retail, transportation, culture, sports, entertainment, tourism, and exhibition industries.

These Measures shall come into force on the date of promulgation and shall remain in force until Dec 31, 2022, unless otherwise stipulated by national, provincial and municipal policies. Relevant support policies issued at national, provincial, and municipal levels shall be faithfully implemented in Nansha district. Enterprises that enjoy the benefits of this policy may also enjoy the benefits of other policies in Nansha district.

Form of Disclosure: Active Disclosure

Issued by Secretariat of the Office of the Administrative Committee of Nansha Development Zone of Guangzhou Municipality on 26 May, 2022