Impact of Coronavirus: the Chinese government helps!
Sadly enough the Coronavirus (Covid-19) is still making headlines every day. As of 14 February more than 64.000 people are infected and more than 1.381 passed away. The Chinese government has taken drastic measures to conquer and control the spread of the virus, factories and offices are still closed or slowly starting up again. It is very likely that this will have a serious impact on both people and companies, inside and outside China.
Government measures to help
The central and local governments have implemented a lot of measures to mitigate the financial and administrative consequences. From a national level the government has issued directives for further implementation by the local governments. So the actual policies may vary locally.
Locally, most governments offer some form of the support listed below:
Companies can apply for postponement of paying taxes.
Exemption to pay rent
At lot of local governments offer companies an exemption from paying rent if they rent from state-owned real estate companies. The private real estate companies are also asked to pitch in and offer the same exemption.
Lower utility and administrative Costs
Some regions have given a discount on the prices of electricity and do not charge some administrative fees, such as sewage treatment fees and road occupation fees.
Unemployment insurance payments refund
Companies are encouraged to not lay of personnel by most local governments offering a percentage of refunds for the paid unemployment insurance contributions the past year and this year.
Real estate and urban land use taxes
If companies face difficulty to pay real estate and urban land use taxes, they can apply for an exemption or reduction.
On top of this the national Chinese government also published additional measures:
Losses carry period extended for severely impacted sectors
Companies active in the transportation, catering, accommodation and tourism sectors may apply for an extension of the period to carry-over losses from 5 to 8 years.
Social insurance premium shifted
The social security impact has been reduced for companies and employees due to the fact that the annual adjustment of the social security base has been postponed from April 1st to July 1st.
if you are active in public transport services, living services (incl. cultural/sports services, education and medical services, tourism/entertainment services, and accommodation services) and express delivery services you can apply for to be exempted from VAT as of January 1st onward.
If you wish to learn more about these measures or which measures are applicable in your locality, please contact Joost Vrancken Peeters at +31620210657 or email@example.com or Ye Yu at +31639267995 or firstname.lastname@example.org.