Guangzhou reduces corporate burden by over 30 billion yuan to offset COVID impact

To alleviate difficulties of enterprises brought by this round of COVID-19 in Guangzhou, the city launched 9 measures, including to provide financial support and tax exemptions to reduce corporate burden by over 30 billion yuan.

The measures are to help enterprises affected by the epidemic to solve difficulties encountered in production and operation, said Chen Xu, deputy director of the Development and Reform Commission of Guangzhou.

For instance, it encourages institutions to provide financial support for industries that are greatly affected by the epidemic, or small and medium-size enterprise (SMEs) in medium-risk, high-risk and closed-off management areas of the COVID-19.

Also, SMEs are allowed to apply for a delayed repayment of capital and interest, loan companies are encouraged to lower their loan interest rate by 5-10%.

The measures also alleviate burden on taxes, social security and rent. In terms of taxation, affected taxpayers and withholding agents can apply for a deferred tax declaration.

For tenants who rent municipal, state-owned non-residential properties in medium, high-risk and closed-management areas, they will be exempt from a two-month property rent; for renting of non-residential properties in other areas of the city, one-month property rent will be exempted.

What’s more, the exhibition industry can enjoy preferential policies since many exhibitions have been postponed due to the epidemic prevention and control. For the postponed exhibitions that will be held in Guangzhou’s professional exhibition halls this year, they can get a financial subsidy at 10% of the venue rental cost (to a maximum of 1 million yuan for each exhibition).

Author |Will

Editor |Wing, Keane, Jerry