Shanghai's support to the development of enterprises - 1

Policies and Measures of Shanghai to Prevent and Control the Novel Coronavirus Pneumonia (NCP) and to Support and Serve the Stable and Healthy Development of Enterprises (Abstract)

1

Provide full support for enterprises to fight against the NCP

01

Increase fiscal support for key enterprises involved in the prevention and control work.

The enterprises producing key supplies for the NCP prevention and control are given one-time deduction and full refund of incremental VAT credits prior to income tax deduction for purchasing new equipment to expand production capacity according to national policies. Taxpayers are exempted from VAT on income from transportation of key supplies for the NCP prevention and control, provision of public transportation services and living services, and provision of courier delivery services for essential living supplies to residents. Registration fees are waived for the drugs and medical devices used for NCP prevention and control. Civil Aviation Development Funds payable by civil aviation enterprises are exempted. The policy-related losses, which occur when the production cost is higher than the actual selling price, of enterprises expropriated by the government to produce designated key anti-epidemic materials will be fully covered by the subsidies of municipal finance authorities. Enterprises will be exempted from the increased tax due to the domestic selling of key anti-epidemic materials which were originally contracted for export after expropriated by the government. The enterprises and individuals that do not hesitate to undertake their social responsibilities in the NCP prevention and control battle will be rewarded.

02

Strengthen special financial credit support for key enterprises involved in the NCP prevention and control.

Branches of developmental, policy-oriented, state-owned large commercial banks in Shanghai and local corporate banks are encouraged to actively implement the special re-loan policies of the People's Bank of China. Prime-rated loans are granted to key enterprises, including small and micro enterprises for the production, transportation, and sales of key materials for the NCP prevention and control and daily necessities; moreover, 50% interest discount is given by the finance authorities to ensure that the enterprise loan interest rate is below 1.6%. Financial institutions in Shanghai are encouraged to raise funds for areas related to the NCP prevention and control by issuing financial bonds, special-purpose bonds, etc.

03

Broaden direct financing channels for enterprises involved in the NCP prevention and control.

The roles of the financial market of Shanghai will be given into full play in strengthening services for the NCP prevention and control-related enterprises by supporting their stock issuance, listing, refinancing, mergers and acquisitions, issuance of bonds, asset-backed securities, etc. Technological innovation companies related to the NCP prevention and control are encouraged and supported to list on the Sci-Tech innovation board of the Shanghai Stock Exchange. Venture capital and equity investment institutions are encouraged to guide social capital to invest in enterprises relating to R&D and production of medical equipment, vaccines and drugs.

04

Bring into better play the safeguard function of insurance.

In response to the import demand of enterprises in urgent shortage of medical supplies and NCP prevention and control supplies, Shanghai Branch of Sinosureis encouraged to actively carry out import advance payment insurance. For customers who have been affected by and suffered losses in the NCP spread, their insurance claims will be settled adequately and instantly upon confirmation. Insurance institutions are encouraged to provide free accident insurance and term insurance for medical personnel and NCP prevention workers stay in Shanghai to battle the NCP and rushing to the rescue in Hubei. Accident insurance and disease insurance will be extended to cover the NCP.

05

Support enterprises producing and selling key NCP prevention & control materials to expand production capacity and increase imports.

Subsidies for urgent technical transformation are provided to enterprises expropriated by the government. The emergency technical transformation projects implemented by expropriated enterprises for producing NCP prevention & control materials will be given a financial subsidy of 50% - 80% of the total investment of the project after confirmation. The investments of enterprises expropriated by the government aimed to equip themselves in producing the specific NCP prevention materials designated by the government can be fully subsidized at most. After the NCP prevention and control work ends, if it is really difficult for an enterprise to continue to sell the residual materials produced due to government expropriation or designated production, the government will them clear inventories by purchasing them for material reserves or underwriting; the remaining imported medical materials after overall allocation, if any, shall be included in the municipal-level material reserve in accordance with the prescribed procedures; those imported civilian prevention and control materials of specified procurement types and quantities, which are really difficult for enterprises to continues to sell, shall be incorporated into municipal-level reserve commodities in accordance with the prescribed procedures.

06

Offer tax preference for imported NCP prevention & control materials.

According to national policies, imported materials donated for NCP prevention and control are exempted from import duties, import VAT and consumption tax; materials imported and directly used by the municipal health authorities for NCP prevention and control are exempted from customs duties; a refund will be made on the exempted tax already collected.

07

Establish green channels for rapid clearance of imported NCP prevention materials.

Special windows and green channels for the imported NCP prevention and control materials have been established, and 7*24-hour customs clearance has been achieved in the main import ports. The two-step declaration, advance declaration and other operating modes are comprehensively adopted to carry out priority inspection of the NCP prevention and control materials that entail inspection so that these materials can be inspected timely upon arrival and released instantly after inspection. Imported duty-free disease prevention materials can be registered and released while relevant certificates can be provided later.

08

Support the development of innovative products for NCP prevention & control.

The R&D and production of innovative products for NCP diagnosis and treatment are being organized and implemented in Shanghai; supports will be provided through channels such as special funds for strategic emerging industries, industrial transformation and upgrading, and scientific and technological innovation plans to facilitate rapid formation of effective production capacity for NCP prevention and control innovative products and their application.

Source: 上海市人民政府外事办公室

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