October 24 2022

Shanghai Rolls out 22 Measures to Help Industries, Enhance Market Entities and Stabilize Growth

Source: Announcement of the State Taxation Administration

The Shanghai Municipal People's Government released on September 28, 2022 the Several Policy Measures of Shanghai Municipality for Helping Industries, Enhancing Market Entities and Stabilizing Growth, stepping up support in incentives, subsidies and credit support to beleaguered sectors, small businesses and major industries.

While continuing the subsidies and tax cuts offered to culture, tourism, sports, exhibition, aviation, life services and other sectors that have been in trouble due to the COVID-19 pandemic, Shanghai also strengthened support to micro and small enterprises, small and middle enterprises focusing on specialized areas or with distinctive advantages in select areas, high-tech companies, and high-quality players. According to the document, the government said it would also vigorously promote consumption of big-ticket items, such as housing and automobiles and build more affordable housing for rental, and raised the limit of funding support for major technical upgrading in key industries to 100 million yuan and lowered medical insurance contributions made by employers by 0.5 percentage points. In addition, in the document the government also explored the possibility of optimizing risk compensation for loans, as well as interest or fee discount.

In the document, the government also stressed the need to ensure prompt implementation of preferential taxation policies. Tax rebates for exports should not take more than five business days to process. Specifically, it should take exporters not more than three business days to go through procedures for tax rebates, and VAT credits shall be immediately refunded to manufacturers upon application and arrive at the recipient's account within two business days.