Urban maintenance and construction tax
Urban land use tax
Stamp duty (excluding securities transaction stamp duty)
Farmland occupation tax
The “two fees” are:
Local education surcharges
In addition to tax reductions, the policy list outlines several fiscal measures to support small businesses in China, which include:
Extending the inclusive insurance policy for unemployment and stable work resumption for companies that do not have layoffs or reduce layoffs and increase the return ratio of MSMEs from 60 percent to a maximum of 90 percent.
Reducing the rent for MSMEs and individual industrial and commercial merchants located in medium or high-risk COVID-19 areas that rent state-owned property. These businesses can have their rent reduced for a period of six months in 2022. Businesses in other areas can have their rent reduced for three months in 2022. All localities are encouraged to coordinate funding to extend rent support to businesses that rent non-state-owned property.
Guiding banks to properly allocate the RMB 2.2 trillion of funds released by the two reductions in the required reserve ratio (RRR) in 2021.
Encouraging government financing guarantee agencies to provide financing and credit enhancement support for eligible catering and retail MSMEs, fulfilling their legal responsibilities for vicarious liability in a timely manner, and actively helping enterprises affected by the epidemic to renew their guarantees and loans.
Supporting qualified localities to inject capital into government financing guarantee agencies and provide financing guarantee fee subsidies.
Expanding the coverage of business interruption insurance for losses due to the pandemic, improving the efficiency of claims settlements.
Improving the degree of protection for catering enterprises. Encouraging qualified places to give premium subsidies.
Encouraging insurance agencies to optimize products and services, expand the coverage of business interruption insurance for losses due to the pandemic, improving the efficiency of claims settlement, and improving the degree of protection for catering enterprises. Encouraging qualified places to give premium subsidies.
Guiding financial institutions to reasonably reduce interest rates for newly issued loans.
Encouraging qualified tourism businesses to issue corporate credit bonds and expand diversified financing channels for tourism enterprises.
Increasing inclusive financial support for MSMEs with good development prospects engaged in travel, tourism, performing arts, and other fields.
Encouraging banking and financial institutions to provide small loans to individual industrial and commercial merchants, such as tourism-related start-ups, MSMEs, and themed homestays.
Continuation of central government subsidies for the purchase of eligible new energy buses.
Local governments can coordinate central-to-local transfer payments and local financial resources to support airlines and airports in implementing COVID-19 prevention and control measures.
Continuation of central government subsidies for qualified air routes and building security capabilities through the Civil Aviation Development Fund.
Continuation of subsidies for the operation and building security capabilities of small and medium-sized airports and affiliated airports through the Civil Aviation Development Fund
Providing discounts for civil aviation infrastructure loans, and providing investment subsidies for the construction of airports and air traffic control projects.
It is highly likely that we will see the roll-out of more supportive measures to increase support for MSMEs in other industries. The government is keen on cultivating new startups, particularly in the fields of technology and telecommunications, as MSMEs are a key driver of innovation and a large source of patent filings.
Although it is not explicitly stated in the policy list, it is possible that small and medium-sized foreign invested enterprises (FIEs) in services industries will also be eligible for the supportive measures described above.