On February 7, the Shenzhen Municipal Government officially issued and implemented "Several Measures of Shenzhen to Cope with the Pneumonia Infected by novel coronavirus and Support Enterprises to Overcome Difficulties", which put forward 16 specific measures and aroused widespread concern. In order to facilitate the general public and enterprises to understand, master, and make good use of relevant measures, the Shenzhen Development and Reform Commission, in conjunction with relevant management departments, has conducted a detailed interpretation of the key points and highlights of this measure, in order to achieve faster and better implementation of the measures. The details are as follows:

What problems have the "Several Measures" mainly helped enterprises solve? What other considerations and plans are there in supporting the enterprise in the future?

The main purpose of introducing 16 precise and practical measures is to help enterprises alleviate the pressure of rigid expenditure during the epidemic, so that enterprises and employees who do not currently have the conditions to resume work can rest assured and focus on epidemic prevention and control work.

The "Several Measures" highlight the need for epidemic prevention and control, highlight the relief of difficulties for small and medium-sized enterprises, highlight the strengthening of urban operation security, and highlight the solidarity of the whole society. It is highly targeted, operable, sustainable, and covers a wide range of areas. Real money and silver help enterprises, with financial support of about 10 billion yuan, can reduce the immediate burden or expenditure of enterprises by over 60 billion yuan, and minimize the impact of the epidemic on enterprises to the greatest extent possible.

Next, the responsible units for various policies will accelerate the implementation of the "Several Measures" and fully assist enterprises in overcoming difficulties and overcoming difficulties together. After the epidemic stabilizes, Shenzhen will also introduce special support policies to help enterprises resume production, expand production, and develop healthily, to help enterprises achieve stability and progress.

What is the purpose of the "Several Measures" to support the technological transformation of epidemic prevention material production enterprises? How much funding is there? What conditions do I need to meet to apply for funding?

A: Since the outbreak of COVID-19, there has been a serious shortage of medical protective supplies (such as masks and protective clothing), disinfection supplies, some testing and medical equipment and other epidemic prevention materials. The main purpose of proposing this measure is to encourage relevant enterprises to quickly expand production capacity through expansion, conversion, assistance, and construction, effectively alleviating the shortage of epidemic prevention and control materials. Compared to the current technical reform support policy, this measure has unprecedented support, with the subsidy fund support ratio increasing from 10% to 50%, and the upper limit of subsidy funds for individual enterprises increasing from 10 million yuan to 20 million yuan. It is expected that relevant enterprises will receive a total of 300 to 500 million yuan in funding subsidies. This measure supports enterprises that produce epidemic prevention and control materials, and the subsidized equipment is only necessary for the production of epidemic prevention materials and is newly purchased or self-made equipment. Recently, the specific application guidelines will be published on the portal website of the Municipal Bureau of Industry and Information Technology. At the same time, in order to encourage relevant enterprises to expand production capacity, the city will establish a temporary collection and storage system for epidemic prevention materials. For surplus epidemic prevention materials produced during the epidemic period, the government can purchase and reserve them uniformly after the epidemic ends, allowing enterprises that produce at full capacity to have no worries about sales.

3. The "Several Measures" propose to implement a two-month financial subsidy of 0.5 yuan per square meter of managed area for property management service enterprises. How did you consider it? How many companies are expected to benefit?

Answer: In the current epidemic prevention and control work, property management and service enterprises in the city actively cooperate with streets and communities to carry out joint prevention and control work, making important contributions to grassroots frontline epidemic prevention and control. However, it has also led to an increase in operating expenses and additional expenses such as overtime pay for employees and procurement of epidemic prevention materials. Financial subsidies for property management service enterprises are mainly aimed at mobilizing their enthusiasm, reasonably compensating for additional expenses, and ensuring the continuous and in-depth promotion of epidemic prevention work. The scope of this financial subsidy basically includes all property service enterprises in our city that provide epidemic prevention and control services, and is expected to benefit more than 1400 enterprises. The total subsidy amount for two months is about 580 million yuan. The Municipal Housing and Construction Bureau will accelerate the issuance of unified implementation operation guidelines throughout the city, guiding property management service enterprises to apply for subsidies from the housing and construction departments in various districts according to the operation guidelines.

4. The "Several Measures" propose to exempt non-state-owned enterprises, scientific research institutions, medical institutions, and individual businesses that rent properties held by municipal and district state-owned enterprises from 2-month rent. What are the considerations?

Answer: This measure is based on the rent reduction measures for municipal state-owned enterprise properties released by the Municipal State owned Assets Supervision and Administration Commission on February 4th. It further expands the scope and objects of rent free properties, aiming to help private enterprises, foreign-funded enterprises, and individual businesses in our city reduce the impact of the epidemic to the greatest extent possible, and to encourage scientific research institutions and medical institutions to play a greater role in epidemic prevention and control work. Specifically, it is the "three unifications". In terms of rent-free properties, as long as they are held by municipal or district state-owned enterprises in Shenzhen, the rent-free policy will be implemented. The types of rent-free properties include factories, innovative industrial buildings, office buildings, agricultural wholesale markets, shops, warehousing and logistics facilities, and supporting service rooms. In terms of rent-free objects, as long as private enterprises, foreign-funded enterprises, and individual industrial and commercial households that have rented municipal or district state-owned enterprises in Shenzhen property, they all belong to rent-free objects.

At the same time, research institutions and medical institutions are not limited by the nature of the organization. Whether they are public institutions or state-owned enterprises, research institutions and medical institutions can enjoy rent free policies. In terms of rent free duration, all rent free objects will be rent free for 2 months. According to calculations, the rent free policy has benefited nearly 50000 commercial entities renting properties of municipal state-owned enterprises, with a rent free amount exceeding 1.1 billion yuan.

5. How is the "Several Measures" considered to exempt non-state-owned enterprises or households (individuals) who rent public rental housing or talent housing at the city and district levels from 2-month rent? What is the expected scale of rent reduction?

Answer: Housing rent is an important expenditure for enterprise production, operation, and family life. Due to the need for epidemic prevention and control, the city has delayed the resumption of work after holidays, posing challenges to the production and operation of some small and medium-sized enterprises, as well as difficulties for middle and low-income families. Our city will exempt non-state-owned enterprises or households (individuals) who rent public rental housing and talent housing at the city and district levels from 2-month rent, and work together with enterprises and the public to overcome difficulties. It is preliminarily estimated that this measure can reduce the rent amount for businesses and households (individuals) by approximately 280 million yuan. At present, the Municipal Housing Construction Bureau is urgently formulating a rent free implementation plan and will announce its implementation to the society in the near future.

6. The "Several Measures" have proposed a series of measures to benefit enterprises in terms of social security payment. What is the level of support and how are they handled in detail?

Answer: In order to fully leverage the synergistic effect of social insurance, ensure the normal enjoyment of benefits for insured individuals, and maximize assistance to enterprises affected by the epidemic to alleviate financial pressure, the "Several Measures" propose a policy of delaying the payment of enterprise social security premiums. It is expected to benefit over 700000 insured units in our city, delaying the payment of 38.1 billion yuan in social security fees for enterprises. At present, the Municipal Human Resources Security Bureau is stepping up the development of supporting implementation plans, in line with the principle of benefiting enterprises and the people, trying to simplify the application procedures for enterprises and implement the measures effectively.

In addition, to encourage enterprises to avoid layoffs and reduce layoffs, we have also introduced measures to refund social insurance premiums. Among them, for eligible enterprises, returning 50% of the previous year's unemployment insurance premium is expected to save 1.08 billion yuan for the enterprise, benefiting over 8 million employees; Returning 25% of social insurance premiums is expected to save approximately 4.68 billion yuan for the enterprise, benefiting over 1.7 million employees. At the same time, for the wages and benefits paid by the enterprise during the period when employees receive treatment or are under medical observation and isolation due to the epidemic, they can apply for employment stabilization subsidies. Employers can provide proof of the employees receiving treatment or being under medical observation and isolation, and apply to relevant institutions of the human resources security department for compensation.

7. The "Several Measures" propose that enterprises can apply to reduce the minimum contribution ratio of housing provident fund to 3% in accordance with the law, or apply for a deferred payment period of no more than 12 months. May I ask how this measure has changed compared to previous policies? What are the precautions for enterprises when applying?

Answer: Compared with previous policies and measures in our city, this measure has looser application conditions and a wider scope. There is no longer a requirement for the number of years for enterprises to make losses. Enterprises affected by the epidemic and facing difficulties in depositing housing provident fund can apply with the consent of the enterprise's employee congress or labor union. It is expected that this measure will involve approximately 4 billion yuan in housing provident fund contributions. When applying for an enterprise, it is necessary to submit a resolution from the enterprise employee representative assembly or the enterprise trade union, which should explain the difficulties faced by the unit and the situation where the employee has passed the review and voting. This policy can be applied for before the end of 2020, with a maximum of 12 months from the month of application onwards. There are over 350 branches in the city that can make appointments to handle this business.

8. The "Several Measures" propose to refund 6 months of urban sewage treatment fees to various enterprises affected by the epidemic. What are the specific considerations?

Answer: We have conducted a detailed study on the tax and fee costs of enterprises, striving for exemption if possible, return if possible, and deferment if possible. Urban sewage treatment fees are administrative fees levied by the government in accordance with relevant regulations to prevent and control water pollution, protect and improve the environment, and ensure drinking water safety. We will refund this fee in the form of a refund, which will directly reduce the burden on enterprises by a total of 300 million yuan.

What is the meaning of the "basic electricity bill" proposed to be reduced or exempted in the "Several Measures"? How much support is there and do companies need to proactively apply?

Answer: More than 90% of the transformers currently used by industrial and commercial enterprises in our city in the "last mile" of electricity are "special transformers" purchased and installed by enterprises themselves. In addition to paying the "electricity consumption fee" for actual electricity consumption, they also need to pay the "basic electricity fee" determined based on the transformer power, which is independent of the actual electricity consumption. At present, industrial and commercial enterprises are in a basic shutdown state during the outbreak of the epidemic, but the collection of "basic electricity fees" has not stopped. Reducing or exempting this part of electricity fees will to some extent alleviate the pressure on enterprise operations. According to the calculation of the power supply department, it is expected that the city will reduce the "basic electricity bill" by about 690 million yuan in February. The fee reduction will be coordinated between the power supply department and the municipal finance bureau, and paid through the municipal finance agency, without the need for enterprises to voluntarily declare. It should be emphasized that the property management departments of various industrial parks and commercial buildings shall not charge exempted "basic electricity bills" when collecting electricity bills for enterprises in the park (building) on behalf of them.

10. What are the conditions that need to be met for applying for extension of declaration and tax payment under the "Several Measures" and how to handle them? What are the considerations for implementing exemption from property tax and urban land use tax for difficult enterprises affected by the epidemic for three months?

Answer: The statutory declaration and tax payment deadline for February 2020 has been extended to February 24th. Taxpayers and withholding agents who are affected by the epidemic and still face difficulties in handling the extension of the declaration and tax payment deadline can apply for an extension of declaration to the competent tax authority in accordance with the relevant provisions of the Tax Collection Management Law and its implementation rules. Taxpayers can log in to the Electronic Taxation Bureau of Shenzhen Taxation Bureau to apply for extension of declaration. After completing the tax declaration, if there are indeed business difficulties and meet the conditions for deferred tax payment, taxpayers can apply to the tax authorities for an extension of tax payment before the deadline for tax declaration this month (i.e. before February 24th) in accordance with relevant laws and regulations. The application for deferred tax payment is expected to be processed online through the Electronic Taxation Bureau of Shenzhen Municipal Taxation Bureau starting from February 10th. In addition, to effectively reduce the tax burden on difficult enterprises affected by the epidemic, we will provide difficult exemptions and exemptions for property tax and urban land use tax. The collection period of real estate tax and urban land use tax is from October 1st to December 31st of the current year. If there are no special circumstances, taxpayers can apply in the fourth quarter of the current year.

11. The Several Measures have adjusted the benefit scope and the upper limit of the compensation ratio of the risk compensation fund pool for SME loans in our city. What are the benefits for enterprises?

Answer: This measure aims to increase the tolerance of banking institutions towards non-performing loans of small and medium-sized enterprises (including small and micro business owners and individual businesses) within a certain period of time, which is conducive to leveraging the scale of new credit and providing stronger financing support for small and micro enterprises. Specifically, in terms of the scope of benefits, we have expanded the coverage of existing policies from small and medium-sized enterprises to small and micro business owners and individual businesses, highlighting the inclusivity of policies. From the perspective of compensation ratio, the upper limit of risk compensation ratio for new loans from February 1 to June 30 this year will be increased from 50% to 80%, which will greatly reduce the risk of banks granting loans to small, medium-sized and micro enterprises, and further mobilize the enthusiasm of banks to lend. According to preliminary calculations, after expanding the scope of benefits and increasing the upper limit of compensation ratio, the compensation amount will exceed 1 billion yuan this year. Next, the Municipal Small and Medium sized Enterprise Service Bureau will strengthen the promotion and implementation of banks, provide clear expectations to banks, and provide compensation as soon as non-performing loans are determined, striving for better and faster policies to benefit the vast number of small and medium-sized enterprises, small and micro business owners, and individual businesses.

12. The "Several Measures" propose that during the epidemic prevention and control period, the guarantee fees of policy financing guarantee institutions will be reduced by 30%. May I ask how the specific reduction is carried out?

Answer: Policy based financing guarantee institutions refer to two municipal state-owned guarantee enterprises, Shenzhen High tech Investment and Financing Guarantee Group and Shenzhen Guarantee Group. This measure aims to effectively reduce the financing costs of guarantee enterprises and ensure that the guarantee fees of all existing and newly added guarantee enterprises are reduced by 30%.

Specifically, Shenzhen High tech Investment and Financing Guarantee Group will provide a maximum guarantee amount of 30 million yuan to biopharmaceuticals, medical devices and other enterprises that have made contributions to the epidemic, with a 30% reduction in guarantee fees and other related expenses; For small and micro enterprises that encounter temporary difficulties in operation, the collection of guarantee fees can be postponed or waived. Shenzhen Guarantee Group will fully expand the scope of premium discounts to all types of small and micro enterprises and "agriculture, rural areas, and farmers" enterprises. At the same time, it will make every effort to help small and micro enterprises enjoy government interest subsidy policies, and actively assist small and micro enterprises that comply with the technology and finance policies of various districts in Shenzhen in applying for guarantee fee subsidies, achieving zero guarantee rates. During the epidemic prevention and control period, two municipal state-owned guarantee enterprises are expected to waive guarantee fees by a total of approximately 100 million yuan.

13. The "Several Measures" propose that government financing re guarantee institutions are exempt from re guarantee fees throughout the year, and the risk sharing ratio of the financing guarantee fund's re guarantee is increased from a maximum of 50% to 60%. Encouraging "take responsibility as soon as you see the loan" feels very professional. How do you understand the benefits for these enterprises?

Answer: Government financing re guarantee institutions are not for profit, and their main function is to share risks for guarantee institutions and alleviate the difficulty of enterprise financing. Based on reducing the financing costs of enterprises, we propose to waive the payment of re guarantee premiums for the entire year. Enterprises do not need to pay re guarantee premiums when applying for financing guarantees from guarantee institutions. After the outbreak of the epidemic, some enterprises have been affected to varying degrees in their operations. Some enterprises that need guarantees cannot obtain bank loans due to not meeting the standards of existing guarantee institutions. In order to further support guarantee institutions in lowering the threshold of financing guarantee services, our city's financing guarantee fund has increased its share of loan guarantee projects for small and micro enterprises submitted by guarantee institutions from a maximum of 50% to 60%, which means that guarantee institutions and banks only need to share 40% of the risk, Encourage guarantee agencies to "take responsibility as soon as they see a loan" for such enterprises and help them overcome difficulties.

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