COVID China Business Tax Exemptions: Key Cities | INS Global
News / COVID Updates / COVID-19 China Business Tax Exemptions: Beijing, Shanghai, Shenzhen and Guangdong

https://ins-globalconsulting.com/news-post/coronavirus-government-updates-asia-pacific-april-2020/

INS Global

Author

Date

Share On :

Key Takeaways

The COVID-19 outbreak has effected many individuals and businesses across the world. China, the epicenter of the outbreak, is leading the way regarding recovery, after the virus. After nearly 2 months of lockdown, China is returning to normal. The government of the PRC has implemented the following measures to assist businesses and individuals, to recover from any losses and setbacks caused by the COVID-19 pandemic.

The regulations and measures differ in each jurisdiction.

Beijing coronavirus relief measures

Social Insurance

Large businesses: From February 2020 to April 2020 Payments to the 3 social insurances (basic pension, unemployment insurance and work-related injury) will be reduced by 50% for large enterprises, private non-enterprise units and social organizations. Small and medium sized businesses From February 2020 to June 2020 All payments from micro (individual, industrial or commercial households) and medium sized enterprises, to the 3 social insurances (basic pension, unemployment insurance and work-related injury) will also be reduced by 50%. All enterprises that meet the above stated requirements do not need to submit an application.

Medical Insurance

For all size businesses and units From February 2020 to June 2020 The payment of basic medical insurance will be reduced from 10% to 5.4%. Childbirth insurance will now also form part of medical insurance which will be reduced from 0.8% to 0%. During the period of reduction, the insured person’s benefits will not be affected.

Contribution

Pension: 8% Unemployment insurance: 0.40% Work-related injury: 0.20% Medical insurance (incl. birth and basic medical): 5.40% Total contribution from the enterprise: 14%

Shanghai coronavirus relief measures

Social Insurance

Large businesses: From February 2020 to June 2020 Payments from the 3 social insurances (basic pension, unemployment insurance and work-related injury) will be exempted for large enterprises (incl. private non-enterprise units and social organizations) as well as small (individual, industrial or commercial households) and medium sized businesses. Small and medium sized businesses From February 2020 to June 2020 All payments from micro (individual, industrial or commercial households) and medium sized enterprises to the 3 social insurances (basic pension, unemployment insurance and work-related injury) will be exempted.

Medical Insurance

For all size businesses and units From February 2020 to June 2020 The payment of basic medical insurance by an enterprise, will be adjusted to 5.25%. During the period of reduction, the insured person’s benefits will not be affected. Childbirth insurance will no longer form part of social insurance, it will instead fall under medical insurance.

Contribution

Pension: 0% Unemployment insurance: 0% Work-injury: 0% Medical (incl. birth and basic medical): 5.25% Total contribution from the enterprise: 5.25%

Shenzhen coronavirus relief measures

Social Insurance

Large businesses: From February 2020 to April 2020 Payments made by enterprises to the 3 social insurances (basic pension, work-related injury and unemployment insurance) will be reduced by half for large enterprises, private non-enterprise units and social organizations (excluding government institutions). Small and medium sized businesses From February 2020 to June 2020 Payments made from micro and medium sized enterprises to the 3 social insurances will be exempt for this period.

Medical Insurance

For all size businesses and units From February 2020 to June 2020 The payments of basic medical insurance which is to be paid by an enterprise shall be reduced from 5.2% to 3%. The contribution for childbirth insurance will now be a part of medical insurance and it remains the same at 0.45%.

Contribution

Pension: 0% Unemployment insurance: 0% Work-injury: 0% Medical: Basic medical 3% Birth 0.45% Total contribution from the enterprise: 3.45%

Guangdong (excl. Shenzhen) relief measures

Social security Large businesses: From February 2020 to April 2020 Payments to the 3 social insurances, namely unemployment insurance work-related injury and basic pension, will be reduced by half for large enterprises, private non-enterprise units and social organizations. Small and medium sized businesses From February 2020 to June 2020 All payments from micro (individual, industrial or commercial households) and medium sized enterprises to the 3 social insurances (basic pension, unemployment insurance and work-related injury) will be exempted.

Medical Insurance

For all size businesses and units From February 2020 to June 2020 The basic medical insurance payment by enterprises will be reduced, for this period, from 5.5% to 3.5%. The contribution for childbirth insurance remains the same at 0.85%, however it will now fall under medical insurance. The supplementary medical insurance payment will remain the same, which is currently set at 24.23 RMB per month.

Contribution

Pension: 0% Unemployment insurance: 0% Work-injury: 0% Medical: Basic medical 3.5% Birth 0.85% Total contribution from the enterprise:  4.35%

Share on :

Related Posts

China has recently announced the removal of the PU letter, or entry invitation, for many foreigners looking for work or business visas in China.
Despite fears of Omicron and other strains, COVID-19 is generally seen as declining in terms of a global pandemic.
China's social security contributions policy has recently changed, affecting foreigners working in the region. Find out more about the changes and their impact.