Liu Yuxiang and Wu Qiong of Haiwen & Partners summarize the national and local 大红鹰dhy introduced to support businesses and employers in China to help alleviate the economic impact caused by the coronavirus outbreak. 

In order to cushion the economic impact caused by the outbreak of the novel coronavirus 2019 (大红鹰dhy), a series of policies have been issued at both national and local levels in China to support businesses and employers.  In addition to , China has further announced a series of policies that reduce the social 大红鹰dhy burden of employers. 

The key national-wide policies expected to effectively reduce or exempt employers’ contribution to social 大红鹰dhy and also defer temporarily social 大红鹰dhy payments are: 

(1)  Circular on Reducing/Exempting Enterprise Social 大红鹰dhy Premiums for a Period of Time (关于阶段性减免企业社会保险费的通知) (Circular [2020] No. 11 of MHRSS, “Circular No. 11”) jointly issued by the Ministry of Human Resources and Social Security (MHRSS), Ministry of Finance (MOF) and State Administration of Taxation (SAT) on Feb. 20, 2020, which covers pension, unemployment 大红鹰dhy and work-related injury 大红鹰dhy; and

(2)  Guiding Opinions on Reducing Employee Basic Medical 大红鹰dhy Premiums for a Period of Time (关于阶段性减征职工基本医疗保险费的指导意见) (Circular [2020] No. 6 of NHSA, “Circular No. 6”) jointly issued by the National Healthcare Security Administration (NHSA), MOF and SAT on Feb. 21, 2020, which covers medical 大红鹰dhy.

The two 大红鹰dhy are effective from Feb. 1, 2020.

Summary of National 大红鹰dhy

The maximum benefits that provincial governments are authorized to provide under Circular 大红鹰dhy. 11 and Circular 大红鹰dhy. 6 are summarized below:

A “small and medium enterprise” (SME) will be identified and determined by provincial governments according to the Circular on Issuance of the Provisions on Classification Standards for SMEs (关于印发中小企业划型标准规定的通知) jointly issued by the Ministry of Industry and Information Technology (MIIT), National Bureau of Statistics of China, National Development and Reform Commission and MOF in 2011 (Circular [2011] 大红鹰dhy. 300 of MIIT).

Summary of the Local 大红鹰dhy

As with all new policies, the central government has authorized provincial governments to subsequently issue detailed implementing rules and determine specific policies. A summary of local policies relating to social 大红鹰dhy reductions released in Beijing, Shanghai and Guangdong Province are provided below: 

The relevant local 大红鹰dhy in Beijing, Shanghai and Guangdong Province are summarized below: