Hainan Official Measures to Ease the Financial Burden on Businesses during the COVID-19 Crisis
Below, in italics, is a machine translation for your reference of measures recently announced by Hainan Provincial government designed to alleviate the financial stresses being caused by the effects on commerce of the COVID-19 outbreak. To view the original Chinese, which is authoritative, please click this link:
It is of considerable note that the following provisions currently apply ONLY to certain defined elements of the tourism industry. HCham would like your feedback on this, both from our members and readers in the tourism-related businesses specifically described in the text and particularly from our members and readers in other COVID-19 affected industries. Please provide this feedback by email to firstname.lastname@example.org or directly to our team members via WeChat or in our information groups.
Machine translation follows.
Hainan province should cope with the epidemic of new coronavirus pneumonia
Six measures to support Hainan tourism enterprises to overcome difficulties
In order to thoroughly implement the spirit of the important instructions of general secretary Xi Jinping on resolutely fighting the epidemic prevention and control of new coronavirus pneumonia, we will fully implement the decisions and arrangements of the CPC Central Committee and the State Council on epidemic prevention and control, and support our province’s tourism enterprises to actively cope with the difficulties of production and operation, and promote the healthy and orderly development of tourism in our province, and formulate the following measures.
1. Implementation of aid and stabilization post
Tourism enterprises that are affected by the epidemic situation and have difficulties in production and operation may, through consultation with their employees, take measures to stabilize their jobs, such as adjusting salaries, rotating posts, shortening working hours and waiting for posts, and try not to reduce or reduce the number of layoffs. For the insured tourism enterprises that do not cut or reduce the number of staff, 50% of the total unemployment insurance premium actually paid by the units and their employees in the previous year shall be returned. For the insured tourism enterprises that face temporary production and operation difficulties and are expected to recover, insist on no or less layoffs, the return standard shall be determined according to the per capita unemployment insurance benefits and the number of insured employees in the last month of the whole province for six months. (responsible units: Provincial Department of human resources and social security, Provincial Department of finance, Provincial Department of tourism, culture, radio, television and sports, and Provincial Human Resources Development Bureau)
2. Extend the period of handling social security business
During the period from January 2020 to the month when the epidemic is terminated, the period of insurance registration, payment base declaration, insurance premium payment and other business processing will be extended to three months after the end of the epidemic. If the relevant business is handled within 3 months after the end of the epidemic, the record of the personal rights and interests of the insured will not be affected, and no overdue fine will be charged. In 2020, the time limit for the flexible employees of relevant enterprises to pay social insurance premiums will be correspondingly relaxed. For the tourism enterprises that fail to handle the insurance payment in time, it is allowed to handle the payment business within three months after the epidemic situation is lifted. (responsible units: Provincial Department of human resources and social security, Provincial Department of finance, Provincial Department of tourism, culture, radio, television and sports, provincial taxation bureau, Provincial Medical Security Bureau, provincial social insurance service center, Provincial Human Resources Development Bureau)
3. Rent reduction
The rent for the first quarter of 2020 will be reduced or exempted for the tourism enterprises that rent the state-owned (including collective) asset type business houses; for the leasing of other business houses, the local government will encourage the owners (landlords) to reduce or exempt the rent for the tourism enterprises, which will be solved by both parties through negotiation. (responsible units: provincial SASAC, Provincial Department of tourism, culture, radio, television and sports, municipal and county governments)
4. Reduce operating costs
For the electricity, water and gas required by the production and operation of tourism enterprises, after being confirmed by the relevant competent authorities, the payment can be postponed for three months from the date of issuance of this notice, and the period of suspension shall not exceed June 30, 2020. During the period of suspension, the measures of “non-stop payment of arrears” shall be implemented, and the overdue fine shall be exempted. The cable TV charges of hotels are charged at 50%, and the IPTV business charges of hotels can be postponed. During the period of deferment, there will be no downtime. Temporarily return the quality deposit of the travel agency in full for daily operation, and require the corresponding travel agency to return the deposit of this temporary return in full before February 5, 2022. (responsible units: Provincial Development and Reform Commission, Provincial Department of tourism, culture, radio, television and sports, Provincial Department of water affairs, Hainan power grid company, Hainan Branch of China cable television network Co., Ltd.)
5. Deduction and postponement of relevant taxes
In the first quarter of 2020, the real estate tax and urban land use tax that should be paid by tourism enterprises that are affected by the epidemic and have difficulties in operation will be reduced. For the tourism enterprises that are difficult to declare due to the impact of the epidemic situation, the enterprises shall apply for an extension of the declaration according to law. For tourism enterprises that do have special difficulties and are unable to pay taxes on time, the enterprises shall apply for an extension of tax payment according to law. (responsible unit: provincial taxation bureau, Provincial Department of tourism, culture, radio, television and sports)
6. Strengthen financial support
For the new loans of tourism enterprises affected by the epidemic in 2020 (the renewal and extension of loans shall be deemed as new loans), the provincial finance shall give a discount interest of 30% of the basic loan interest rate on the date when the loan contract is signed, and the discount interest period shall not exceed 1 year, and the discount interest funds shall be arranged from the special funds for the development of key industries in the province. The government financing guarantee institutions of our province should give full play to the role of bridge, help tourism enterprises to connect with financial institutions, cancel the counter guarantee requirements and reduce the guarantee rate. For tourism enterprises that are really unable to repay, the government financing guarantee institutions at all levels that provide financing guarantee services for them should timely perform the compensatory obligations, appropriately extend the recovery time limit according to the impact of the epidemic situation, and meet the verification and cancellation requirements If conditions permit, the compensation losses shall be written off in accordance with the provisions. If it is difficult for a tourism enterprise seriously affected by the epidemic to repay its debts when due, the enterprise may apply for extension or renewal of the loan. Encourage banking institutions to support relevant tourism enterprises to overcome the impact of the epidemic disaster by appropriately reducing loan interest rates, improving loan renewal policy arrangements, increasing credit loans and medium and long-term loans. Tourism enterprises that are greatly affected by the epidemic situation and have prospects for development but have temporary difficulties in operation shall not be allowed to blindly withdraw, cut off or suppress loans. (responsible units: municipal and county governments, Provincial Department of finance, provincial local financial supervision bureau, Hainan Supervision Bureau of China Banking and Insurance Regulatory Commission, Haikou Central Branch of the people’s Bank of China, provincial development and Reform Commission, Provincial Department of human resources and social security, provincial SASAC, Provincial Department of Tourism, culture, radio, television and sports, and banking institutions)
The tourism enterprises referred to in this measure are five types of enterprises registered in Hainan, including travel agencies, scenic spots, hotels, Tourism Performing Arts and golf tourism. The implementation period of this measure is tentatively from the date of printing and issuing to June 30, 2020. The relevant supporting policies issued by the central government shall be implemented by our province. The governments of all cities and counties should take active and effective measures to support tourism enterprises to solve the problems according to the local conditions.