Temporary Reductions and Exemptions on Social Insurance Contributions Offered to Businesses
26 February 2020
Starting from February, all Chinese provinces (except Hubei), autonomous regions and municipalities, and the Xinjiang Production and Construction Corps, may exempt medium-, small-, and micro-sized enterprises from certain social insurance contributions for a period of up to five months. The exemptions are to be made based on the actual Covid-19 situation and the ability of each authority’s social insurance fund to bear the premium cut. Premiums payable by large enterprises and other insured entities (excluding government organs and public institutions) may be halved for a period of up to three months. The three types of social insurance that qualify are: basic endowment insurance, unemployment insurance, and work-related injury insurance.
The measures were introduced to alleviate the difficulties being faced by enterprises, promote the orderly resumption of production, and support the stabilisation and expansion of employment during the period of the epidemic.
Full details can be found in the Circular Concerning the Temporary Reduction and Exemption of Social Insurance Premium Contributions of Enterprises (Ren She Bu Fa No. 11 ), issued jointly by the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration.
Source: State Taxation Administration
- Mainland China