Recently, the Several Policy Measures of Guangdong Province to Support Stable Development of Small and Micro Enterprises (hereinafter referred to as the Measures) was issued, clearly indicating that a “list” shall be adopted to further sort out and reduce the charges related to enterprises, reduce labor cost and provide subsidy for one-year social insurance expenditure of enterprises signing labor contracts with a term of more than one year with fresh graduates and paying for social insurance in accordance with related regulations. The subsidy will be provided based on the actual number of the fresh graduates employed by the enterprises. The Measures will further stimulate the vigor for “entrepreneurship and innovation by all” and promote a sound and stable development of the small and micro enterprises in Guangdong.

 

It is proposed under the Measures that, the tax authorities shall follow the principle to “enable the enterprises to enjoy the benefit of the policies as much as they should” to put the national preferential tax policies into substantial practice for every related small and micro enterprise. Strict procedures should be followed to sort out administrative and institutional charges and governmental funds. Necessary charges should be managed based on list. Exemption of 32 administrative and institutional charges under the approval of the central government and exemption of seven charges under provincial approval should be carried out among the enterprises throughout the province. In addition, the municipal governments of Guangdong should be encouraged to promote the exemption of the charges mentioned above at their own level.

 

Source: excerpts from Nanfang Daily, August 6, 2015