This time, 14 authorities led by the National Development and Reform Commission jointly released on February 18, 2022, the Several Policy Measures on Boosting the Recovery of Enterprises in Difficulty in the Service Sector (the "Policy"). In order to support and guarantee the economic development of small and medium-sized enterprises (SMEs) in the special period of the epidemic, the Policy clarifies the economic relief and support measures adopted by the Central Government to many industries affected during the epidemic.
Specifically, for the purpose of easing the situation that SMEs in the service sector not only face dismal business operation and production, and even suspension caused by the impact of the epidemic, but also have to face the plight of high operating costs such as venue rental, Article 6 of the Policy points out that certain SMEs and individual businesses in the service industry may enjoy the rent reduction or exemption preferential treatment offered by the Policy under certain conditions. Specifically, please refer to the detailed instructions in the following table:
Other non-State-owned Properties
在适用该政策时，应注意下列几点情形：In the application of this Policy, attention should be paid to the following:
The policy only applies to small and medium-sized enterprises (SMEs) and individual businesses. The latest standards for identification of SMEs are determined according to the Announcement on Further Implementation of "Six Taxes and Two Surcharges" Relief Policies for Small and Medium-sized Enterprises promulgated by the Ministry of Finance and State Administration of Taxation in 2022 and the STA Announcement on Issues Relating to Administration of Tax Collection for Further Implementation of "Six Taxes and Two Surcharges" Relief Policy for Micro and Small Enterprises promulgated by the State Administration of Taxation in the same year, the small and medium-sized enterprises shall refer to “enterprises engaging in industries which are not restricted or prohibited by the State and satisfying three conditions, namely, the annual taxable income amount does not exceed CNY3 million, the staff headcount does not exceed 300 and the total amount of assets does not exceed CNY50 million.”
This Policy provides that different rent reduction preferences are applicable to a subject for the lease of different properties in accordance with the Policy. Only the business operator that leases the state-owned properties may be subject to six months or three months' rent reduction or exemption according to the area where it is located; if it leases any other non-state-owned properties, the Policy encourages the lessor and the lessee to reasonably share the losses from the epidemic on the basis of equal negotiation. In particular, the "state-owned properties" refers to the properties of such administrative institutions as state-owned enterprises and government departments, colleges and universities and research institutes as well as the state-owned properties belonging to the Central Government, including the state-owned properties belonging to the relevant departments, central enterprises, central colleges and universities and research institutes.
In addition, property owners that have granted rent reduction or exemption may apply for tax reduction or exemption to local tax bureaus if they have genuine difficulties in paying property taxes and urban land use taxes in 2022. For example, in the Shanghai area, the Several Policies and Measures of Shanghai Municipality on All-out Efforts in Epidemic Prevention and Control to Support and Serve Enterprises for Their Stable and Sound Development also stipulates that where a taxpayer takes the initiative to reduce or exempt rents from tenants and has genuine difficulty in paying property tax and urban land use tax, it may log onto the Shanghai Electronic Taxation Bureau to file tax returns on its own and go through the relevant tax reduction and exemption formalities.
Finally, if a business operator that meets the requirements of this Policy intends to apply for a exemption of rent, it shall submit the application letter for reduction as shown below, If you need a customized rent exemption application letter based on your own situation, please contact our lawyer team in a timely manner.