(Photo:Nanfang Daily)

Guangdong released its plan of action including 32 measures to stimulate market entities’ vitality, for the purpose of sustaining the growth momentum of Guangdong’s industrial sector and keeping it running within an appropriate range.

The 32 measures include tax and fee reductions, financing promotion, investment boosts, enhancement of the resilience of the industrial chain and supply chain.

Tax and fee reduction for micro, small and medium-sized enterprises

Guangdong will prolong the tax deferral that has been offered to micro, small and medium-sized enterprises in the manufacturing industry since the fourth quarter last year by 6 months.

Meanwhile small and low-profit enterprises and individual industrial and commercial households can now enjoy a 50% tax cut on resource, urban maintenance and construction, property and so forth.

For micro and small enterprises renting state-owned houses, if they are located in areas that were once on the high-risk lists this year, they can enjoy a rent reduction for six months. And those in other areas for 3 months.

In addition, Guangdong will continue to periodically lower the rates of unemployment insurance and work-related injury insurance to ease the burden on social security for enterprises.

Rewards for new foreign-invested projects in manufacturing industry

According to the plan, Guangdong will refine its responsibility system for attracting both domestic and foreign capital and encourage investment in key industries.

Qualified new foreign-invested projects in the manufacturing industry will be rewarded financially and by other incentives.

In the meantime, to accelerate the construction of major projects and new infrastructure, Guangdong has also set specific goals of helping 8500 industrial enterprises carry out technological transformation and building over 30 thousand 5G base stations in this year.

Guangdong has recently released a series of incentive policies focusing on the service industry, industrial economy and pre-prepared food industry to better coordinate pandemic prevention and control with social and economic development.

In 2021, Guangdong’s industrial added value exceeded 4.5 trillion yuan, continuing to rank first in the country and accounting for 12% of the country’s total.

Author: Eastbrook

Editor: Wing, Nan, Will, Jerry