Feb. 2025 - Shanghai continues to implement comprehensive measures to lighten the burden of enterprises!

Reductions on taxes and fees

Fully and sequentially implement the preferential policies of reducing taxes and fees, mainly including:

• VAT credit carry-forward refunds
• Weighted VAT Deduction for Advanced Manufacturing Enterprises
• Raising the Proportion of Weighted Pre-tax Deduction of the R & D Expenses
• 50% cost reduction on “Six taxes, Two fees” for small-scale VAT taxpayers, small-profit enterprises, and individual households

Reductions on enterprises’ labor costs

• Reduce the employers’ contribution to basic medical insurance for employees by 1%, from 10% to 9%, from January 2025 to December 2025
• The unemployment insurance rate will be maintained at 1%, with both the employer and employee contributing 0.5% each, continuing the reduced rate from January 2025 to December 2025
• Employers who meet certain conditions can apply for a refund of 50% of the social insurance premiums paid by the company during the maternity leave of female employees

Reductions on enterprises’ energy costs

Improve the pricing policy for non-grid direct power supply, introduce a reduction in the maximum price increase for off-grid direct power supply in industrial parks

Reductions on enterprises’ financing costs

Improve the loan renewal mechanism, this year will extend loan renewals to all Small and Micro Enterprises (“SMEs”)

Optimizing regulatory policies

In terms of optimizing regulatory policies, this year’s focus is on reducing unnecessary disruption to the companies

We will keep you posted if further preferential policies are published.

We remain available should you have any questions. Please do not hesitate to reach out to your Forvis Mazars point of contact.