Guangdong Province, Working Plan for Reducing the Costs of Enterprises in the Real Economy

广东省降低实体经济企业成本工作方案

May 23, 2017 | BY

Susan Mok

Guangdong eases corporate operating cost burdens.

Clp Reference: 2100/17.02.24 Promulgated: 2017-02-24

Issued: February 24 2017

Main contents: Guangdong has proposed some measures to reduce the costs of enterprises:

(1) Comprehensively implementing the pilot project for switching from business tax to value-added tax and ensuring that the tax burden on all industries only decreases and does not increase (Item One).

(2) Actively applying government debt-converting bonds to reduce enterprise debt costs (Item 15).

(3) Exploring gradually reducing the percentage of enterprises' employee basic old-age insurance premiums payable by the entity to 14%, and maintaining the unemployment insurance premium rate at 1% (Item 25).

(4) Limiting the percentage paid into the housing reserve to a maximum of 12% (Item 26).

(5) Changing the current system of at least one revision of the minimum wage rate every two years to, in principle, at least one revision every three years (Item 27).

(6) Further reducing enterprises' energy and land costs (Section Seven).

(7) Reducing enterprises' logistics costs by a relatively large margin (Section Eight).

clp reference:2100/17.02.24/GD issued:2017-02-24

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