The "Several Policies to Promote the Recovery and Development of Service Industries in Difficulty" has been formulated in accordance with the deployment and decision-making of the Central Committee of the Communist Party of China and the State Council. To assist service industries in difficulty to overcome difficulties and recover development, based on the implementation of already issued policy measures, and with the approval of the State Council, the following assistance and relief policies for enterprises are now proposed.

General Relief Measures for Service Industries

1. Extension of Value-Added Tax (VAT) Additional Deduction Policy: In 2022, for taxpayers in production and living service sectors, the current deductible input VAT can continue to be additionally deducted at 10% and 15%, respectively.
2. Expansion of the Scope of 'Six Taxes and Two Fees': In 2022, the scope of the reduction of 'six taxes and two fees' (resource tax, urban maintenance and construction tax, property tax, town land use tax, stamp duty (excluding securities transaction stamp duty), arable land occupation tax, educational surcharge, and local educational surcharge) by provincial governments within a 50% tax rate range will be extended to small and micro-profit enterprises and individual businesses. Eligible service industry entities can benefit.
3. Encouragement for Property Tax and Town Land Use Tax Reductions: Local authorities are encouraged to grant tax reductions for entities experiencing genuine difficulties in paying property tax and town land use tax in 2022. Eligible service industry entities can benefit.
4. Increased Deductions for Equipment and Instruments Purchased by Small and Micro Enterprises: In 2022, for new equipment and instruments purchased by small and micro enterprises with a unit value exceeding 5 million yuan, those with a depreciation period of 3 years may opt for a one-time tax deduction, while those with depreciation periods of 4, 5, or 10 years may deduct half. Enterprises can enjoy this benefit quarterly, and any shortfall in deductions can be carried forward for 5 tax years. Eligible service industry entities can benefit.
5. Continuation of Stage-wise Reduction in Unemployment Insurance and Work Injury Insurance Rates: In 2022, the stage-wise reduction in unemployment insurance and work injury insurance rates will continue. Enterprises that do not lay off or lay off few employees will continue to receive universal unemployment insurance stabilization refunds, with the refund ratio for small and micro enterprises increasing from 60% to up to 90% in 2022. Eligible service industry entities can benefit.
6. Rent Reduction for Service Industry Small and Micro Enterprises and Individual Businesses Leasing State-Owned Properties: In 2022, if located in counties designated as medium-to-high-risk areas due to the pandemic, these entities can receive a rent reduction of 6 months; otherwise, a 3-month reduction applies. Local authorities can allocate funds to assist non-state-owned property lessees. Non-state-owned property lessors are encouraged to reasonably share the losses caused by the pandemic. Lessors who reduce rents may be granted property tax and town land use tax reductions. Any impact on the performance of state-owned enterprises due to rent reductions will be considered in evaluations.
7. Guidance for Banks to Utilize Funds Released by Twice Lowering Reserve Requirement Ratios in 2021: In 2022, banks are encouraged to use the 2.2 trillion yuan released by twice lowering the reserve requirement ratios to support small and micro enterprises and private enterprises in the service sector.
8. Enhanced Support for Inclusive Micro and Small Enterprises: For every 1% increase in the balance of inclusive micro and small enterprise loans by local legal person banks, an incentive fund will be provided. The 400 billion yuan rediscount quota will be used to guide financial institutions to increase support for difficult industries, especially the service sector. Financial institutions are encouraged to handle renewal loans normally for eligible service industry entities without blindly withholding, withdrawing, cutting, or compressing loans, maintaining reasonable liquidity.
9. Continued Push for Financial System Fee and Interest Rate Reductions: In 2022, the financial system will continue to reduce fees and interest rates, implementing the downward trend in the Loan Prime Rate (LPR) and the reduction in rediscount rates for agriculture and small businesses, further lowering actual loan interest rates. Banks are urged to reduce account service fees, RMB transfer and remittance fees, and credit card swipe fees to alleviate operating cost pressures on service industry small and micro enterprises and individual businesses.
10. Measures to Stop Arbitrary Charges, Levies, and Fines: Effective measures will be taken to stop arbitrary charges, levies, and fines, and a special action plan will be studied and implemented. A collaborative governance and joint punishment mechanism for arbitrary charges will be improved to prevent the effects of assistance and relief policies for service industries from being offset by such practices. Service industry associations are encouraged to adopt multiple means to promote sales.

Special Relief Measures for Catering Industry

11. Free Regular Nucleic Acid Testing for Employees: Local authorities are encouraged to provide free regular nucleic acid testing for catering industry employees, with subsidies for enterprise epidemic prevention and disinfection expenses. In 2022, the subsidy for regular nucleic acid testing for catering industry employees should be no less than 50%.
12. Reduction of Merchant Service Fees by Internet Platforms: Internet platforms are guided to further reduce merchant service fees for the catering industry, lowering operating costs. Stage-wise service fee discounts are offered to catering enterprises in medium-to-high-risk areas.
13. Stage-wise Implementation of Deferred Unemployment and Work Injury Insurance Payments: Provinces with surplus unemployment and work injury insurance funds can implement deferred payments for the catering industry, with specific methods determined by provincial governments. Eligible catering enterprises can apply for deferrals approved by local governments, with a maximum duration of one year and no late fees.
14. Financial Institutions to Enhance Information Sharing and Credit Loans: Financial institutions are encouraged to strengthen information sharing with catering industry authorities, using data such as transaction streams and lease agreements to improve risk pricing and issue more credit loans. Qualified catering enterprises are encouraged to issue corporate credit bonds to diversify financing channels.
15. Governmental Financing Guarantee Institutions to Provide Financing Guarantees: Governmental financing guarantee institutions are encouraged to provide financing guarantees for qualified catering industry small and micro enterprises, fulfilling their indemnification responsibilities, and helping affected enterprises renew guarantees and loans. Local authorities are encouraged to inject capital into governmental financing guarantee institutions and provide financing guarantee fee subsidies.
16. Insurance Institutions to Optimize Products and Services: Insurance institutions are encouraged to expand coverage for business interruption insurance due to the pandemic, improve claim processing efficiency, and increase protection for catering enterprises. Local authorities are encouraged to provide premium subsidies.
17. Encouragement for Catering Enterprises to Provide Meal Services for the Elderly: Local authorities are encouraged to provide appropriate support for meal services for the elderly, without forcing catering enterprises to offer accompanying preferential measures.

Special Relief Measures for Retail Industry

18. Free Regular Nucleic Acid Testing for Employees: Local authorities are encouraged to provide free regular nucleic acid testing for retail industry employees, with subsidies for enterprise epidemic prevention and disinfection expenses. In 2022, the subsidy for regular nucleic acid testing for retail industry employees should be no less than 50%.
19. Support for County-level Commercial System Construction: Central government finances will support the construction of county-level commercial systems through the Service Industry Development Fund, enhancing the supply chain and logistics distribution network for agricultural products.
20. Support for Agricultural Product Supply Chain System Construction: Central government finances will continue to support 10 provinces (autonomous regions, municipalities) in strengthening the agricultural product supply chain system and improving the backbone network for agricultural product circulation.
21. Stage-wise Implementation of Deferred Unemployment and Work Injury Insurance Payments: Provinces with surplus unemployment and work injury insurance funds can implement deferred payments for the retail industry, with specific methods determined by provincial governments. Eligible retail enterprises can apply for deferrals approved by local governments, with a maximum duration of one year and no late fees.
22. Credit Support and Interest Rate Reductions: Banking financial institutions are encouraged to increase credit support for key enterprises recommended by commerce authorities, reducing loan interest rates and providing loan interest subsidies where possible. Information sharing between financial institutions and retail industry authorities is enhanced to improve risk pricing and issue more credit loans. Qualified retail enterprises are encouraged to issue corporate credit bonds to diversify financing channels.
23. Governmental Financing Guarantee Institutions to Provide Financing Guarantees: Governmental financing guarantee institutions are encouraged to provide financing guarantees for qualified retail industry small and micro enterprises, fulfilling their indemnification responsibilities, and helping affected enterprises renew guarantees and loans. Local authorities are encouraged to inject capital into governmental financing guarantee institutions and provide financing guarantee fee subsidies.

Special Relief Measures for Tourism Industry

24. Temporary Refund of Tourism Service Quality Deposit: In 2022, the temporary refund policy for tourism service quality deposits will continue, maintaining an 80% refund ratio for eligible travel agencies, with encouragement for higher refund ratios. The pilot program for insurance to replace the deposit will be accelerated, expanding the pilot scope.
25. Stage-wise Implementation of Deferred Unemployment and Work Injury Insurance Payments: Provinces with surplus unemployment and work injury insurance funds can implement deferred payments for the tourism industry, with specific methods determined by provincial governments. Eligible tourism enterprises can apply for deferrals approved by local governments, with a maximum duration of one year and no late fees.
26. Strengthened Bank-Enterprise Cooperation: A key tourism enterprise project financing demand database will be established, guiding financial institutions to increase credit support for eligible and promising A-level tourist attractions, resorts, rural tourism operators, star-rated hotels, and travel agencies.
27. Strict Implementation of Expenditure Limits for Government Procurement: When procuring accommodation, meeting, and catering services, strict adherence to expenditure limits is required, without setting barriers based on star ratings or ownership.
28. Encouragement for Government Agencies to Entrust Union Activities to Travel Agencies: Government agencies are encouraged to entrust union activities, exhibitions, and other events to travel agencies, specifying service content and standards, managing funds, and making timely payments.
29. Increased Effective Credit Supply for the Tourism Industry: Financial institutions are encouraged to increase effective credit supply for the tourism industry, establishing a key enterprise financing risk prevention mechanism. New loan interest rates will be reasonably reduced, and financial institutions will proactively reduce interest rates for affected tourism enterprises. Qualified tourism enterprises are encouraged to issue corporate credit bonds to diversify financing channels.
30. Increased Support for Promising Small and Micro Enterprises: Increased support for promising small and micro enterprises in the travel agency, tourism performance, and other sectors. The role of cultural and tourism financial service centers will be strengthened, and a financing demand database for small and micro tourism enterprises will be established. Banking financial institutions are encouraged to provide small loans to tourism-related startups, small and micro enterprises, and theme bed-and-breakfasts.

Special Relief Measures for Road, Waterway, and Railway Transportation Industries

31. Suspension of Prepayment of VAT for Railway Transport Enterprises: In 2022, railway transport enterprises will be exempt from prepaying VAT for one year.
32. Exemption of VAT for Public Transport Services: In 2022, VAT will be exempted for public transport services such as ferry, bus, subway, light rail, taxi, long-distance passenger transport, and shuttle buses.
33. Subsidies for Purchases of New Energy Buses: In 2022, central government finances will continue to provide subsidies for purchases of new energy buses according to established standards, with a slower reduction in subsidies compared to non-public sectors.
34. Increased Grants for Road, Waterway, and Comprehensive Freight Hub Projects: In 2022, central government finances will increase grants for road, waterway, and comprehensive freight hub projects, as well as for the construction of collection and distribution systems.
35. Funds for Difficulties in New Energy Taxi and Bus Operations: Local authorities are encouraged to arrange funds to support operations of new energy taxis and buses facing difficulties.
36. Innovation in Loan Products for Transportation Enterprises: Information sharing and dynamic monitoring data will be utilized to guide financial institutions to innovate loan products collateralized by movable assets such as vehicles and ships. Financial institutions are encouraged to increase financing support for transportation enterprises with higher credit ratings and significant roles in epidemic prevention and emergency transport, with reference to enterprise lists provided by relevant authorities. Qualified transportation enterprises are encouraged to issue corporate credit bonds to diversify financing channels.

Special Relief Measures for Civil Aviation Industry

37. Suspension of Prepayment of VAT for Civil Aviation Transport Enterprises: In 2022, civil aviation transport enterprises will be exempt from prepaying VAT for one year.
38. Support for Airlines and Airports in Epidemic Prevention: Local authorities can coordinate central transfers and local finances to support airlines and airports in epidemic prevention.
39. Increased Funding for Civil Aviation Infrastructure Construction: Central government finances will increase funding for civil aviation infrastructure construction, continuing to provide subsidies for eligible air routes and safety capability construction through the Civil Aviation Development Fund. Subsidies will also be provided for the operation and safety capability construction of medium and small airports and affiliated airports, as well as for civil aviation infrastructure loans and investment grants for airport and air traffic control projects. Local finances are encouraged to support related projects.
40. Negotiations to Cancel Sea Freight and Port Fees in Aviation Fuel Prices: Efforts will be made to negotiate with upstream enterprises to cancel sea freight (2 USD per barrel) and port fees (50 CNY per ton) included in aviation fuel prices.
41. Increased Credit Support for Hub Airports: Banking financial institutions are encouraged to increase credit support for hub airports. Qualified airlines are encouraged to issue corporate credit bonds to diversify financing channels. A green channel will be established for issuing debt financing tools for severely affected airlines and civil aviation airports.

Precise Implementation of Epidemic Prevention Measures

42. Strict, Scientific, and Precise Epidemic Prevention Measures: Prevent both "relaxation of prevention" and "over-prevention" to effectively restore and maintain normal order in service industries. Establish precise monitoring, identification, isolation, and protection mechanisms, including:

• Precise Monitoring Mechanism: Use big data to establish databases for key personnel in restaurants, supermarkets, scenic spots, airports, ports, and cold chain transportation.
• Enhanced Precise Identification: Ensure rapid and thorough epidemiological investigations within the "golden 24 hours."
• Scientific Isolation: Accurately identify key and high-risk personnel, and implement centralized medical observation for close contacts and secondary contacts.
• Promotion of Precise Protection: Ensure staff in catering, retail, tourism, transportation, and civil aviation industries are vaccinated, with daily health monitoring and enhanced awareness of epidemic prevention for staff and the public.

43. Strict Adherence to the 'Five Nos' of the Joint Prevention and Control Mechanism of the State Council:

• Do not prohibit low-risk area residents from returning home.
• Do not arbitrarily expand the scope of medium-to-high-risk areas.
• Do not unnecessarily extend travel restrictions beyond medium-to-high-risk areas to entire cities.
• Do not impose unnecessary centralized quarantine or劝返 (persuade to return) measures on low-risk area residents.
• Do not arbitrarily extend centralized quarantine periods. Additionally, no additional epidemic prevention measures for service industries should be imposed beyond the requirements of the Joint Prevention and Control Mechanism of the State Council. If it is necessary to implement lockdowns, interruptions in public transportation, or strengthen epidemic prevention measures, such actions must be approved by the Joint Prevention and Control Mechanism of the State Council. Provincial governments must coordinate overall epidemic prevention measures and establish mechanisms to reflect, verify, and correct issues of excessive epidemic prevention measures in service industries.

Guarantee Measures

The National Development and Reform Commission (NDRC) must play a leading role, strengthen coordination, conduct situation analysis, and promote the issuance and implementation of relevant policies. All relevant departments of the State Council must fulfill their responsibilities, cooperate, and intensify policy promotion and implementation. Specific implementation methods should be promptly issued, and policy interpretations and solutions to implementation challenges should be provided. Local authorities should adapt to local conditions and the characteristics of service industries in difficulty, grasp the timing, degree, and effectiveness of policies, and ensure that policies are effectively communicated to market entities, supporting enterprise recovery and development. Relevant industry associations should act as bridges and links, guiding enterprises to fully utilize relief measures, conducting surveys, and promptly reflecting industry dynamics, difficulties, and policy implementation situations.