YRSG [2022] No.15
Human resources and social security bureaus, development and reform bureaus (commissions) and finance bureaus of cities at or above the prefectural level, tax services of cities at or above the prefectural level and the Guangdong-Macao In-Depth Cooperation Zone in Hengqin of the State Taxation Administration, the Third Taxation Branch of Guangdong Provincial Tax Service, and the Administration of Social Insurance Fund of Guangdong Province,
In order to implement the deployment of the CPC Central Committee, the State Council and the CPC Guangdong Provincial Committee and the People’s Government of Guangdong Province on the package of policies and measures to stabilise the economy, and to focus on the protection of the market entities and the guarantee for employment and people’s livelihood, it is hereby announced the following specific matters on the implementation of the relevant policies stipulated in the Notice of the Ministry of Human Resources and Social Security, the National Development and Reform Commission, the Ministry of Finance, and the State Taxation Administration on Expanding the Scope of Implementation of the Policy of Phased Deferred Payment of Social Insurance Premiums and Other Issues (RSBF [2022] No.31) in Guangdong province.
I. Expand the scope of distressed industries in implementing the deferred payment policy
On the basis of the policy of implementing a phased deferment on the payment of basic pension insurance premiums, unemployment insurance premiums and work injury insurance premiums (hereinafter referred to as the three social insurance premiums) for employees in five extremely distressed industries, including catering, retail, tourism, civil aviation, and road, water and rail transport, the scope of implementation is further expanded to cover manufacturing enterprises whose industrial chains and supply chains have been greatly affected by the epidemic and whose production and operations are experiencing difficulties (see Appendix 1 for a list of specific industries). Distressed enterprises covered by the deferred payment policy can apply for the deferred payment of the three social insurance premiums, where the deferment period of pension insurance premiums is from June 2022 to December 2022, and the deferment period of work injury and unemployment insurance premiums is from June 2022 to March 2023. The originally defined period of deferring pension insurance payment for the five extremely distressed industries is extended accordingly until the end of December 2022.
Distressed enterprises may apply for the deferred payment of the three social insurance premiums in accordance with the provisions of the Notice of the General Office of the Ministry of Human Resources and Social Security and the General Office of the State Taxation Administration on the Phased Implementation of the Policy of Deferring the Payment of Enterprise Social Insurance Premiums in Extremely Distressed Industries Forwarded by the Human Resources and Social Security Department of Guangdong Province and the Guangdong Provincial Tax Service of the State Taxation Administration (YRSG [2022] No.11). The Commitment to Phased Deferred Payment of Social Insurance Premiums is adjusted to the Commitment to Phased Deferred Payment of Social Insurance Premiums for Enterprises in Distressed Industries (see in Appendix 2). The relevant treatment is processed in accordance with the Notice of the General Office of the Ministry of Human Resources and Social Security and the General Office of the State Taxation Administration on the Phased Implementation of the Policy of Deferring the Payment of Enterprise Social Insurance Premiums in Extremely Distressed Industries (RSTF [2022] No. 16).
II. Deferred payment policy for MSMEs that are greatly affected by the epidemic and have difficulties in production and operation
All micro-, small-, and medium-sized enterprises (MSMEs) and self-employed households insured as companies that have temporary difficulties in production and operation in areas severely affected by the epidemic may apply for a deferment of payment of the employer portion of the three social insurance premiums (see Appendix 3 for guidelines for the deferred payment for MSMEs and other employers in areas severely affected by the epidemic), with a deferment period until the end of December 2022, during which the late payment penalty will be waived. Public institutions and social organizations, foundations, social service agencies, law firms and accounting firms that participate in the basic pension insurance for employees shall be administered with reference to the relevant provisions of this policy.
Applications for deferred payment are subject to a joint review mechanism by human resources and social security departments and tax services of the counties (county-level cities or districts). The scope and conditions of the application shall be strictly controlled, and any arbitrary expansion of the scope or lowering of the standards shall be forbidden. The list of enterprises approved to defer payment and other information shall be reported to the provincial human resources and social security department and tax service on a monthly basis. The conditions are as follows:
1. The abovementioned areas severely affected by the epidemic refer to cities at or above the prefectural level with one or more medium- and high-risk areas for COVID-19 from January 1 to December 31, 2022.
2. The enterprise has temporary difficulties in production and operation or suffer losses (namely, with a loss in the year 2021 or the quarter prior to the application for deferment).
3. MSMEs are classified in accordance with the list determined by the relevant government departments pursuant to the Notice of the National Bureau of Statistics on the Issuance of Measures for the Classification of Statistically Micro-, Small-, Medium-, and Large-Sized Enterprises (2017) (GTZ [2017] No. 213).
III. Further stabilise jobs with unemployment insurance
Increase support for fee rebates to enterprises that stabilise employment. The rebate proportion for large enterprises in Guangdong Province is to increase from 30% to 50%, and the difference shall be made up in a timely manner for those who have previously been rebated at 30%. The implementation conditions and period are consistent with the Notice of the Human Resources and Social Security Department of Guangdong Province, the Department of Finance of Guangdong Province and the Guangdong Provincial Tax Service of the State Taxation Administration on the Work of Stabilising Jobs and Promoting Skills with Unemployment Insurance to Prevent Unemployment (YRSG [2022] No.9, hereinafter referred to as the YRSG [2022] No. 9).
Broaden the scope of recipients of the one-off vocational training subsidy. The subsidy is to extend from MSMEs in cities with medium- and high-risk areas to large enterprises, as well as enterprises in five sectors – catering, retail, tourism, civil aviation, and road, water and rail transport – in cities without medium- and high-risk areas. The implementation method and period are consistent with the YRSG [2022] No. 9.
Issue a one-off subsidy for employment expansion. A local subsidy of 1,500 yuan per person shall be issued to enterprises recruiting university graduates during the graduation year, the number of whom will be calculated according to the number of people who have signed labour contracts with the enterprises and participated in unemployment insurance, and the status of university graduates in the graduation year can only be used once by the enterprises. The one-off subsidy for employment expansion and the one-off subsidy for employment absorption are mutually exclusive for entitlement. The funds required are charged to the unemployment insurance fund and are specifically accepted and examined by the public employment service agency and issued by the social security agency. The implementation period is until December 31, 2022. (See Appendix 4 for guidelines for claiming the one-off subsidy for employment expansion)
IV. Streamline the declaration process for enterprises
The deferred payment of social insurance premiums is voluntary. Eligible distressed enterprises may apply for deferment for a certain period according to their own circumstances during the deferment period. Human resources and social security departments and tax services at all levels shall streamline the processes and procedures, and vigorously implement online and other contact-free services, to facilitate the handling for enterprises and reduce the burden of procedural affairs. For applicable conditions of production and business difficulties and types of industries, the notification-commitment system is adopted. Enterprises shall issue a written commitment of meeting the conditions and assume corresponding legal liabilities. Post-supervision and inspection shall be strengthened. For enterprises that have made commitments but are found to be ineligible, the deferred social insurance payment shall be promptly recovered and the late payment fees shall be imposed as required. A new mode of “entitlement without application” for fee rebates to enterprises that stabilise employment has been fully implemented, whereby the rebate amount will be directly and accurately distributed to the public accounts upon data matching in the back-end system. For small- and micro-sized enterprises that do not have a public account, the funds can be returned directly to the account provided by the tax service, according to the Tripartite Agreement on Entrusting Banks (Financial Institutions) to Transfer Tax and Fee Payments signed with relevant enterprises.
V. Effectively safeguard employees’ rights and interests
Enterprises applying for deferred payment of social insurance premiums are required by law to fulfil their obligation to withhold and pay individual portions on behalf of employees. Enterprises’ deferred payment must not affect employees’ rights and interests. During the deferment period, if an employee applies for pension benefits or the transfer of social security relations, the enterprise shall make up the deferred pension insurance premiums for the said employee. Enterprises may pay the deferred premiums in advance in a lump sum or instalments according to their actual needs, and tax services shall collect them in a timely manner. In principle, the deferred unemployment insurance and work injury insurance premiums shall be made up within one month after the expiry of the deferment period; the deferred basic pension insurance premiums for employees shall be made up no later than the end of June 2023. Late payment penalties are exempted during the deferment period, and tax services shall remind enterprises to make up the due payments in a timely manner. In the event of cancellation of an enterprise with deferment, the deferred payment shall be paid up before cancellation.
Local governments shall attach great importance to and carefully organise the implementation, accurately grasp the scope covered by the policy, standardise procedures, improve the review mechanism and effectively prevent risks. And governments must effectively assume the principal responsibility, strengthen the monitoring of the income and expenditure of the social insurance fund, and safeguard funds to ensure that all social insurance benefits are paid in full and on time. Human resources and social security, development and reform, finance, taxation and other departments at all levels shall strengthen collaboration, improve information exchange and coordination mechanisms, and effectively implement the requirements of the deferred payment policy to ensure that the policy is effective. Situations and problems encountered in implementation shall be reported in a timely manner.
Appendixes:
1.Expanded List of Distressed Industries Enjoying.doc
4.Guidelines for Claiming the One-Off Subsidy for Employment Expansion.docx
Human Resources and Social Security Department of Guangdong Province
Guangdong Provincial Development and Reform Commission
Department of Finance of Guangdong Province
Guangdong Provincial Tax Service of the State Taxation Administration
June 10, 2022