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Tax authorities, banks roll out policies to relieve financial pressure of small businesses

Updated: 2020-04-13

Banks and other financial institutions will make loans more accessible to small and micro-sized businesses affected by the epidemic, in order to help them resume work and production.

Small and micro-sized businesses will enjoy some customized credit loans, with faster credit approval, appropriate increases in credit limit, and extensions of loan terms.

This is one of the measures taken jointly by tax authorities, banking supervision departments and banks to help enterprises convert tax credits into financing and alleviate the financial problems of small and micro-sized businesses during the epidemic.

Recently, the State Taxation Administration and the China Banking and Insurance Regulatory Commission jointly issued a notice that aims to strengthen the cooperation between tax authorities, banking supervision departments and banks. Since the launch of this partnership in 2015, it has been applauded by taxpayers.

According to the notice, local tax authorities would promptly create a list of small and micro-sized businesses in the industries seriously affected by the epidemic and provide banks with relevant tax payment information authorized by the relevant companies, to help the banks actively meet the needs of the enterprises and provide them with accurate financial services.

The range of "banks-tax authorities interaction" beneficiaries will be gradually expanded to include enterprises with C-class tax credit and those self-employed businesses included in provincial tax authorities' tax credit evaluation pilots.