The provinces of Guangxi and Anhui became the latest Chinese regions to exempt employers from contributing to employee social insurance through the end of the year.

The relief measure was put in place in order to help regional authorities address the economic impact of the COVID-19 pandemic and its subsequent lockdowns. The policy, announced June 28 by the State Administration of Taxation, builds on business-relief efforts first implemented after the onset of the health crisis earlier in the year.

In the Guangxi and Anhui provinces, SMEs are exempt from paying three forms of social insurance. These insurances include basic old-age insurance, unemployment insurance, and work-related injury insurance. The authorities have confirmed that these exemptions will last for the remainder of the year, until 31 December 2020.

The Hubei province, which is ground zero for the coronavirus outbreak, also announced similar measures recently. The Beijing region, Henan province, and Fujian province announced their own adoption of the policy this week.

Large companies that benefited from the exemption in the first half of the year are no longer qualified for exemptions unless they demonstrate their operations have been severely impacted by the pandemic, allowing another six-month exemption if they qualify.

Under the latest policy, individual business owners can also delay paying into pension insurance into next year and can apply to delay payment until the end of 2021, if needed.


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