BEIJING, April 23 (Xinhua) -- China is helping more small- and micro-sized businesses (SMEs) to get tax credit loans, so as to assist them resume work and production amid the COVID-19 outbreak, reported China Securities Journal Thursday quoting officials from related authorities.
According to the officials, in the first three months (Q1) of this year, loans issued based on enterprises' tax credit were more than half of the total in 2019, and so far the loan balance hits 573.2 billion yuan, up 74 percent year on year.
Starting in 2015, China's tax and banking regulators forged a partnership through which banks can get SMEs' tax filling records from tax authorities according to law and with the permission of enterprises, and then provide customized tax credit loans to SMEs with integrity, said Han Guorong, deputy head of the Taxpayer Service Department of the State Taxation Administration of China.
Next, individual businesses included in the tax credit evaluation pilot projects of various tax authorities will be listed as beneficiaries of the mechanism, noted Li Junfeng, director of the Financial Inclusion Department with China Banking and Insurance Regulatory Commission.
According to Han Guorong, in Q1, trustworthy SMEs across China received 181.63 billion yuan of tax credit loans through the mechanism, up 22.3 percent year on year. (Edited by Gu Shanshan with Xinhua Silk Road, firstname.lastname@example.org)