Measures for Implementation of Accurate Investment Promotion in Modern Industry

BOFCOM 2018-04-11

Qingdao Municipal Office for Investment Promotion:Qingdao City Implements Accurate Investment Promotion Policy for Modern Industry

(QZC Zi [2017] No. 2, published on July 1, 2017)

I. Reinforce policy support to introduce headquarter institution

1. For headquarter enterprises newly registered in our city, with paid-in capital below RMB 1 billion and above RMB 100 million, a lump sum of no more than RMB 10 million of subsidy will be given, and if the amount is below RMB 2 billion and above RMB 1 billion, a lump sum of no more than RMB 20 million of subsidiary will be given; and if the amount is above RMB 2 billion, a lump sum of no more than RMB 40 million of subsidiary will be given; the aforementioned subsidy funds will be paid within three years after the year of actually generating the local contribution, and shall be no more than the total amount of local contribution within these three years; the amount shall be borne by the city and the (district) city level as per the system.

2. In case of newly registered, set or newly introduced or being affirmed as the headquarter enterprise, the subsidy will be given at 50% of the total amount of local contribution generated in the first complete year after the date of affirmation, and then in the next two years, the subsidy will be respectively given at 25% of the total amount of local contribution generated by the enterprise; the amount shall be borne by the city and the (district) city level as per the system.

3. For the headquarter enterprises affirmed by our city, and have been firstly selected into the “World’s Top 500”, “Chinese Top 500”, “Chinese Software Top 100”, “the Key Software Enterprise in the National Planning Layout”, and “Shandong Top 100”, RMB 10 million, RMB 3 million, RMB 2 million, RMB 2 million, and RMB 1 million will be given respectively as awards; for headquarter enterprises whose annual operating incomes firstly exceeded RMB 50 billion, RMB 10 billion, RMB 5 billion, and RMB 3 billion, the operators can respectively obtain RMB 1 million, 500,000, RMB 300,000, and RMB 200,000 as awards.

4. For the industrial chain upstream and downstream pipe fitting supporting projects introduced by the industrial chain with the overall investment exceeding RMB 100 million, RMB 5 million, and RMB 1 billion in the headquarter enterprise, RMB 300,000, RMB 500,000 and RMB 1 million will be given respectively to the introducing enterprise as awards.

5. Since the date of affirming the headquarter enterprise newly registered and set or newly introduced and settled in our city, the district and city where it locates shall provide office, and business building or provide RMB 5 million of subsidy in a lump sum for self-building or purchasing or renting office and business building.

II. Introduce high-tech enterprise

6. For the newly introduced high-tech enterprises, a maximum of RMB 300,000 will be given as awards, and for key projects that can promote the development of high-tech industry, equity investment support will be given; as per the state’s taxation policy adjustment conditions about imported equipment, relevant policies about exempting the import linkage tax for the self-used equipment and the matching technologies as well as the spare parts and accessories of foreign-invested high-tech enterprise and technical advanced service enterprise shall be applicable.

III. Promote the development of pilot region for the comprehensive reform of wealth management finance in Qingdao city

7. For the legal person’s financial institution newly set and newly shifted into Qingdao City, a one-off subsidy will be given. In case that the paid-in capital is RMB 5 billion (including RMB 5 billion, and so on), RMB 100 million of one-off subsidy will be given; in case that the amount is below RMB 5 billion and above RMB 4 billion, RMB 80 million of one-off subsidy will be given; in case that the amount is below RMB 4 billion and above RMB 3 billion, RMB 60 million of one-off subsidy shall be given in one time; in case that the amount is below 3 billion and above 2 billion, RMB 40 million of subsidy shall be given; in case that the amount is below RMB 2 billion and above RMB 1 billion, RMB 20 million of one-off subsidy shall be given; in case that the amount is below RMB 1 billion, a one-off subsidy shall be given as per 2% of the paid-in capital.

8. In case that the existing legal person’s financial institution increases the capital, no more than RMB 5 million of one-off subsidy shall be given as per 1% of the newly increased capital after deducting the amount of government investment.

9. For newly set and newly introduced regional administrative financial institution, pay tax in Qingdao City on a consolidated account, and the business administrative range merely covers Shandong Province, RMB 1 million of one-off subsidy will be given; in case that the business administrative range includes Shandong Province and other provinces, RMB 2 million of one-off subsidy will be given.

10. Perfect the incentive mechanism of equity investment guidance fund. In case that the guidance fund shareholding sub-fund introduces qualified projects that meet the investment conditions to our city, it shall be deemed to be investment in the enterprises in the administrative districts of our city, and the department of finance shall give the shareholding sub-fund management company an one-off award at 2% of the shareholding sub-fund’s equity investment for the project. After completing the investment period for the guidance fund shareholding sub-fund, in case that the proportion of enterprises invested by the sub-fund in the administrative districts of our city is above 75%, the department of finance will provide its management company with a lump sum of RMB 1 million as award, or relinquish certain proportion of the value-added incomes of the guidance fund to the management company and the social investor.

IV. Support the investment promotion of tourist industry

11. Introduce new business patterns that are good for optimizing the tourism product structure, and fill in the tourism product gap as well as the big tourism enterprises above designated scale and big projects. There will be subsidy for the initial planning and design expense of big tourism projects introduced thereby, of which 50% will be subsidized for above RMB 1 billion of investment, with a maximum of RMB 5 million; 30% will be subsidized for RMB 300 million-RMB 1 billion of investment, with a maximum of RMB 3 million; and 10% will be subsidized for RMB 100 million-300 million of investment, with a maximum of RMB 1 million.

12. Each district and city shall provide appropriate subsidies as per the operating income conditions about the big tourism projects in the first 3 operation years, and provide support in the supporting facilities for big tourism projects, optimize the water supply, power supply, gas, road, surrounding greening and other facilities, and meanwhile, appropriately provide certain proportion of expense subsidy.

13. The government of each district and city, and the relevant economic functional district management committees shall negotiate on case-by-case basis the supportive policies concerning holiday resorts, coastal and marine tourism, large art performance, characteristic local houses, boutique hotel and other major tourism projects.

14. For the introduction of aviation tourism, recreation vehicle tourism, cruise tourism, rural tourism, health regimen tourism and other emerging business patterns of projects, the district and municipal government and the relevant economic functional districts will provide certain subsidy policy support, and give priority in arranging construction land.

V. Support the investment promotion by ETDZs

15. Reform and perfect the industrial land supply system, and, subject to relevant laws and regulations, study and promote the method for the industrial land users to pay the land transfer expense in installments within one year, provided that the initial payment shall be no less than 50% of the total. In case of expanding the construction of workshop inside the stocked industrial lands for national-level, and provincial-level economic development zones as well as using auxiliary facilities for self-development of the manufacturing enterprises with improved plot ratio, the land-transferring fees of the enterprise will not be levied. In case the existing enterprise has suspended production, and new projects can are introduce to utilize the resources and generate benefits, the district (city) where the development district locates shall provide the former enterprise with a maximum of RMB 50 million, or a maximum of RMB 100 million for new project.

VI. Attract domestic and overseas high-level talents

16. For the top talents newly elected and introduced as full-time workers in Qingdao City, each person can receive RMB 5 million of award as living allowances, which will be directly paid to themselves. The living allowances shall be paid every year within three years at the proportion of 20%, 30% and 50%.

17. For the unit that cultivated top talent of Qingdao City, a lump sum of RMB 3 million of awards will be allocated, which will be mainly used for talent cultivation, scientific R&D, etc.

18. For the flexibly introduced top talents, the subsidy will be annually given at a certain proportion of the labor remuneration actually paid by the employers, and the amount of subsidy per person shall not exceed RMB 2 million. The detailed subsidy standard is: RMB 100,000 of subsidy will be given for RMB 100,000 of labor remuneration; for the labor remuneration above RMB 100,000 and below RMB 200,000, the subsidy shall be given at 15% of the labor remuneration; for labor remuneration below RMB 200,000, and below RMB 500,000, the subsidy will be given at 20% of the labor remuneration; for labor remuneration above RMB 500,000, the subsidy will be given at 30% of the labor remuneration.

19. Support enterprises and public institutions to set top talent work station (academician work station), and promote high-level and in-depth cooperation between producers, universities and researchers. For those that can meet the conditions, the subsidy award can be given as per the relevant stipulations about the academician (expert) work station.

20. In case that top talents and teams come to Qingdao City for innovative work or the establishment of enterprises, and the innovative and entrepreneurship projects are of world’s first-class level and can exert a big influence on the industrial development of Qingdao City and bring big economic benefits and social benefits, a maximum of RMB 100 million of subsidy can be given after evaluation and affirmation.

21. Let the municipal government’s investment guidance fund play a leading role, and guide social fund to support top talents to come to Qingdao for innovation and entrepreneurship. Encourage top talents of venture capital investment institutions and industrial investment fund to set up enterprises and projects. Encourage and guide the financial institutions to support the top talents in innovation and entrepreneurship, support credit guarantee institution to provide loan guarantee, and support intellectual property right mortgage loan.

VII. Adopt more flexible employment system

22. To develop more flexible labor dispatching and employment system, and permit the enterprise fund project of manufacturing industry, the investment shall reach above RMB 500 million (inclusive), and form the fixed asset investment that can reach to above RMB 100 million (inclusive); in case of foreign-funded sub-project, the foreign capital of the contract shall reach above USD 50 million (inclusive), and meanwhile, the paid-in foreign capital shall reach to above USD 10 million (inclusive).

The award shall be calculated as per the paid in capital within the contract period and the capital increase in the contract and be paid as per the following principle: in case that the fixed asset investment for domestic-funded projects can reach above 1/3 of the total investment of the project, and the actual funds available for foreign-funded projects can reach above 1/3 of the total amount of investment for the project, the award can be applied for, and for each investment project, the application can be made twice; on the basis of meeting the aforementioned preconditions, in case of signing the agreement as per the project, with all project funds being paid in, the award can be paid in full; in case that the project funds are not fully paid, the award can be paid as per the actual amount of paid in capital.

The aforementioned policy measures shall be applicable to enterprises paying taxes in the administrative region of the city and their investment projects.