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Preferential fiscal policy

(en.investgz.gov.cn)
Updated: 2015-01-13

For any non-local investing enterprise in an encouraged or advantageous industry that is registered in Guizhou's industrial parks with a registered capital of no less than 10 million RMB: within 3 years from the first day of operation, governments of the municipality and county where the enterprise domiciles will refund local fiscal revenue's retained incremental portion of under-provincial-level taxes paid by the enterprise in full in the form of technical improvement input, etc. to support the development of the enterprise; after 3 years from the first day of operation but within 5 years from the first day of operation, the aforesaid taxes paid by the enterprise will be refunded in half. Any reinvestment made by a non-local enterprise with realized profits will be deemed as newly introduced investment, and specific incentive and supportive measures will be formulated and implemented by local government according to actual conditions.

Where an industrially transferred enterprise with independent intellectual property rights makes a second-time investment in the industrial cluster area, the portion of local revenues in the taxes paid by the enterprise will be refunded to the enterprise in an appropriate manner within 3 years.

Provincial financial department will further support industrial development. Besides the integration of technological innovation, technological innovation, SME development, energy conservation, information technology promotion and other special funds, 1 billion RMB of provincial industry and information technology development fund was established in 2011.

In 2011, over 60% of the provincial industry and information technology development fund was used for private economic development. Moreover, the provincial financial department has increased by 20 percent for three consecutive years. In principle, no less than one third of other special funds aimed at supporting the development of enterprises are used to support the development of private enterprises.

In 2011, the provincial financial department established an industrial park development fund for interest discount of the loan for the industrial park' public infrastructure construction. Governments at municipal and county levels will also arrange certain amount of funds to support construction and development of industrial parks. Funds of different sectors will be integrated to prioritize industrial parks' infrastructure, energy conservation, emission reduction, environmental protection and enterprises' technological upgrading, technological innovation and other key projects. In accordance with the principle of supporting the outstanding, the provincial financial department will reward those fast-growing, engaging and demonstrative parks as a substitute for subsidy.

Every year 100 million RMB out of the Provincial Industry and Information Technology Development Funds will be used to support key liquor enterprises' technological transformation, brand building and market development.

The provincial government will support private enterprises to participate in supporting large enterprise s and groups in and out of Guizhou Province. Highly specialized private enterprises that have signed a matching contract with a large enterprise will enjoy interest subsidies and guarantee institutions should actively provide credit guarantees. Large enterprises whose local matching rate have reached 40% or have increased by more than 10% annually will be rewarded. Relevant funds will be drawn from the provincial industry and information technology development funds.

Private enterprises are encouraged to invest in the construction of private economy industrial parks. Those that meet the standard of the provincial private economy industrial park will be rewarded with 10 million RMB drawn from the provincial industry and information technology development fund.

The government will reward industrially transferred projects that are qualified to enjoy national industrial policy and meet Guizhou's industrial development demands at a certain percentage of the actual amount of investment put in place. The percentage may be increased for high-tech industrial projects and leading enterprises that will attract other businesses.

The provincial government will reward wholly transferred enterprises that are certified as China Famous Brand, China Famous Product, China Famous Export Brand and other national-level brands for the first time after locating in Guizhou in accordance with relevant policy.

Financial institutions are encouraged to be established in Guizhou. From 2012, the government will reward corporate financial institution headquarters newly established in Guizhou at a rate of 1% of the actual amount of the registered capital put in place. The reward will be given in one time but it may not exceed 10 million RMB. Banks newly entering Guizhou will get a one-time subsidy of 100,000 RMB from the provincial government. Regarding financial institutions in the banking industry setting up additional outlets, relevant municipal government may develop incentive measures with reference to this opinion.

From 2012, every year 100 million RMB out of the provincial modern agriculture characteristic and advantageous industry development fund and 70 million RMB out of the poverty alleviation fund appropriated by the central government will be used to support the industrial development of traditional Chinese medicine materials... with a focus on standardized planting of traditional Chinese medicine materials, improved variety base, stock raising, seed and seedling base construction, market cultivation and other key areas related to the development of the industry in the form of interest subsidy and reward… From 2013, the provincial financial department will make greater efforts to coordinate the industrial development funds among all provincial departments and ensure that every year over 200 million RMB is put into the development of traditional Chinese medicine materials industry.

From 2011, governments at all levels shall follow the principles of "integrating those that already exited and optimizing those newly added" and give more fiscal support and bank loan interest subsidy for the construction of industry cluster districts’ infrastructure, professional investment promotion agencies, public service platform and incentive mechanism, and encouraged major industrially transferred projects.

The scope and increment of interest subsidized by financial funds will continue to be extended to support private enterprise' technological innovation, technological innovation, standards development, brand establishment and social service system.

Interest subsidizes or funds will be offered for qualified major industrially transferred projects' independent innovation, introduction, digestion, absorption and re-innovation, integrated innovation and technological transformation.

Enterprises engaged in service outsourcing will be given priority support when they apply for existing high-tech, information industry, education, business and other special funds according to relevant provisions.

Where enterprises invests in the construction of plants that meet industrial standards, the urban infrastructure supporting fee and industrial plant civil defense fee will be halved. Note (5)

The object and scope of subsidies for the construction of industrial park-standard plants:

Standard plants that are constructed in Guizhou's industrial parks (industrial cluster zones) and established under the permission of a government above county level.

Criterion of subsidy:

40 RMB per square meter for one-storey building; 60 RMB per square meter for two or three-storey buildings; and 200 RMB per square meter buildings of four or more storey s.

Reporting requirements:

Section planning shall be applied to the construction of standard plant s. Priority will be given to standard plant projects with more storey, higher occupation rate and prominent leading industries, especially those cover an area of over 50 mu or have a total floor area of more than 50,000 square meters;

Volume Fraction should reach 0.8, building density no less than 25%, land used for administrative office and living facilities under 7%, the area of individual buildings no less than 3,000 square meters, and each storey no less than 3.9 meters high;

Standard plant to apply for provincial subsidy should be the one that has been completed and put into use;

Water supply, drainage, power supply, roads, communications and land leveling are required for infrastructure in an industrial park;

Project investing enterprises (units) should be legally registered independent legal entities;

Relevant industrial park or project unit should have sound financial and management systems and submit statistical information in accordance with regulations.

Private enterprises are supported to participate in government procurement. Under equal conditions , products and services of private enterprises in Guizhou will be included in the directory of government procurement preferentially. Government procurement will give priority to private enterprises in Guizhou. Private enterprises in Guizhou should be prioritized for government procurement projects with budget of less than 2 million RMB. The government will strive to substantially increase the proportion of Guizhou’s private enterprises in government procurement contracts and the proportion of Guizhou's private enterprises' products and services in the bid amount of in major projects. Relevant departments and units will regularly publish the directory of Guizhou's private enterprises participating in government procurement and their products and services.

Any private enterprise that has difficulty in make one-time payment of mining right fees may apply for installment payment. The maximum period of installment payment is 10 years. Any private enterprise that meets Regulations for Management of Mineral Resources Compensation Collection (State Council Decree No. 150) may apply for no or reduced payment of mineral resources compensation.

Regarding any project included in relevant science and technology plan, key technological innovation plan or high-tech industrialization plan, within 3 years from the date the project is established, the government will charge no transaction fees for the purchase of newly-built buildings for production or scientific research and halve transaction fees and property right registration fees for the purchase of stock buildings for production or scientific research.

Any enterprise that acquires a state-owned enterprise in Guizhou may cancel the acquired company's existing non-performing assets and strip off non-operating assets after verification by a competent department. Where stock land and real estate transfer are involved in the process of acquisition, merger or reorganization, a competent department will alter the ownership according to the laws for free and handle water, electricity, gas and other warrants charging no fees but the cost for producing certificates.

Any venture capital institution established in Guizhou whose registered capital is 50 million RMB or above and which has engaged 200 million RMB or more of social capital investment in Guizhou will enjoy corresponding incentive for financial institutions, be refunded registration-related costs and be given a maximum of 100,000 RMB of start-up subsidy in one time. Any venture capital institution newly established in Guizhou whose registered capital is less than 50 million RMB and more than 30 million RMB and which meets the regulatory requirements for registration will be given 50,000 RMB of start-up subsidy in one time.