TAIZHENGFA [2019]6
Tai’an Municipal People’s Government
Notice on printing and distributing Tai’an Municipal Support & Incentive Policies for Attracting Investments
All counties, cities and districts people’s governments, all municipal departments, subordinate units, and all provincial agencies in Tai’an:
Tai’an Municipal Support & Incentive Policies for Attracting Investments has been approved by the Municipal People’s Government, and now is distributed to you. You are required to observe and implement assiduously.
Tai’an Municipal People’s Government
August 21, 2019
Tai’an Municipal Support & Incentive Policies for Attracting Investments
To attract more investments, promote “inviting investors and investments, and attracting talents and intellectuals” in practices, and promote high-quality economic development in Tai’an, based on relevant policies and regulations of superior governments like the State Council’s Notice on Further Opening-up to the Outside World and Vigorously Utilizing Foreign Investments, and Shandong Provincial People’s Government’s Notice on Printing and Distributing Several Policies for Supporting High-Quality Development of Substantial Economy, and in light of our municipal status-quo, we hereby formulate these polices.
I. Project support policies
(1) Supports for invited investors and investments
For external investment projects in the 10 pillar industries of old growth driver replacement (from outside the Shandong province) amounted to more than 100 million RMB Yuan (exclusive of land procurement and relevant expenses; more than 20 million RMB for modern high-efficiency agricultural projects; the same hereinafter) and with 50% or above external investment newly introduced into the city, and foreign-invested projects with USD 5 million direct foreign investment, since the first day of their operation, 100% of their newly added financial sources for local retainment will be taken as financial support for the first three years; for the 4th and 5th years, 50% will be given to the enterprises as financial support. The project capital arranged by the Central People’s Government or provincial people’s government, national debts and other fiscal investment capitals as well as the governmental guidance fund as investment of investment-inviting fund arranged by governments at various levels will not be accounted as project investment here.
(2) Awards for foreign-invested projects
For foreign-invested enterprises, 1% of their capital amount actually credited into account will be awarded. For Fortune Global Top 500 enterprises (manufacturers), and 2% of their foreign capital actually credited into account of the registration year will be awarded. Foreign investors are encouraged to merge and acquire some conventional enterprises for reorganization and reformation, and 1.5% of their capital amount actually credited into account will be awarded. Investors from outside are encouraged to re-invest their after-tax profits, and 1.2% of their share transfer, transfer to paid-in capital or investment amount will be awarded. For Fortune Global 500 enterprises (manufacturers), 2.3% of the amount will be awarded. The above award will not exceed 10 million RMB Yuan.
(3) Incentives for headquarters economy
For newly introduced headquarters, regionally functioning agencies and commercial real estate economy enterprises, since the day of their operation, if their newly added taxes are below 10 million RMB Yuan, 50% of their local retainment will be returned as financial support; if the amount is between 10 million and 50 million, 60% of their local retainment will be returned; if the amount is between 50 million and 100 million, 70% of their local retainment will be returned; if the amount is above 100 million, 80% of their local retainment will be returned. For the same enterprise (project), this preferential support polices will be valid for 5 years.
II. Investment solicitation award policies
Those first solicitors who have successfully introduced projects in the 10 pillar industries of old growth driver replacement will be awarded. For those who have solicited investment into this city, 1‰ of the amount actually invested from outside the Shandong province as fixed assets will be awarded. For those who have successfully solicited and utilized foreign investments, 1‰ of the amount directly invested by foreign investors will be awarded. For Fortune Global Top 500 and Chinese Top 500 enterprises-invested projects, 2‰ of the amount directly invested by foreign investors will be awarded, and 2‰ of the amount actually invested from outside the Shandong province as fixed assets will be awarded, and the minimum award is 200,000 RMB Yuan. For an individual project above, the maximum award will not exceed 3 million RMB Yuan. Those first solicitors who have successfully introduced headquarters offices, regionally functioning agencies and commercial real estate economy enterprises, 1% of the local retainment of the newly added financial resources in the first complete accounting year of the project will be awarded. For an individual project above, the maximum award will not exceed 2 million RMB Yuan.
The first solicitor refers to the first business inviting individual or team who takes an external investor into Tai’an for a tour of observation and helps them to make investments. The qualifications of the first solicitor shall be jointly identified and confirmed by the external investor and the project supervising government. If more than one referral are involved in the same project, the very first one should be the one who can take the award, and they are expected to negotiate with each other and distribute money award on their own. For those who have already obtained agent commission in the name of entrusted investment promotion and investment agency, the above solicitor award policies will not apply.
III. Production elements support policies
(1) Land supply. Industrial land supplies will be secured, with priority given to critical industry, strategic emerging industry and cultural tourism projects. For those projects falling into national industrial classification, industrial land can be provided in the form of long-term rent, rent-to-buy arrangement, and rent & buy combination.
(2) Preferential workshop buildings. All counties (cities and districts), and municipal functional zones are encouraged and supported to develop industrial real estate, following the principles of “nestling for phoenixes” and “higher investment intensity”, and constructing multi-story workshop buildings and supporting facilities, to provide enterprises with light assets move-in conditions. All counties (cities and districts), and municipal functional zones are supported to take the form of equity cooperation with land, workshop buildings and other essential facilities as equity, and follow the equity withdrawal mechanism so that enterprises can buy back their equity by stages. This is meant to enhance the appeal of the industrial parks.
Investments for newly built workshops can be provided with a certain amount of construction and decoration subsidy for standard workshops. For workshop rent, the industrial projects that have obtained economic returns within their contracted years will be given a certain amount of workshop rent subsidy.
(3) Equipment purchases. For those new generation IT, high-end equipment and intelligence manufacturing, new materials, new energy and energy conservation, bio-medicines, health care and the like industries projects, their purchases of imported equipment or complete domestic equipment will be given a certain amount of loan interest discount or subsidy. For an individual enterprise’s equipment purchases, the support amount will not exceed 2 million RMB Yuan.
(4) Financial support. All local governments are supported and encouraged to establish a special industrial development support fund, and issue concrete and feasible support policies. The dedicated capital for replacement of old growth drivers will be preferentially given to support those key enterprises, projects and innovation platforms that “invite external investors & investments, and attract external talents and intellectuals”. All governments shall play their funding guide role well, introducing social capitals and effectively guide the fund into advantageous industry, so as to enhance the governments“inviting and attracting” marketing performance.
IV. Matters of concern
(1) These policies are applicable to various investments on projects in line with national, provincial industry policy and municipal industrial plans where investing bodies take the forms of sole proprietorship, equity holding or equity participation for major initiatives with new replacements for old growth drivers. The enterprises to be awarded shall be those eligible independent legal entities that have industrial and commercial registration, and pay taxes according to law in Tai’an. Real estate developers & constructors, commercial complex developers, distinctive town developers, governmental & social capital cooperation (PPP) project investors are not applicable.
(2) The “investment projects” in these policies refer to those newly established domestic and foreign projects in Tai’an with investment from legal entities or individuals from outside the Shandong province, and their eligibility is subject to the identification and deliberation of competent governmental departments. The domestic projects refer to those with investments in Tai’an by investors outside the Shandong province, whole the foreign projects refer to those directly invested people/legal entities outside Chinese mainland.
(3) The above support and award policies will be implemented under the principle “beneficiaries bear responsibilities”, and the support and award capital shall be paid by the counties (cities and districts) or municipal functioning zones with the rights of jurisdiction for the enterprise (project), and the share of the municipal government will be settled by the municipal fiscal system.
(4) For those newly introduced projects with investment above 5 billion RMB Yuan, Fortune Global Top 500 enterprises, global industrial leaders, and headquarters offices that contribute a lot to Tai’an’s economic development, “one settlement for one project” policy shall be materialized for critical support and award.
(5) For the same enterprise (project), if similar features fall into these policies for support or award, or meet similar requirements of other policies of Tai’an, the highest but no repeated support (award) will be provided.
The taxes involved in the award and subsidy will be paid by the awarded enterprises (individuals). Should any awarded enterprise (individual) be found of having broken promises or fraud for award and subsidy, the awarded capital will be reimbursed upon verification, and legal actions will be taken to those leading corporate principals and relevant personnel held accountable. The foreign currency involved in these policies will be paid in RMB Yuan based on national currency exchange rate in the corresponding period.
(6) Those projects in line with our municipal industrial development plan with investment amounted to less than 100 million RMB Yuan and 10 pillar industries projects with investment from outside Tai’an but within the Shandong province will be given support and incentive policies separately formulated by all counties (cities and districts), and municipal functioning zones
(7) This notice is subject to the interpretation of Tai’an Municipal Bureadu of Commerce (Municipal Investment Promotion Bureau), and it takes effect since the date of distribution. Those previously contracted investments, if still within the preferential policies, shall be carried out according to the original investment contracts.
CC: Various municipal departments, municipal people’s congress standing committee office, municipal CPPCC committee office, municipal people’s court, municipal people’s procuratorate and Tai’an military sub-command, and all democratic parties’ municipal committees.
Office of Tai’an People’s Government
printed and distributed on August 21, 2019
