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Supporting key industries

Updated: Nov 28, 2017 chinadaily.com.cn Print

In order to promote industry revitalization and development and accelerate the pace of industrialization, the Guiyang CPC Committee and government issued the Opinions on the Policies to Develop the Industrial Economy, which ensures that the city will concentrate on developing its six key industries, namely, equipment manufacturing, aluminum processing, phosphorous processing, contemporary traditional Chinese medicine, green food and logistics.

A series of supporting policies and measures have been worked out in order to reach a goal of maintaining an annual growth of 18 percent in industrial added value since 2012. Later, the city issued the Work Program on Key Industries Investment for Industrial Economic Development in Guiyang. It hopes to pay attention to investment in the six industries to reach breakthroughs in the city's industrial economic development.

Major industry supporting policies

1. Six Industry Supporting Policies

The projects with total investments exceeding 2 billion yuan ($326.09 million) will have 1 million yuan in subsidies; projects with investment exceeding 1 billion yuan, 600,000 yuan of subsidies; projects with investment exceeding 300 million yuan, 300,000 yuan in subsidies; projects with investment exceeding 1 million yuan, 200,000 yuan in subsidies; and projects with investment below 100 million yuan but above 10 million yuan will receive some subsidies.

Guiyang will list the following resource industrial projects as major industrial projects: projects with investment exceeding 200 million yuan, equipment manufacturing projects with investment exceeding 80 million yuan, processing and manufacturing projects with investment exceeding 50 million yuan, and high-tech projects with 20 million yuan.

Projects with a total investment above 30 million yuan will enjoy local income tax cuts to support enterprises: 70 percent cut for the first year, 50 percent the second year, and 30 percent for the third year.

Guiyang will give key support to special advantageous industries such as the equipment manufacturing industry, contemporary traditional Chinese medicine and green food. Special support in project approval, financial support, land use, leasing, and electricity will be provided for enterprises with good growth.

Guiyang will give key support to the development and construction of the coal chemical, phosphorus chemical, and aluminum industry circular economy projects. Enterprises that purchase circular economy comprehensive utilization equipment and special technologies will get a subsidy of 5 percent of the real investment the same year after being confirmed by authorities. The highest subsidy will not be more than 200,000 yuan in general.

Guiyang will focus to support infrastructure construction of the Maijia-Shawen-Zazuo high-tech industry belt and the Xiaohe-Mengguan equipment manufacturing industrial belt. It will encourage qualified districts, cities and counties within Guiyang city to establish special industrial parks. The Guiyang municipal government will offer a certain amount of financial support to infrastructure construction of government-funded industrial parks and provide loans with three-year discounted.

Guiyang will establish a responsible system that connects municipal leaders and related departments with key industries, enterprises and projects to enhance supervision and accountability.

2. Supportive policies for the service industry

Research and development expenses of enterprises in the service industry for development of new technologies, new products and new techniques that have not been included in current profit and loss as intangible assets are deducted 50 percent in the calculation of taxable income. Those expenses that have been included in current profit and loss as intangible assets are amortized in accordance with 150 percent of the cost of the intangible assets.

Productive enterprises in the service industry that support national and provincial development zones or are located in the municipal service industries concentrated area can enjoy preferential policies for industrial enterprises. According to national regulations, exported goods of those productive enterprises can enjoy tax refund and exemption policies.

Qualified enterprises in the service industry for sectors such as research and development, design, creation, services outsourcing, digital content development, film and television production and services for energy conservation can enjoy corresponding preferential policies for high and new technology enterprises.

Enterprises in the service industry that purchase and actually utilize equipment for environmental protection, energy and water conservation and safety work can be credited 10 percent of equipment investment from the current year's payable tax amount; or the amount can be carried forward and credited in the following five tax years if the current year's payable tax amount is not sufficient.

Enterprises in the service industry (except for sectors of advertisement, housing agency, pawn, sauna, massage and oxygen bar) that have recruited new employees holding the Preferential License for Re-Employment in the current year with more than one year of contracts and that have paid society insurance premiums will be offered subsidies for their expenditure on society insurance premiums. Those enterprises are also given a fixed amount of money to cut their business taxes, urban maintenance and construction taxes, educational taxes and corporate income taxes according to the number of new employees. The standard is 4,000 yuan ($651) per person.

[This English version is only for reference. To learn more, please refer to the authoritative Chinese version.]

 

 

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