Guide

Policies

Updated: Dec 14, 2017 Print

Background

The city of Hechi seeks to aid economic development and attract more investors. Policies apply to any enterprise following the national industrial and environmental protection policies, and investing fixed assets of at least 50 million yuan ($10 million) and paying local taxes.

Industrial development support

A. Major industries

1. Hechi is encouraging the development of the following industries: new nonferrous metals, high-quality wine, drinking water, food, candy, snack foods, biological chemistry, modern biological pharmaceutical, digital information, modern agriculture and agricultural machinery, automobiles, engineering machinery and parts, solid waste utilization, energy conservation, silk textiles, new building materials, fine chemicals, logistics, trade and finance, information services, tourism, ecology, culture, radio and TV, press and publication, sports, healthcare, and modern services. The city wants to build a distinctly competitive industrial structure giving priority to ports, freight yards, highways, railways, airports, water conservation, energy, electric power, clean energy, environmental protection and ecological recovery.

2. Hechi will support major industrial and infrastructure projects by giving them priority in national economic and social development plans and regional plans. These projects will be the first to receive Guangxi's support with loans from the International Finance Corp and foreign and central government investments.

B. Hechi also supports industrial park development, and will invest in industrial parks and park construction while the provincial government has special funds to speed up development, services and industrial distribution.

C. There will be tight controls on industries with heavy pollution, high emissions and high energy consumption. Hechi will have centralized pollution controls and high emission standards to guide and control company production. It expects energy, water, land, and materials conservation to cut emissions, and have a more efficient use of resources. It is pushing clean production and a circular economy and ecological parks and protection. Companies using disposable resources will not be eligible for preferential policies

Taxes

A. Any companies with 50 million yuan ($10 million) in fixed asset investment will get a refund on local added-value and income taxes for the first two years and a 50-percent reduction from the 3rd to 5th years. Any new businesses that are encouraged by the State will get a local tax waiver until the national preferential tax policy expires, if their main business income accounts for more than 50 percent of their total income.

B. Hechi also has favorable urban land use taxes for any company that uses wasteland not suitable for cultivation. It will be free from urban land taxes for five years, and will pay only 50 percent for the next five years.

C. The city will have preferential tax policies for non-government funded education so that private schools will be free from land taxes for teaching and scientific research purposes.

Financial support

A. Any industrial company with a fixed-asset investment above 50 million yuan per year will get a 100,000-yuan disbursement from the finance department. Any company with a fixed-asset investment above 100 million yuan will get a 200,000-yuan disbursement. Foreign-backed agriculture, high-tech, labor-intensive, charity and public welfare projects with a fixed-asset investment above 50 million yuan, or any foreign company or non-production project with fixed-asset investment above 100 million yuan, will get a refund of 50 percent of their administrative costs for the first three years.

B. Any investment or finance company that establishes its headquarters, R&D, purchasing, or sales center in the city can get a refund of 50 percent of local income taxes for trade, health, tourism and education for 3 years.

C. The Hechi government sets aside two million yuan every year for investment promotion and business invitation awards.

D. Any new industrial company will get a refund of 1 percent of its local added-value tax if annual sales exceed 100 million yuan for 3 years, and industrial projects investing 1 billion yuan in fixed assets over a two-year period will get a disbursement of 200,000 yuan from the financial department.

Land use

A. Any industrial investor can qualify for State-owned land through a land transfer, lease or allocation after going through legal procedures. Any project in line with industrial policies that make optimal use of land will qualify for favorable land leases at minimum national pricing for land for industrial use. Certain projects also qualify for a favorable land lease based on the Land and Resources Ministry minimum land transfer pricing. Any project that Hechi is encouraging can qualify for favorable land leasing of no less than 70 percent of the price set by national standards. Processing projects for agriculture, forestry, animal husbandry and fisheries qualify for favorable land leases of no less than 70 percent of the price set by national standards. Any investor involved in developing unused State-owned land will qualify for favorable land leases of no less than 70 percent of the price set by national standards.

B. Any project will be given priority in land use if it involves an investment of more than two million yuan per 667 square meters and an investment of more than 50 million yuan in fixed assets.

C. Any industrial investor can pay land use cost in installments if they have trouble paying in full, with the first payment amounting to 50 percent of the total. Under certain conditions, major industrial projects may give stock or shares to the local government to offset land costs.

D. Any tourism project with a one-time investment of 10 to 50 million yuan in fixed assets can use 50 percent of the land transfer fee for infrastructure and any tourism project with a one-time investment of more than 50 million yuan in fixed assets can use 70 percent of the land transfer fee for infrastructure.

E. Any greening project on wasteland involving forestation or grain can give the investor ownership of lands and plants growing on the lands. Anyone who invests in forestation or other ecological development project on State-owned wasteland can use the land for free for 50 years. Any investment in ecological development can transfer or lease land use rights and apply for an extension when the contract expires. Any ecological development project on collective rural wasteland can get land use rights via contract, leasing or bidding for 50 years and these can be inherited or transferred.

F. State-owned land for developing crops, plantations, animal husbandry, fish breeding, or poultry, as well as poverty reduction can be leased, and collective land can be obtained through a cooperation agreement or joint leasing with local government approval.

G. Any company investing more than 500 million yuan in fixed assets can get priority in land use for employee housing, and can qualify for government-subsidized housing programs.

H. Land transfer management

1. An investor can't randomly change land use by following the land management law, getting local government approval and registering with the municipal land and resources bureau if they need to do so.

2. Any investor who fails to begin construction work one year after obtaining land use will be charged 20 percent of the land transfer cost and any land left idle for two years will be reclaimed by the local government.

3. Any investor who fails to complete the investment in fixed assets after two years will have the land taken back for the original transfer price, while any project investing more than 50 million yuan can apply to the Hechi government for additional time for construction work, but no more than one year.

4. An investor has to pay all the land costs and register with the local authority before they can use the land for a mortgage.

5. No investor getting financial support for land use can transfer or lease the land for a five-year period, and must make good on the financial support to transfer or lease the land after five years.

6. Any project with more than 500 million yuan in investment and which has an important influence on local economic development will be given favorable treatment.

Human resources and scientific innovation

A. Members of the Chinese Academy of Sciences and Chinese Academy of Engineering who contribute to local economic development in an outstanding way will receive 200,000 yuan in government funds in addition to their salary and talented personnel with a State Council monetary award can receive 100,000 yuan in government funds, while academic leaders can qualify for 50,000 yuan.

B. Hechi supports brand building and helps companies with brand awareness, and encourages them to register their trademark. Anyone with a famous Chinese brand will receive 300,000 yuan in financial support. Anyone with a well-known brand will receive 100,000 yuan, while a famous product can get 50,000 yuan and a certified green product, 20,000 yuan.

C. Hechi also encourages local companies to go public. In the case of those that succeed in getting listed, the local government will provide five million yuan in support.

Other

A. Any industrial investment of more than 50 million yuan in fixed assets, or agriculture or modern services investment of 10 million yuan, will get funding from the local human resources and social security departments for employee training.

B. Outside reinvestment has access to the same favorable policies as new investors if their project lasts for no less than five years. Restaurants will have access to the same charges for electricity, water and gas as industrial companies.

C. The investment value, tax assessment and output value can only be handled by the local statistics bureau and tax department. Any related bills can be taken to the local investment bureau to submit to the finance bureau for settlement.

D. Any company from outside will get favorable local policies, as well as others from the State and the Guangxi region.

E. The local investment promotion bureau is responsible for interpreting policies.

F. These rules take effect from the day of issue.

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


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