Policies and regulations

政策法规

 

Interim Measures of China (Zhejiang) Pilot Free Trade Zone on Accelerating the Development of Headquarters Economy

 

I. General

This Interim Measures are formulated to speed up the construction of China (Zhejiang) Pilot Free Trade Zone (hereinafter referred to as “Zhejiang Pilot Free Trade Zone”), guide the high-end, intensive and large-scale development of headquarters economy of Zhejiang Pilot Free Trade Zone, give full play to cluster effect of enterprise headquarters, drive industrial transformation and upgrading, enhance the city service level and improve comprehensive competitiveness of Zhejiang Pilot Free Trade Zone.

II. Scope

This Interim Measures shall apply to the legal organizations that are registered within the scope of the Zhejiang Pilot Free Trade Zone and excise the functions of investment, management and service for holding enterprises and branches in larger regions, excluding enterprises in Zhoushan that settle by migration.

III. Identification Standards

Headquarters enterprises in Zhejiang Pilot Free Trade Zone shall meet the following specific standards:

(1) Registered in the Zhejiang Pilot Free Trade Zone, with independent legal personality, implementing a unified accounting and having integrity management according to law.

(2) In line with industrial development orientation of the Zhejiang Pilot Free Trade Zone (not including real estate).

(3) Having no less than 3 holding enterprises or branches registered outside the city in principle and performing management and service functions and making out invoices uniformly or paying taxes collectively (in part) with them.

(4) Having actual registered capital of no less than RMB 50 million Yuan (RMB or equivalent foreign currency, the same below) and net assets of no less than RMB 100 million Yuan.

(5)Having previous-year operating income of no less than RMB 200 million Yuan, including no less than 20% from holding enterprise and branches.

(6) No smaller than RMB 10 million Yuan of local retained portion of enterprise income tax and value-added tax paid in the previous year,.

Those technological, cultural or other headquarters enterprises not meeting above standards may enjoy easier and appropriate standards upon the approval of the Administrative Committee of China (Zhejiang) Pilot Free Trade Zone, if they play a greater role in the industrial development of the Zhejiang Pilot Free Trade Zone.

IV. Policy Measures

The following support policies may be enjoyed by newly established or newly settled headquarters enterprises in the Zhejiang Pilot Free Trade Zone on the date of issuance of the Interim Measures and the following years:

(1) Startup subsidy policy

Newly settled headquarters enterprises will be given a one-time startup subsidy. One-time startup subsidies of RMB 1 million Yuan, RMB 200 Million Yuan and RMB 5 million Yuan will be awarded to those having paid-in registered capital of RMB 50 million Yuan (including) to RMB 100 million Yuan, RMB 100 million Yuan (inclusive) to RMB 1 billion Yuan and more than RMB 1 billion Yuan respectively.

(2) Office occupancy subsidy policy

1. Those purchasing office occupancy for their own use will be give one-time subsidy based on RMB 1,000 Yuan per square meter, with maximum amount not more than RMB 1 million Yuan.

2. Those purchasing self-built office space and having building area self-use rate of more than 60% may apply for house building subsidies. The specific amount is determined through “One Project One Discussion”, not more than RMB 5 million Yuan and paid in five years based on 20% per year.

3. Those renting office occupancy for their own use will be given 100% subsidy as per rentals specified in lease contract within 3 years since the establishment.

Headquarters enterprises enjoying the above subsidies shall make sure not to change the use of housing, transfer or sublease within five years after occupying the office. They shall refund the subsidies received if the purpose of the housing must be changed or must be transferred or subleased due to special reasons.

(3) Business contribution incentive policy

The newly introduced headquarters enterprises will be given reward based on local contributions of such enterprises and in proportion of the local retained part of value-added tax and corporate income tax paid in the Zhejiang Pilot Free Trade Zone within 5 years since the identification year.

(4) Administrative fees policy

Incentives of certain proportion will be given for administrative fees that are paid within the scope of municipal government approval authority based on local contributions of such enterprises since the identification year.

(5) Talent incentive policy

High-end talent and personnel in short supply employed by headquarters enterprises in Zhejiang Pilot Free Trade Zone will be supported according to policies of the Opinions on Implementing New Policies for Talent Development and Building New Highland of Talents for Marine Economy (Z.Z.X.D.F. [2016] No.11).

(6) “One Project One Discussion” policy

The startup subsidies for corporate headquarters and regional headquarters of key enterprises including world’s top 500 enterprises, china’s top 500 enterprises, multinational companies, large central enterprises and others will be executed as per policy of encouraging top 500 enterprises specified in the Interim Measure of China (Zhejiang) Pilot Free Trade Zone on Key Enterprises Cultivation and Support. Enterprise making particularly large contributions to the local economy may enjoy the “One Project One Discussion” policy based on the foregoing policies.

V. Supplementary Provisions

(1) Where support policies under the Interim Measures are similar to those preferential policies enacted by the municipality (including governments of counties (districts) and economic functional areas), enterprises may apply for enjoying the higher one on the basis of no repeat.

(2) Headquarters applying for supports under the Interim Measures may enjoy annual financial and tax support and incentive with the amount not exceeding actual local retained total of tax paid in the municipality of the current year; for those exceeding, payment of subsidy will be postponed to subsequent year (startup subsidy, subsidy for purchase of office space for own use and subsidy for self-built office space are not included).

(3) Incentive and subsidy funds under the Interim Measures shall firstly be applied by headquarter enterprise, with application submitted to local county (district) government or administrative committee of economic functional district for initial examination, then approved by the Administrative Committee of China (Zhejiang) Pilot Free Trade Zone and paid by finance department of the same level where the project is located in advance, and finally be afforded according to tax share ratio under existing financial management system.

(4) Those headquarters enterprises who enjoy incentive or subsidy under the Interim Measures and take fraud and other means to cheat preferential policies shall be ordered to rectify in limited time with qualification of preferential policies cancelled, payment of preferential policies stopped and income of incentive and subsidy recovered. Those violating the laws and regulations shall be investigated for legal responsibilities.

(5) The Interim Measures shall come into force on the date of issue. In case of higher-level policy adjustments, higher-level policy advises shall prevail. This Interim Measures shall be interpreted by the business department of the Zhejiang Pilot Free Trade Zone.