Preferential Policies for Investment in Xi Xian New Area
(Oct. 21, 2011)
According to relevant spirit of Suggestions on Deep Implementation of the Western Development Strategy by the CPC Central Committee and the State Council, Guanzhong - Tianshui Economic Zone Development Plans, and Policies of Shaanxi Provincial People’s Government for Accelerating Development of the Xi Xian New Area, the following preferential policies shall be for development and construction of Xi Xian New Area.
Article I Reduce tax rate of business income tax to 15% for encouraged industrial enterprises located at Xi Xian New Area
Reduce tax rate of business income tax to 24% for general productive enterprises with foreign investment which have operated for over Ten years. For newly established productive enterprises with foreign investment, income tax is exempted for the first two years from the first profit-making year; reduce tax rate of business income tax to 12% from the third year to the fifth year.
For export enterprises with foreign investment and the export output reaching over 70% of gross output of the same year, reduce tax rate of business income tax to 10% for the same year.
For enterprises with foreign investment, annual losses can be redeemed with incomes of the next year; if incomes of the next year can not redeem all the loss, it can be redeemed year by year with a maximum of five years.
For approved high and new tech enterprises with domestic investment, reduce tax rate of business income tax to 15%. Business income tax of newly founded high and new tech enterprises can be exempted for two years from the year starting business.
Article II For earnings from investment and operation of specially supported public infrastructure project and incomes of eligible environmental protection, energy conservation, and water saving projects, enterprises shall enjoy the preferential policy of “exemption of business income tax for the first five years and halving the business income tax from the sixth year to the tenth year”.
Article III For encouraged industries with domestic and foreign investment, as well as competitive industry projects with foreign investment, self-use equipment imported within the aggregate investment can be exempted from customs duty and import value-added tax.
Article IV For resource-based enterprises with investment in Xi Xian New Area, deduction before taxe is permitted for special funds of environmental protection and ecological restoration and the like withdrawn from resource development in Shaanxi.
Article V Business tax, value-added tax and business income tax are exempted for key energy saving service business implementing contract energy management project within Xi Xian New Area.
Article VI For venture capital enterprises with equity investment in unlisted small and medium-sized high tech enterprises for over two years (including) and living up to rated conditions, 70% of the amount of investment in the small and medium-sized high tech enterprises can be balanced as taxable income of the venture capital enterprises; in case of insufficient taxable income in the current year, the amount can be balanced year by year continuously during the coming tax years.
Article VII Support development of non-governmental economy; for private enterprises in the National Top 500 which pay taxes in Xi Xian New Area, one-time award shall be given with 1% of remaining part for the region from actual ratal of the enterprise.
Article VIII Implement tax preference for technology advanced service outsourcing enterprises and demonstration zone; support the technology research and development, as well as self-dependent innovation thereof. Exempt resident enterprises in software and service outsourcing enterprises from business income tax for the part less than RMB five million Yuan of the technology transfer income; halve the collection of business income tax for the part surpassing RMB five million Yuan.
Article IX Guarantee the construction land of project settled in Xi Xian New Area. Land supply and land plan target of Xi Xian New Area are listed independently; average land supply volume of Xi Xian New Area occupies 30% of that of the whole province. The provincial government supports first try of Xi Xian New Area in respect of land utilization and management, and supports off-site delimiting, linking of increase and decrease, and balance of requisition and compensation of the land within the whole province.
Article X Urban infrastructure facility fees, household garbage disposing fees and sewage charge paid for investment of key pilot town construction in Xi Xian New Area should be returned in full amount for infrastructure construction and maintenance. An increase and decrease linking target for 1500 mu of land is provided for each key pilot town, so as to encourage replacement of countryside homestead into urban housing.
Article XI Give priority to overall arrangement of key projects accredited or authorized by the Central Party Committee and provincial government, such as water conservancy, traffic, environment, characteristic agriculture, physical distribution, culture, tourism and so on in Xi Xian New Area. Support local processing and transforming of resources with market and benefit. Assort investment of the Central Party Committee with investment of provincial government; increase intensity of payment for generalized financial transfer payment and special projects like infrastructure, environment, key projects, industrial development, public service, etc.; continuously transform government loan enlending fund of part public welfare projects into allocation of funds.
Article XII Xi Xian New Area is jointed with Northern Shaanxi’s energy base construction. Enterprises with important industrial investment in Xi Xian New Area within five years can take precedence in Northern Shaanxi’s resource development. Encourage resource development enterprises in Shaanxi to participate in construction of Xi Xian New Area besides enjoying relevant tax preference. Implement linking between cost of two rights (exploration right and mineral right) for Northern Shaanxi’s energy and construction of Xi Xian New Area.
Article XIII Enterprises with investment in B area of the National Xi’an comprehensive bonded zone in airport town of Xi Xian New Area can enjoy relevant national bounded logistics and port clearance preferential policies, equal to Xi'an International Trade and Logistics Park.
Article XIV Capital support is given for transportation, storage, dispatching, information facility of key logistics enterprises and infrastructure construction of logistics parks.
Article XV Set up special funds for suburban “Vegetable garden” project, encourage enterprises to develop urban agriculture in Xi Xian New Area and build standardized, scale and specialized vegetable production bases. Support construction of “Hundreds of Warehouses” (air conditioned storehouse and cold storage) for agricultural products; for each storehouse, RMB one million Yuan is subsidized.
Article XVI Set up National demonstration base for overall planning of science and technology resource reformation in Xi Xian New Area for preferentially undertaking significant National science and technology projects and key high tech enterprises. Encourage cooperation between enterprises as well as institutions of higher learning and scientific research institutes; develop high tech research and development aggregation base, hatching base and industrialization base, and exempt relevant projects from partial public municipal facility fees; tax on urban land use of self-use land for scientific research development can be exempted for the enterprises.
Article XVII A reward of over RMB 200,000 Yuan is given for provincial enterprise technology centers newly established in Xi Xian New Area by scale enterprises jointly with institutions of higher learning and scientific research institutes; a one-time bonus of over RMB three million Yuan is given to National engineering research center and key laboratories of newly established scale enterprises, and over RMB three million Yuan to leading units of newly approved National industrial technology innovation strategic alliances.
Article XVIII Support enterprises for application of technological innovation products; offer an allowance or discount of less than RMB three million Yuan, or 20% of technical contract trading volume thereof to enterprises undertaking significant scientific and technological achievements of institutions of higher learning and scientific research institutes and successfully transforming the achievements in Xi Xian New Area.
Article XIX Award for key service outsourcing projects, and give financial support for institutions involved in service outsourcing personnel training.
Article XX For military units implementing transformation of significant high tech achievements on the spot with support from army-civilian combination innovative business, give a discount support to the mortgagee with 5% of the loan amount, or less than RMB five million Yuan, based on sales volume and loan volume.
Article XXI Support enterprises in energy saving and emission reduction, and develop low carbon economy and circular economy; offer a one-time bonus of RMB 300 Yuan per standard fuel for energy saving renovation projects implemented through the contract energy management system by approved energy saving service companies in Xi Xian New Area, based on actual annual energy saving quantity of the projects.
Article XXII Encourage financial institutions to establish a branch or a place of business in Xi Xian New Area; in addition to land and tax preference, all administrative and institutional charges for registration, certificates, and authentication are exempted for new financial institutions registered in Xi Xian New Area within five years. Reward financial institution headquarters or regional headquarters established in Xi Xian New Area, and subsidize their purchased, self-built or leased self-use office premises in Xi Xian New Area.
Article XXIII For newly introduced financial institutions, return business tax increment of the same year in full amount; return in full amount the local tax of income tax paid by enterprises within three years from the tax year; from the fourth year to the fifth year, return 50% of the local tax of income tax paid by enterprises.
Article XXIV Take full advantage of capital market at home and abroad for financing, gradually increase proportion of direct financing, found special funds for listing support, and advance upfront fees for listing of key cultivated backup enterprises. Upfront capital for each enterprise should be less than RMB one million Yuan. Enterprises failing in listing within three years should refund exactly all the upfront capital; for successfully listed enterprises, the upfront capital shall be given as an award, and certain awards will be given to leading groups. Encourage enterprises to actively employ debt financing tools, and issue corporate bond, short-term financing bills and mid term note, etc.
Article XXV Actively explore various loan guarantees like mortgage or pledge and the like, support establishment of small loan companies, guarantee agencies and pawn companies, and (with 1-2% of average amount guaranteed) give subsidy to bonding companies offering warranty service of credit for small and medium-sized enterprises; after approval, exempt business tax of the guarantee business for three years for eligible small and medium enterprise guarantee agencies.
Article XXVI RMB three billion Yuan of capital fund is arranged by provincial and municipal financial department for construction of a financing platform in Xi Xian New Area. Set up development fund of Xi Xian New Area which can mainly be applied to infrastructure and municipal facility construction, give support to strategic new industries like energy conservation and so on, and support cluster development of modern service industries like culture, trade, tourism, and the like, as well as risk investment of high tech enterprises.
Article XXVII For venture capital investment fund of enterprises establishing new industries like new energy, new material, biomedicine, and so on, give priority to list the enterprise in State plan, strive for industrial technology research and development fund of the State; after approval of the State, the province will invest RMB 10-50 million Yuan for each fund based on the principle of “share without holding”.
Article XXVIII Strive to develop capital market in Xi Xian New Area; encourage enterprises to participate in scientific and technological enterprises and small enterprises stock equity transfer system. Implement paid use of environmental capacity, carbon emission, paid use of initial pollution discharge, emission trading, water right trade, as well as trade of pilot energy, mineral resources, land, and so on.
Article XXIX A one-time bonus of RMB two to five million Yuan is given to World Top 500 enterprises investing in Xi Xian New Area with project investment of over RMB one billion Yuan. A one-time bonus of RMB one to two million Yuan is given to National Top 500 enterprises investing in Xi Xian New Area with project investment of over RMB ten billion Yuan. 5% of the bonus will be rewarded for individuals with outstanding contributions to introducing the projects.
Article XXX One-time bonuses of RMB one million Yuan and RMB 500,000 Yuan are respectively given to overseas talent of National “Thousand Talents Plan” and provincial “Hundred Talents Plan” introduced to Xi Xian New Area. Individual income tax is exempted for various high level talent bonus issued by the government.
Article XXXI Encourage overseas returnees to establish businesses in Xi Xian New Area; launch scientific research and personnel training; give fund subsidy for key projects, excellent projects, and launched projects accordingly.
Article XXXII High end talents of Xi Xian New Area have priority in transaction of registered permanent residence of the area, and have prefered policies in aspects of promotion, professional title rating, children’s education, and medical services; age or index cannot limit the settlement of spouses and children in Xi Xian New Area.