Key points of Guiyang's foreign investment promotion policies

I. Key points of Guiyang's foreign investment utilization policies

Article 1. Implementation opinions

1. Relaxing market access

(1) National treatment plus negative list: domestic and foreign investment outside the list shall be consistent and those inside the list shall be handled in accordance with the relevant regulations.

(2) Supporting fair competition: universal industrial policies, expanding opening-up areas and encouraging participation in government procurement.

(3) Encouraging foreign investment in mergers and acquisitions and participation in State-owned enterprise restructuring and reform.

2. Implementing tax and fees reductions

(1) Supporting research and development, innovation

A. The income tax rate of high-tech/advanced tech enterprises is 15 percent.

B. Relevant taxes and fees, such as on scientific research supplies and domestic equipment purchased by foreign-funded R&D centers, will be reduced and exempted.

C. A foreign-invested R&D institution will get a one-time subsidy of 3 million to 5 million yuan ($422,057 to $703,428) when set up.

D. Added-value tax is exempt for foreign-related technology transactions.

E. Patent and technical equipment insurance compensation mechanism.

F. For R&D expenses of foreign-funded enterprises, another 75 percent will be added in the profit and loss statement, and 175 percent will be amortized when counted as intangible assets.

(2) Encouraging investment expansion

A. Tax-free measures for qualified financial funds obtained by foreign-funded enterprises.

B. Deferred tax measures for qualified reinvestment by foreign-funded enterprises.

C. Comprehensive credits regardless of country and item and the tax credits and limits for overseas taxable income will be calculated at 25 percent.

(3) Guiding industry transfers

A. Providing support for relocation, installation and rental fees for encouraged projects.

B. Duty-free imports of self-use equipment for encouraged projects and a corporate income tax rate of 15 percent by the end of 2020.

(4) Preferential water and electricity prices

A. Free water charges for annual use of less than 1,200 cubic meters for agricultural production, or for sewage treatment and reuse.

B. Mining drainage is charged according to general industrial and commercial standards and charges are halved when enterprises themselves recycle mining drainage.

C. The water fee for the hot spring industry is charged according to the standards of special industries.

D. Foreign-funded enterprises enjoy industrial and commercial electricity price policies in electricity fee payments.

(5) Reducing labor costs

A. The medical insurance rate for foreign-funded enterprises can be temporarily reduced in eligible areas.

B. Enterprises can apply for subsidies for employment-ensuring measures according to regulations.

C. The proportion payable of the public housing provident funds can be chosen independently within the prescribed range.

D. Exploring the establishment of the public housing provident fund system targeting Guizhou-born laborers in foreign-funded enterprises.

(6) Reducing logistics costs

A. Cancelling eight charges, including railway freight dust suppression fees.

B. Enjoying the policy support of the new international land-sea trade corridor.

C. Discount of up to 11 percent on highway tolls for freight vehicles.

D. Exemption of lockage for inland river container transportation.

3. Building foreign investment platforms

(1) Promoting the concentration of foreign capital in development zones.

(2) Constructing international cooperation parks.

(3) Making good use of major investment promotion events and platforms.

4. Improving policy support

(1) Guaranteeing land for project use

A. Additional land use for projects with an investment of over $200 million will be coordinated by Guizhou's provincial-level authorities.

B. The land transfer base price of an eligible industrial project is executed at 70 percent of the lowest standard price.

C. No increase in the land price, for increasing land utilization ratio and floor area ratio.

D. The land quota for foreign-funded projects in development zones shall be guaranteed as far as possible.

E. Land for foreign-funded industrial projects that has been relocated due to the urban reconstruction can be rearranged.

F. Foreign-funded manufacturers, using factories in stock to develop productive service industries, could change land use types in accordance with the regulations after five years.

(2) Recruiting top professionals

A. Top international recruits can enjoy the benefits of the national key talent project – the National Hundred, Thousand and Ten Thousand Talent Project of China.

B. Fast track channels and service guarantees for housing, medical care, education and others will be offered to top professionals.

C. Purchase tax for self-use, domestically produced vehicles for returned overseas personnel shall be exempt.

D. Foreign-funded companies can enjoy funding policies when establishing postdoctoral workstations.

(3) Broadening financing channels

A. Relevant funds from Guizhou province to give support to key businesses for investment in Guizhou and for foreign investment.

B. Foreign-funded companies shall be be awarded a grant of 4 million yuan for listing on the mainboards, 3.5 million yuan for listing on the small and medium-sized enterprises board and ChiNext Board and 500,000 yuan for listing on the China's National Equities Exchange and Quotations.

C. Encouraging overseas listings, supporting debt issuance, allowing overseas capital to repay loans, guiding overseas long-term capital investment and supporting assignment of creditor's rights and assets.

(4) Facilitating the use of funds

A. Conducting cross-border two-way RMB fund pool business.

B. Supporting overseas financing and supporting settlements of foreign exchange, in accordance with their own intentions.

C. Free remittances of investment income.

D. Simplifying the audit of cross-border RMB business.

(5) Intellectual property protection

Implementing an intellectual property protection direct handling system, carrying out pilot reforms in relevant law enforcement, protecting trademark rights and allowing foreign-funded enterprises to participate in the award evaluations for inventions and discoveries.

5. Optimizing the investment environment

(1) Optimizing approval and record services: decentralization of authority, examination and approval of reform pilots, a one-stop processing and commission agency.

(2) Facilitating personnel entry and exit: issue and extension of R visa; issuance of residence permits; application for permanent residence; establishment of visa fast track channel; investment promotion group policy.

(3) Facilitating investment and trade: integrated customs supervision and single-window service system, which is an integrated services platform for international trade.

6. Strengthening support implementation

(1) Strengthening organizational leadership and legally honor investment commitments.

(2) Strengthening assessment and evaluation of core indicators, including foreign direct investment.

(3) Strengthening financial support, including financial support for targeted research on key projects.

(4) Strengthening inspections and guidance.