Incentive Measures of Chancheng District
2009.06.23

Incentive Measures of Chancheng District

No. 98 [2004] Decree of the People’s Government of Chancheng District, Foshan City

Circular on Issuing the Trial Incentive Measures for Rewarding Attraction of Investment in Chancheng District, Foshan City

Government of Nanzhuang Town, all sub-district offices and departments concerned:

Upon the approval of the government of Chancheng District, the Trial Incentive Measures for Rewarding Attraction of Investment in Chancheng District, Foshan City are hereby distributed to you in print, please implement and execute accordingly.

November 23rd, 2004   

Trial Incentive Measures for Rewarding Attraction of Investment in Chancheng District, Foshan City

This decree has been formulated for the purpose of further expanding the scale of attracting investment and fully motivating the initiative of all sectors of the society in absorbing capital for the promotion of economic development of Chancheng District. 

1. Any economic organization home and abroad, social group and individual (hereinafter refer to as project recommender, excluding state organs and functionaries) who successfully introduce capital investment project to the district, is entitled to reward according to this decree.
2. The word “recommendation” in this decree indicates that the recommender has played a substantial intermediary role between different parties of the investment project, between parties of the investment project and the management departments of the premises or the industrial zone where the project is located, and has contributed to the success of the investment project through introduction, recommendation, communication and other behaviors.

3. The “introduced capital” in this decree refers to capital introduced from outside Chinese mainland (including capital from Hong Kong, Macau and Taiwan) and capital from outside the district but inside the country which is invested in the new project within the boundary of the Chancheng District (including project directly under the municipality and project in Foshan National Hi-tech Industries Development Zone).

4. Reward Criteria
(1) If the introduced foreign investment project has an investment amount between USD$ 1 to 3 million (including USD$1 million), the recommender shall be awarded an amount equivalent to 0.3 per cent of the actual invested capital (the registered capital of the foreign-funded enterprise actually in place, same hereinafter) within a year when the introduced foreign investment project is completed and put into production and operation after its capital verification. If the introduced domestic investment project has an investment amount of RMB
8 to 24 million (including RMB8 million) and the proportion of fixed assets generated from the investment is over 50 per cent, the recommender shall be awarded an amount equivalent to 0.3 per cent of the actual invested capital (the registered capital of the domestic enterprise, same hereinafter) within a year when the enterprise is put into production. 
(2) If the introduced foreign investment project has an investment amount between USD$ 3 to 10 million (including USD$3 million), the recommender shall be awarded an amount equivalent to 0.5 per cent of the actual invested capital within a year when the project is completed and put into production and operation after its capital verification. If the introduced domestic investment project has an investment amount of RMB
24 to 80 million (including RMB24 million) and the proportion of fixed assets generated from the investment is over 50 per cent, the recommender shall be awarded an amount equivalent to 0.5 per cent of the actual invested capital within a year when the enterprise is put into production. 

(3) If the introduced foreign investment project has an investment amount of USD$10 million or more, the recommender shall be awarded an amount equivalent to 0.8 per cent of the actual invested capital within a year when the project is completed and put into production and operation after its capital verification. If the introduced domestic investment project has an investment amount of RMB80 million or more and the proportion of fixed assets generated from the investment is over 50 per cent, the recommender shall be awarded an amount equivalent to 0.8 per cent of the actual invested capital within a year when the enterprise is put into production. 

(4) If the introduced investment project is run by a world top 500 corporation, the recommender shall be granted another RMB300,000 in addition to reward stipulated in the above terms.

5. Source of Incentive Reward
To be shared by the government of Foshan City and Chancheng District in proportion to their tax revenue. The reward shall be advanced by the public finance of Chancheng District and shall be squared up by the municipal and district finance at the end of the year.

6. Reward Application
(1) While recommending a project, the recommender shall take from the Service Center for the Promotion of Investment of Chancheng District the Registration and Recording Form for the Recommender Attracting Investment to Chancheng District, Foshan City to fill in, which, upon approval of all parties of the investment and the management departments of the premises or the industrial zone where the project is located, shall be handed over to the Service Center for the Promotion of Investment of Chancheng District for the record.

(2) Within one year after the foreign capital is actually in place and the enterprise is completed and put into production and operation after capital verification, or within one year after the enterprise with introduced domestic capital outside the district is put into production, and the proportion of its fixed assets generated from the investment exceeds 50 per cent, the recommender shall file a written application for reward to the government, offices or management departments where the project is located, fill in the Reward Application Form for the Recommender Attracting Investment to Chancheng District, Foshan City, which shall be handed over to the management departments of the premises or industrial zone where the project is located for endorsement of affirmative opinions, and submit the following materials at the same time:

1.The Registration and Recording Form for the Recommender Attracting Investment to Chancheng District, Foshan City.
2. A copy of the applicant’s ID card (the original is needed for inspection in the process of examination and verification). 
(3) While endorsing affirmative opinions on the recommender, the management departments of the premises or industrial zone where the project is located is responsible for submitting the following materials to the Service Center for the Promotion of Investment of Chancheng District: 

1. A copy of the business license of the investment enterprise.
2. A copy of the capital verification report of the foreign-funded enterprise or the project with domestic investment issued by a certified public accounting firm registered under P.R.C. (the original is needed for inspection in the process of examination and verification).

3. A copy of the fixed assets appraisal report of the project with domestic investment issued by a certified public accounting firm registered under P.R.C. (the original is needed for inspection in the process of examination and verification).
7. Examination, Verification and Granting of Reward
(1) After examination and verification, the leading group for the promotion of investment of Chancheng District will confirm the reward qualification of and reward amount for the recommender, which shall be submitted to the leading group for the promotion of investment of Foshan City for examination and approval before the Service Center for the Promotion of Investment of Chancheng District granting the reward to the recommender and paying individual income tax for him.
(2) If there is only one recommender, all reward goes to him. If there are two or more recommenders, the distribution of the reward shall be resolved through their own consultation and a reward distribution agreement should be handed in at the same time when they are filing their application. 
(3) This decree is only applicable to awarding the recommender. Investment projects without the introduction of the recommender are not entitled to the reward.
(4) For projects with domestic investment, the reward shall be paid by RMB. For foreign investment projects, the reward, upon approval, shall be converted into and paid by RMB at China’s foreign exchange rate on that day.
8. The project involving follow-up injection of capital and enlargement of production on the basis of the original enterprise and the real estate investment project are excluded from the reward range of this decree for the time being.
9. The introduced investment of the town (sub-district), district and city within the functional scope of functionaries does not apply to this decree.
10. Anyone who obtains the reward by deceitful means, once confirmed, will be punished according to law and the reward shall be seized and reclaimed. .
11. The detailed rules for the implementation of this decree shall be separately formulated.
12. The Bureau of Economy and Trade of Chancheng District shall be responsible for the interpretation of this decree.

13. The decree shall take effect as of the date of promulgation. Any investment in Chancheng District after January 1st, 2004 which accords with the above relevant terms all falls within the reward range of this decree.

Attachments:

1. Registration and Recording Form for the Recommender Attracting Investment to Chancheng District, Foshan City
2. Reward Application Form for the Recommender Attracting Investment to Chancheng District, Foshan City

Attachment 1:
Registration and Recording Form for the Recommender Attracting Investment to Chancheng District, Foshan City

Date:

Recommender

 

Name and Number of the Identity Certificate

 

Work Unit or Legal Address

 

Contact Telephone Number

 

Project Name

 

Form of Investment

 

Name of the Investor(s)

 

Project Content

 

Gross Investment of the Project

 (million USD)

(Million RMB)

Foreign Investment of the Project

(million USD)

Registered Capital of the Project

 (million USD)

(Million RMB)

Approval Opinion of the Investment Party on the Qualification of the Recommender

 

Opinion of the Town (Sub-district) or Office for Attracting Investment of the Industrial Zone where the Project Is Located

 

Opinion of the Leading Group for the Promotion of Investment of Chancheng District

 


Notes: This form, after being endorsed with opinions by the investment party, the town (sub-district) or office for Attracting Investment of the industrial zone, shall be submitted to the leading group for the promotion of investment of Chancheng District for examination and verification before being handed over to the Service Center for the Promotion of Investment of Chancheng District for the record. The recommender, all parties of the investment and the Service Center for the Promotion of Investment of Chancheng District shall keep a counterpart of this form respectively.

Attachment 2:

Reward Application Form for the Recommender Attracting Investment to Chancheng District, Foshan City

Date:

Recommender

 

Investment Party

 

Type of Investment

□ domestic investment

□Foreign Investment

Type of Project

□ Productive Project □ Logistics and Transportation

□ Commerce and Trade □ Catering Industry and Tourism

□ Agricultural Development □ Others

Project Name

 

Amount Attracted

□ Gross Investment

 

□ Registered Capital

 

Proportion of Reward to Investment

 

Currency

 

Amount

 

Documents to Be Submitted

□ Reward Application Form for the Recommender Attracting Investment to Chancheng District, Foshan City

□Registration and Recording Form for the Recommender Attracting Investment to Chancheng District, Foshan City.

□Business Registration Certificate

□Capital Verification Report issued by the Certified Public Accountant

□Fixed Assets Appraisal Report issued by the Authorized Statutory Intermediary

□Other Documents

Launch Date of the Project

 

 

 

Date When the Project Is Completed and Put into Production (Open Business)

 

Endorsement of Investment Party of the Project

 

Remarks

 

Reward Proportion Shared by District Finance

 

Reward Amount Contributed by District Finance

 

Reward Proportion Shared by Municipal Finance

 

Reward Amount Contributed by Municipal Finance

 

Opinion of the Town (Sub-district) or Office for Attracting Investment of the Industrial Zone

 

Opinion of the Service Center for the Promotion of Investment of Chancheng District

 

Opinion of the Leading Group for the Promotion of Investment of Chancheng District

 

Opinion of the Leading Group for the Promotion of Investment of Foshan City

 

 

 

 

 

 

 

 

 

 

 

Notes: Reward winner shall pay relevant taxes in accordance with laws and regulations of P.R.C..