Incentive Measures of Sanshui District
2009.11.11

 Article 1. This decree has been formulated for the purpose of encouraging all sectors of the society to take part in our work of attracting investment and expanding the channels for absorbing investment according to the local condition of Sanshui District.

Article 2. Reward Object
(1) Project introducer: the middleman that introduces the trader outside the district with explicit investment intention to settle in Sanshui, and directly assumes the responsibility of supplying contact, introduction, consultation and other services for the trader’s investment behavior, including any enterprise home and abroad, social group, financial organization, company, individual, etc.   

 

 (2) Project intermediary agent: the intermediary institution, recognized by Sanshui District Bureau of Economy and Trade, which provides consultation, introduction, contact and other services for the trader with explicit investment intention, and handles application, examination and approval, registration and other relevant formalities for the project to settle in the district, including any investment consulting company, law office,accounting firm and the like.   

 

This decree is not applicable to the following institutions or personnel: 
1. Units or individuals of the project investment party.


2. National public servants in Sanshui District, staff administered according to or referring to the standard of national public servant, and staff in institution with financial appropriation. 


3. Staff in companies, examination and approval departments and departments for attracting investment directly under or subordinate to the district or town.


4. Other institutions or personnel reckoned as unqualified for the reward after inspection by the examination and approval departments.

 

Article 3. Reward Scope
(1) Productive enterprise projects;
(2) Logistic, large-scale commerce and trade projects;
(3) Other special projects recognized by the district government.

Article 4. Reward Registration
Projects that accords with the following conditions shall be allowed to have reward registration in Sanshui District Bureau of Economy and Trade. 
(1) The introduced project shall be new to investment attraction departments at all levels in Sanshui District before it is brought into the district.  
(2) Starting standard for reward: domestic investment project with an actual investment in fixed assets of RMB
20 million or more, wholly foreign-owned investment project with a registered capital of USD$ 2 million or more, Chinese-foreign joint venture or cooperative project with a registered domestic and foreign capital totaled USD$ 2 million or more after conversion;
(3) From the very beginning of contacting the project, the project introducer or intermediary agent shall have fulfilled the registration and recording formalities in Sanshui District Bureau of Economy and Trade to confirm his identity and role. 

Article 5. Reward Setup
“Project Introducer Reward” shall be set up to reward investment project introducers; and “Project Intermediary Agent Reward” shall be set up to reward project intermediary institutions. Funds needed shall be arranged by the district public finance. 
Article 6 Reward Standard
Domestic investment project is calculated on the basis of the actual investment in fixed assets, while foreign investment project is on the actually utilized foreign capital (capital stated in the capital verification report). For project with investment by stages or has its capital verified by stages, the reward amount shall be based on the investment provided when the project is put into production, the follow-up investments shall not be counted into the reward base number.  

(1) “Project Introducer Reward” shall be calculated at a rate of three thousandths of the investment amount (foreign capital shall be converted into RMB at an exchange rate of the date when the raward is examined and approved).

 

 (2) For introduced domestic investment project, the Project Intermediary Agent Reward shall be calculated at a rate of three thousandths if the project’s actual investment in fixed assets is between RMB20 to 50 million (including RMB50 million); the reward shall be calculated at a rate of four thousandths if the actual investment in fixed assets is between RMB50 to 200 million (including RMB200 million) and five thousandths if it is over RMB200 million.

For wholly foreign-owned investment project, if it has a registered capital equaling USD$ 2 to 12 million (including USD$ 12 million), the reward shall be calculated at a rate of five thousandths of the foreign investment in actual use (capital stated in the capital verification report); if the registered capital is over USD$ 12 million, the reward shall be calculated at a rate of eight thousandths of the foreign investment in actual use (capital stated in the capital verification report)(foreign currencies shall be converted into RMB at an exchange rate of the date when the reward is examined and approved). For Chinese-foreign joint venture or cooperative project, the reward, according to the contribution proportion agreed by the Chinese and foreign parties, shall be calculated separately, following the foreign investment reward standard for its foreign capital, and the domestic investment reward standard for its Chinese capital.

 

(3) If the introduced investment is from a world top 500 corporation or a domestic listed company, and is over RMB50 million for its domestic investment or over USD$ 6 million for its foreign registered capital, the introducer, in addition to rewards stipulated in (1) and (2), shall be granted another one-off reward of RMB 100000

 

(4) The upper limit of the reward of a single project is RMB1.5 million. If the project has done special contribution to the district, according to the actual situation of the project, additional reward can be given upon approval by the district government.
Article 7. Reward Application
Project introducer or intermediary agent that considers himself eligible for the reward can apply to Sanshui District Bureau of Economy and Trade in written form.  
(1) Project introducer shall submit the following documents:
1. A copy of his identity card or business license of his unit;

2. Sanshui District Project Introducers Registration Form;
3. A letter of confirmation of the project introducer issued by the investment party;
4. Capital verification report or other capital contribution certificates of the introduced project issued by the accounting firm. 
5. Other documents required by Sanshui District Bureau of Economy and Trade.
(2) Project intermediary agent shall submit the following documents:
1. Business license and corporate legal person code certificate of the intermediary company;
2. Sanshui District Project Intermediary Companies Registration Form;
3. A letter of confirmation of the project intermediary company issued by the investment party;
4. Capital verification report or other capital contribution certificates of the introduced project issued by the accounting firm. 
5. Other documents required by Sanshui District Bureau of Economy and Trade.

Article 8. Reward Examination and Approval
Sanshui District Bureau of Economy and Trade shall carry out initial examination of the applicant’s qualification, the project, reward amount and so on before reporting to the district government for examination and approval.

Article 9 Reward Granting Procedure
(1) After the introduced project is officially put into production and operation, the district government shall pay the reward in a lump sum.
(2) Project introducer and intermediary agent who are granted the reward shall pay taxes in accordance with laws and regulations. 

Article 10. Units and personnel concerned shall be investigated for their legal liabilities in accordance with law if anyone obtains the reward by deceitful means.

Project introducer or project intermediary agent who cheated the investor by deceitful methods or did any behavior that damaged the image of Sanshui District, once confirmed, Sanshui District Bureau of Economy and Trade shall have the right to criticize and warn him and, upon approval by the district government, annul his qualification for applying the reward.   

Article 11. Sanshui District Bureau of Economy and Trade, Foshan City shall be responsible for the interpretation of this decree.

 

Article 12. This decree shall come into effect as of June 1st, 2005, with a period of validity of three years. Trial Incentive Measures for Rewarding Attraction of Investment in Sanshui District, Foshan City (San Fu [2003] No. 24) and Supplementary Provisions of the Trial Incentive Measures for Rewarding Attraction of Investment in Sanshui District, Foshan City (San Fu [2004] No. 77) shall be abrogated at the same time.