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Agricultural Development Bank of China
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Chongzuo City

June 19, 2019


Abstract : Summary of Policies for Tax Preferences in the Notice of Chongzuo Municipal People's Government on Printing and Distributing Policies and Measures on Promoting the Construction of Chongzuo Industrial Park in Cross-Strait Industrial Cooperation Zone

I. Summary of Policies for Tax Preferences

Summary of Policies for Tax Preferences in the Notice of Chongzuo Municipal People's Government on Printing and Distributing Policies and Measures on Promoting the Construction of Chongzuo Industrial Park in Cross-Strait Industrial Cooperation Zone (CZF [2018] No. 5)

Awards and subsidies will be made to the value-added tax paid by logistics and processing enterprises. For logistics and processing enterprises with the raw materials from and markets in overseas countries, the part of value-added tax kept by Chongzuo City shall be subject to a 50 percent rebate; for those enterprises with the raw materials from or markets in overseas countries, the part of value-added tax kept by Chongzuo City shall be subject to a 25 percent rebate, which will be made once a year for three consecutive years. According to an evaluation of the total investment, output value and tax contribution of enterprises, a certain number of enterprise senior executives shall receive individual income tax subsidies. Based on the individual income tax invoices issued to the beneficiary paying the individual income tax locally, a 50 percent rebate on the part of the paid individual income tax kept by the local finance shall be provided for five years.

II. Summary of Policies for Fiscal Support

Summary of Policies for fiscal Support in the Notice of Chongzuo Municipal People's Government on Printing and Distributing Interim Measures for Investment Promotion in Chongzuo (CZF [2016] No. 30)

For the port processing and manufacturing projects, modern agriculture and modern services projects, industrial manufacturing projects and major real estate projects, urban complex or travel complex newly settled in Chongzuo City and conforming to relevant provisions, the project owner shall be granted a one-time award and the maximum award for a single project shall not exceed 5 million yuan.

The proportion of basic pension insurance contributions for enterprise employees shall be reduced. Since the date of implementation of the Interim Measures, major investment promotion enterprises newly settled in industrial parks at all levels in Chongzuo shall be granted the proportion reduction of their basic pension contributions from 20 percent to 14 percent in three years.

Excellent Enterprise Award shall be given. Industrial enterprises with the annual revenue of major business exceeding 500 million yuan, 1 billion yuan, 1.5 billion yuan, 2 billion yuan, 3 billion yuan, 5 billion yuan and 10 billion yuan for the first time shall be awarded 100,000 yuan, 200,000 yuan, 300,000 yuan, 400,000 yuan, 600,000 yuan, 1 million yuan and 2 million yuan,  And those winners shall each be given an honorary plaque - Excellent Industrial Enterprise in Chongzuo City. The awarded money shall be used to reward the enterprise leaders.

The agencies and intermediaries who have successfully introduced major investment promotion projects and conform to relevant provisions shall receive a one-time award and the maximum award for a single project shall not exceed 1.5 million yuan.

Summary of Policies for Fiscal Support in the Notice of General Office of Chongzuo Municipal Party Committee of CPC and General Office of Chongzuo Municipal People's Government on Printing and Distributing the Implementation Plan on Strengthening the Construction of Standard Factories in Chongzuo Industrial Parks (CBW [2018] No. 49)

The construction investors shall get support. For factories conforming to construction conditions, subsidies shall be given to the construction investors: 100 yuan/square meter for one-floor factories, 150 yuan/square meter for two-floor factories, 200 yuan/square meter for three-floor factories and 250 yuan/square meter for four-floor or higher factories. The subsidy shall be halved for standard factories of lightweight steel construction.

Enterprises shall be encouraged to purchase standard factories. Subsidy standards: 100 yuan/square meter for one floor, 150 yuan/square meter for two floors, 200 yuan/square meter for three floors, 250 yuan/square meter for four floors or more. The subsidy shall be halved for standard factories of lightweight steel construction. Enterprises that have received purchase subsidies shall not sell the purchased standard factories within five years. For resale in advance, the fiscal subsidies and corresponding value-added gains should be repaid according to relevant provisions.

Support for leasing standard factories shall be improved. In case that the lease term for leasing standard factories exceeds five years, the rent shall be exempted for the first three years and halved for the following two years by the local government. Enterprises that have received the lease subsidies should not sublet the leased standard factories to others within five years.

For the projects settled in standard factories that appear on the list of government statistical departments within three years after production (the year of production is seen as the first year), starting from the year projects listed, an application can be submitted to the local park based on relevant materials such as the tax-paid certificate. Then, the amount equivalent to 100 percent of the part of the paid tax kept by local region shall be granted for three years (incl. the year projects listed), so as to help enterprises in technological transformation and reproduction on an enlarged scale.

Summary of Policies for Fiscal Support in the Notice of General Office of Chongzuo Municipal People's Government on Printing and Distributing Policies on Accelerating the Development of Forest Products Processing Industry in Chongzuo (CZBF [2017] No. 71)

Chongzuo timber distribution and trading center shall be set up to encourage the timbers inside and outside Chongzuo City and timber resources imported through Beibu Gulf and Chongzuo Port to trade here. For logistics enterprises settled in Chongzuo timber distribution and trading center and with the annual timber trading volume of 60,000 cubic meters or more, their venue rental shall be exempted for the first three years and halved for the following two years.

The highway tolls on the international TEU (size: 20 feet, 40 feet) vehicles transporting raw materials and accessories for timber processing from Beibu Gulf and Dongxing City to Chongzuo timber distribution and trading center shall be halved, and 50 percent of the tolls shall be subsidized by the local government of the enterprise for three years.

The forestry and relevant production enterprises settled in China-Thailand (Chongzuo) Industrial Zone (City Industrial Zone) and with an annual comprehensive tax payment of 100,000 yuan/mu or more shall be awarded 10 percent of the annual tax payment for no more than three years.

Summary of Policies for Fiscal Support in the Notice of General Office of Chongzuo Municipal People's Government on Printing and Distributing Trial Measures of Preferential Policies on Implementing the Doubling Program of Processing Trade in Chongzuo (CZBF [2018] No. 36)

For the newly settled processing trade enterprises with fixed investments of 50 million yuan or more, 100 million yuan or more, 200 million yuan or more, they shall be rewarded 1 million yuan, 2 million yuan and 3 million yuan respectively, after they are identified to have started operation and generated taxes.

The expanded processing trade project with an annual investment of over 20 million yuan shall be awarded 1.5 percent of the total fixed investments.

The processing trade enterprises that meet the national industry policies and emission standard for environment protection shall receive a water and electricity subsidy of 2 percent of the contributions to local tax revenue, and the subsidy shall not exceed 1 million yuan for a single project.

Within three years since the enterprises are put into production, the taxes generated from the production and processing links of the processing trade enterprises shall be subject to a 50 percent rebate on the enterprises' contribution to local VAT revenue.

The domestic logistics expenses of the processing trade enterprises shall be subject to 10 percent rebate on the freight rate approved by transportation departments, so as to lower the logistics expenses.

Before the opening of long-distance gas pipelines, the processing trade enterprises that use liquefied natural gas at the initial stage of operation will receive a price subsidy of 0.20 yuan/cubic meter according to their gas consumption. 50 percent rebate on the actual expenses for the entry laying of natural gas pipelines shall be ensured.

The original processing trade enterprises that introduce one leading industrial enterprise (leading enterprise) or three or more upper- and down-stream enterprises and similar enterprises, with over 200 million yuan fixed investments in total, shall be awarded 3 million yuan for building infrastructures of the industrial cluster, after the introduced enterprises complete construction and start operation.

Newly established enterprises in Chongzuo that provide direct industrial matching for local processing trade enterprises and have an industrial matching rate (output value) of 60 percent shall be regarded as the gradient transfer enterprises in processing trade and enjoy the same subsidies as processing trade enterprises.

The above preferential policies shall be implemented from 2018 to 2020.

III. Summary of Policies for Land Preferences

Summary of Policies for Land Preferences in the Notice of General Office of Chongzuo Municipal People's Government on Printing and Distributing Policies and Measures (Trial) on Promoting the Construction of Nut Processing Park in China-Thailand Industrial Zone (Chongzuo City Industrial Zone) in Chongzuo (CZBF [2016] No. 42)

For nut processing enterprises settled in China-Thailand Industrial Zone (Chongzuo City Industrial Zone) before 2018 (the project land must meet relevant requirements in Control Index for Construction Land in Guangxi Zhuang Autonomous Region), they shall receive a subsidy of 38 percent of the actual land price of the project from the municipal government, allocated by the municipal finance bureau for infrastructure construction. From the date the enterprise generates tax revenue, the subsidy funds of the same amount calculated based on the contributions to local revenue shall be fully given to the subsidized enterprises year by year.

Summary of Policies for Land Preferences in the Notice of Chongzuo Municipal People's Government on Printing and Distributing Policies and Measures on Promoting the Construction of Chongzuo Industrial Park in Cross-Strait Industrial Cooperation Zone (CZF [2018] No. 5)

For enterprises settled in the industrial park with the project land meeting relevant requirements in Control Index for Construction Land in Guangxi Zhuang Autonomous Region. From the date the enterprise generates tax, the subsidy funds of the same amount calculated based on the contributions to local revenue (awards and subsidies under other clauses shall be deducted) shall be fully given to the subsidized enterprises year by year. Before December 31, 2025, both the part of urban land use taxes for enterprises' self-use land and real estate taxes for self-use properties kept by local finance shall be awarded to the enterprises, and the municipal parks shall allocate the funds according to the financial systems of the city and the parks.

Summary of Policies for Land Preferences in the Notice of General Office of Chongzuo Municipal People's Government on Printing and Distributing Trial Measures of Preferential Policies on Implementing the Doubling Program of Processing Trade in Chongzuo (CZBF [2018] No. 36)

For processing trade enterprises who complete the construction content of the project agreed upon in the contract and start operation within two years since the date of signing the Transfer Contract of Use Right of State-owned Construction Land and have an annual output value between 50 million yuan (incl.) and 100 million yuan approved by the municipal statistics department, 15 percent of the actual land price of the project shall be given as a one-time award and subsidy; if the annual output value is between 100 million yuan (incl.) to 500 million yuan, 20 percent of the actual land price shall be granted; if the annual output value reaches 500 million yuan or more, 30 percent of the actual land price shall be granted, for the enterprises' infrastructure construction.

IV. Summary of Policies for Financial Support

Summary of Policies for Financial Support in the Notice of Chongzuo Municipal People's Government on Printing and Distributing Interim Measures for Investment Promotion in Chongzuo (CZF [2016] No. 30)

Investment and financing shall be stimulated. For the investment and capital promotion projects of border trade processing and manufacturing industry and industrial manufacturing industry settled in Chongzuo, if the enterprises borrow money from the local financial institutions for construction of production facilities and production, an interest subsidy on the loans that exceed the benchmark interest rate shall be given by the finance department of their taxes for the first three years. The interest subsidy shall be given at 30 percent of the bank benchmark interest rate for the same period of the loan.

Summary of Policies for Financial Support in the Notice of Chongzuo Municipal People's Government on Printing and Distributing Trial Measures of Policies on Vigorously Cultivating Bigger and Stronger Trade and Logistics Enterprises in Chongzuo (CZF [2017] No. 9)

Logistics enterprises within the jurisdiction are encouraged to list in domestic trading venues such as Shanghai Equity Exchange, Shenzhen Qianhai Equity Exchange, Guangxi Beibu Gulf Equity Exchange Co., Ltd. and the National Equities Exchange and Quotations, to raise funds in the capital market directly. The municipal government shall award 200,000 yuan to each listed enterprise and 500,000 yuan to each IPO enterprise.

Summary of Policies for Financial Support in the Notice of General Office of Chongzuo Municipal People's Government on Printing and Distributing Policies on Accelerating the Trade Products Processing Industry in Chongzuo (CZBF [2018] No. 35)

The financing channels shall be further expanded. The processing trade enterprises shall be strongly supported to list in the New Third Board and the regional equity trading markets for financing. For enterprises listed in domestic main-board markets, SMEs board markets or growth enterprises markets, the municipal government shall give a one-time award of 500,000 yuan in addition to the reward by Guangxi Zhuang Autonomous Region.

The above measures shall be valid from 2018 to 2020.

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Keyword: Guangxi-policy

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