Zhanjiang's preferential policies for investment 

1. (Article 1:)Scope of Application

Any investor who supports projects in industry, commerce and trade, tourism, finance and other fields in Zhanjiang's Chikan, Xiashan, Mazhang and Potou districts, Zhanjiang Economic and Technological Development Zone (Donghai Island Economic Development Test Zone), Guangzhou (Zhanjiang) Industrial Transfer Park, Zhanjiang Fenyong Economic Zone (Fenyong Overseas Chinese Farms) and Lingang Industrial Park, with industrial and commercial registration and tax administration registration in the above mentioned areas, shall enjoy a number of support policies in addition to national, provincial, and municipal preferential policies for investment.

2. (Article 2:)Priorities

Zhanjiang encourages investment in five main industries, that is, steel, petrochemicals, paper, tourism, and logistics, and five new industries of marine, new energy, electronics, pharmaceutical, and new materials. Five featured industries -- agriculture, furniture, household appliances, food, and culture – along with other projects that make great tax contributions will also be given priority.

3. Fiscal and tax supporting policies

Article 3: Support for industrial projects 

1. Enterprises, which have new industrial projects and generate at least 1 million yuan ($160,900) in tax annually, shall enjoy refunds for enterprise development for five consecutive years from the first profit-making year. During the first two years, enterprises will be subsidized at 100 percent of the local retention portion of their paid individual income tax; and during the remaining three years, they will be subsidized at 50 percent of the local retention portion of their paid individual income tax.

Enterprises in strategic emerging industries, such as high-end new-type electronic information, LED, new materials, biology, and energy conservation and environmental protection, will be refunded with 100 percent of the local retention portion of their own individual income tax for five consecutive years from the first profit-making year.

The funds given to enterprises in the next year are from municipal and district-level finance bureaus by a ratio based on the fiscal system.

2. Enterprises, which have new industrial projects, shall enjoy refunds of 10 percent of the local retention portion of their paid value-added tax and business tax for five consecutive years from the start of operations. Fortune Global 500 companies, which invest in foreign investment projects, shall be refunded 20 percent of the local retention portion of their paid value-added tax and business tax for five consecutive years from the start of operations.

The funds given to enterprises in the next year are from municipal and district-level fiscal administrations by a ratio based on the fiscal system.

3. Zhanjiang encourages areas under its jurisdiction, industrial parks, and industrial cluster areas to legally develop land and industries, and attract investment to develop contiguous industrial parks or industrial clusters, and build standard plants:

3.1 Land-transfer fees that are turned in to the national treasury by project owners are refunded to management committees of industrial parks (industrial cluster areas) for infrastructure construction after deducting the payment and operating expenses according to relevant policies.

3.2 Project owners shall pay support fees for urban infrastructure construction in full, except those projects in the provincial industrial transfer park. After deducting 4 percent of the payment as handling fees, 50 percent of the remaining sum shall be refunded to management committees of industrial parks (industrial cluster areas) by the municipal finance bureau for infrastructure construction.

3.3 Areas under Zhanjiang's jurisdiction, industrial parks, and industrial cluster areas that develop contiguous industrial parks or cluster areas shall get financial support from the municipal finance bureau for inviting investment and perfecting the infrastructure.

3.4 Areas under Zhanjiang's jurisdiction, industrial parks, and industrial cluster areas that build standard plants for rent shall be subsidized with water, power and gas use, as well as the plant's rent and other relevant fees.

Article 4: Support for commodity circulation projects

 1. Any domestic and international large enterprises or influential intermediary service institutions that set up enterprise headquarters (or regional headquarters), settlement centers, research and development centers, data centers, business processing centers, procurement centers, and logistics distribution centers, shall be preferentially arranged in corresponding cluster areas and enjoy one-time rewards for their settlement provided by the municipal finance bureau.

2. Modern service enterprises are encouraged to develop on a large scale. Modern service enterprises that are managed by groups of enterprises shall enjoy convenience when organizing and performing their industrial and commercial registration and support of a financial fund.

Article 5: Support for tourism projects

Tourism projects include: tourist attractions; starred hotels; travel agencies; travel vehicles and vessels; cultural, recreational and sport facilities; public travel service facilities; and other tourism projects identified by relevant departments of the municipal government.

New tourism projects shall be refunded 30 percent of the local retention portion of their paid income tax for reproduction during the following three years from their start of operations. New tourism projects with investments of over 100 million yuan shall be refunded 80 percent, 50 percent, and 30 percent of the local retention portion of their paid business tax during the following three years from their operation, respectively. The capital is refunded by municipal and district-level finance bureaus by a ratio according to the fiscal system in the next year.

Article 6: Support for financial projects

Financial institutions refer to banks, securities companies, insurance companies, fund management companies, futures companies, trust companies, etc. The new financial institutions in urban districts shall enjoy allowances for organizational costs.

1. Financial institutions that set up headquarters in the downtown area shall enjoy one-time allowances of 1 percent of their registered paid-in capital, with a minimum of 1 million yuan and a maximum of 5 million yuan (headquarters of financial institutions refer to banks, securities companies, insurance companies, fund management companies, futures companies and trust companies, which have legal personalities and are registered in Zhanjiang as well).

2. Financial institutions that set up regional headquarters or business headquarters in the urban district shall enjoy one-time allowances worth 1 million yuan.

3. Financial institutions that set up business departments or subsidiary companies in the urban district shall enjoy one-time allowances worth 300,000 yuan. Financing guarantee companies and small loan companies which have legal representation in the urban district, shall enjoy one-time allowances worth 300,000 yuan. Financing guarantee companies and small loan companies that set up branches in the urban district shall enjoy one-time allowances worth 100,000 yuan.

Article 7: New industrial, commercial and trade enterprises in the urban district, especially those in strategic emerging industries such as new-type electronics, LED, new material, biology, energy conservation and environment protection, shall enjoy priority of application for special funds in technological research and development, renovation, and innovation, brand development, platform construction, among others.

Article 8: For projects that are introduced by the municipality or districts and located in districts, the ratio of the retention portions of tax shall comply with the current fiscal management system delivered by the municipal government to district-level governments. In the event that the fiscal system is adjusted, the ratio of retained portions of tax shall be adjusted accordingly; affairs related to projects transferred between districts shall be dealt with through negotiation between the two districts. 

Article 9: Enterprises are encouraged to get listed, and the enterprises with headquarters in Zhanjiang shall receive one-time awards of 3 million yuan.

Article 10: Newly added agricultural projects are subject to stipulations in Article 3.

4. Fees Policy

Article 11: Any administrative charging item that is not approved by national and provincial administrations shall not collect fees. Compulsory training that is not approved by national and provincial administrations and does not obtain Guangdong’s charging permit (compulsory training fees) at local price bureaus shall not collect fees.

Article 12: Enterprises that establish a new project pay minimum service fees to related agencies, such as environmental protection and construction bureaus, before the project is put into operation after getting approval; and minimum agency fees to advisory organs, in accordance with the standards approved by the National Development and Reform Commission or provincial price bureaus.

Article 13: Enterprises that enter provincial-level industrial transfer park pay revenue from administrative and institutional fees within stipulated period according to related policies (YJ [2009] No 151 Document): the first 14 items of revenues from administrative and institutional fees shall be exempted. In the condition that provincial standards of other administration business charges float, a minimum shall be paid.

Article 14: Operational service fees for enterprises that enter the provincial transfer industrial park shall be collected according to the regulations of Guangdong Transfer Industrial Park (YJ [2009] No 176 Document): eight charges have been halved (the price ceilings) and are subject to government pricing or government guidance pricing; other operational service fees are subject to government pricing or government guidance pricing according to the minimum standards.

Article 15: Enterprises of commercial and logistics industries pay administrative service fees according to the minimum standards (unless otherwise stipulated by the law, regulations or national policies).

5. Incentives

Article 16: The first introducer (referring to an organization, institution, or individual that introduces and contributes to investment in Zhanjiang, excluding staff in the six branches of Zhanjiang Municipal Investment Invitation Bureau), who plays a key role as a go-between in inviting investments, shall enjoy one-time awards in accordance with the direct investment and tax contributions of the introduced projects.

5.1 Incentive Standard

The first introducer shall be awarded 100,000 yuan if he introduces a project with an actual fixed investment of 100 million yuan and above but less than 200 million yuan; the first introducer shall be awarded 200,000 yuan if he introduces a project with an actual fixed investment of more than 200 million yuan and above but less than 300 million yuan. Similarly, the first introducer shall be awarded 1 million yuan if he introduces a project with an actual fixed investment of more than 1 billion yuan and above. The awards for any single project shall not exceed 1 million yuan.

5.2 Source of Awards

Funds for rewarding the first introducer who introduces projects to settle in urban districts are from municipal and district-level authorities by a ratio of their retention portions of taxation; if the projects are settled in counties, the awards will be drawn from the counties.

The specifics of conditions, application procedures, and redemption of incentives are formulated by the local fiscal authorities.

6. Land Policy

Article 17: Land for industrial projects in industrial parks is transferred by bidding, auction and listing according to the lowest control standards of the land transfer price stipulated by the State. Projects with a large investment, high tax contribution and significant social benefits are subject to negotiation and more favorable policy.

Article 18: Foreign-funded projects encouraged by the State shall be given priority in land use. The base price of land transfer shall be 70 percent and above of the relevant price set in the National Bottom Price Standard for Industrial Land Transfer.

Article 19: Projects, conforming to the industrial development planning of the industrial transfer park, or listed in the encouraged projects in the Guidance Directory of Guangdong's Industrial Restructuring, or with high intensity of land use, are allowed to set the base price of land transfer at 70 percent and above of the relevant price stipulated in the National Bottom Price Standard for Industrial Land Transfer.

Article 20: Priorities in land use shall be given to the city's key projects or breakthrough projects of private companies. Industrial projects of private enterprises with a high intensity of land use, which are listed in the Catalogue of Priority Industries of Guangdong, and industrial projects which focus on the preliminary working of agriculture, forestry, animal husbandry and fishery products listed in the Catalogue of preliminary working of Agriculture, Forestry, Animal Husbandry and Fishery Products of Guangdong, can set the base price of land transfer at 70 percent and above of the relevant price stipulated in the National Bottom Price Standard for Industrial Land Transfer.

7. Quality services

Article 21: One stop acceptance. Both domestic and foreign investors can go through formalities and handle documents and licenses on related windows in the municipal administrative service center.

Article 22: One package examination and approval. Enterprises in Zhanjiang will enjoy one package and parallel examination and approval in the municipal administrative service center. Formalities, within the power of examination and approval at both city and district levels, will be completed in two or three working days for projects conforming to industrial policies with complete materials.

Article 23: Full services. Six investment promotion bureaus, responsible for supporting the industries of steel and petrochemical engineering, strategic emerging industries, modern service industries, tourism industries and State-owned enterprises respectively, take charge of policy advice, preliminary site selection and project negotiations for related investment projects, go through formalities for enterprises and provide full services for projects. The management committee of industrial parks will provide a complete package of services for the projects in the industrial transfer park and industrial parks.

8. Others

Article 24: Major projects are subject to negotiation and more favorable policy according to their investment volume and tax contribution.

Article 25: Counties can make their own preferential policies based on the relevant articles herein.

Article 26: These preferential policies will be valid for five years after being released.

Article 27: The Economic and Information Bureau of Zhanjiang is responsible for explaining these preferential policies.

Notice: 

1. First list of 14 administrative services in the provincial industrial transfer park exempted from charges of local administrative affairs (YJ [2009] No 151).

2. Eight operational service fees that are halved (the price ceilings) and subject to government pricing or government guidance of pricing stipulated in YJ [2009] No 176 Document.