A circular on supporting measures for industries toinvest in Yichang by Yichang people's government office

Yichang People’s Government Office [2021] No. 14

The people's governments of all counties, cities and districts, all departments of the municipal government and all directly affiliated institutions:

Supporting Measures for Industries to Invest in Yichang has been approved by Yichang People's Government and is now issued to you, please act in accordance with it.

　　Yichang People's Government Office

　　 March 12, 2021

Supporting Measures for Industries to Invest in Yichang 

Article 1.In accordance with relevant laws and regulations, these measures are formulated based on Yichang's actual situation to further increase investment, build a modern industrial system with distinctive features, outstanding advantages and ecological efficiency, and promote economic transformation and leapfrog development.

Article 2.The Measures are applicable to investment projects which are registered in Yichang (including Yiling District) in line with the city's industrial development, with the status of independent legal entity and promise not to change the tax liability for at least 10 years.

Article 3.For the newly-introduced “Standard-reaching Land” of land-supplying industrial projects, support shall be granted to those who meet the conditions for obtaining land transfer and the requirements for the land use based on the fact that the corresponding planning indicators and fixed asset investment intensity indicators are checked and ratified in acceptance of the project plan. Support funds are shared by the municipal and district governments in proportion to their fiscal capacities, and the support amount and cashing procedures shall be negotiated between the district government and the project party.

For projects that have been completed and put into production within 2 years from the date of agreement signing with the fixed asset investment reaching over 200 million yuan (including 200 million), a support of no more than 6% of its actual fixed asset investment totaling no more than 50 million yuan shall be granted. For projects that have been completed and put into production within 2 years from the date of agreement signing with the fixed asset investment reaching over 20 million yuan (including 20 million) but less than 200 million yuan, a support of no more than 4% of its actual fixed asset investment shall be granted. Support funds are paid by district governments, and the amount and cashing procedures are negotiated between the district governments and the project party.

For projects that have been put into production within 5 years from the date of agreement signing with annual sales revenue reaching over 100 million yuan (including 100 million) but less than 500 million yuan, an annual logistics subsidy of no more than 4% of its sales revenue totaling no more than 2 million yuan shall be granted for the first 3 years from the date of achieving the sales revenue within the five years. For projects that have been put into production within 5 years from the date of agreement signing with annual sales revenue reaching over 500 million yuan (including 500 million), an annual logistics subsidy of no more than 6% of its sales revenue totaling no more than 5 million yuan shall be granted for the first 3 years from the date of achieving the sales revenue within the five years. Support funds are paid by district governments, and the amount and cashing procedures are negotiated between the district governments and the project party.

Article 4.For the newly-introduced “Standard-reaching Land” of land-supplying industrial projects with taxes including annual value-added tax (VAT) and corporate income tax totally paid over 3 million yuan (including 3 million), and for the newly-introduced non-land-suppling industrial projects with taxes including VAT and corporate income tax totally paid over 1 million yuan (including 1 million), during the 5 consecutive years from the date of achieving the tax payment target, a no-more-than 100% support shall be granted for the first three years and a no-more-than 50% support shall be granted for the next two years, based on the district’s actual gaining from VAT and corporate income tax paid. This support policy is valid for 7 years from the date of agreement signing. The amount of support funds and cashing procedures are negotiated between the district governments and the project party.

Article 5.If an enterprise moves its headquarters registration place from other cities to Yichang or establishes a regional headquarters in Yichang, and its total annual VAT and corporate income tax paid reach over 3 million yuan (including 3 million), during the 5 consecutive years from the date of achieving the tax payment target, a no-more-than 100% support shall be granted for the first three years based on the district’s actual gaining from VAT and corporate income tax paid; a no-more-than 50% support shall be granted for the next two years based on the city’s and district’s actual gaining from VAT and corporate income tax paid. This support policy is valid for 7 years from the date of agreement signing. The amount of support funds and cashing procedures are negotiated between the district governments and the project party.

Article 6.For newly-introduced industrial projects with a fixed asset investment of over 500 million yuan (including 500 million), or newly-implemented projects with the annual tax revenue of over 50 million yuan (including 50 million) within 3 years, if there is a real and feasible need for the investor, a support of no-more-than 20% government equity fund totaling no more than 100 million yuan can be granted for no more than 5 years. In case of the government equity withdrawal, it can be preferentially transferred to the project owner with proper discount, the specific consideration shall be determined by both parties through negotiation.

For newly-introduced equity investment management institution projects with a capital scale of over 500 million yuan (including 500 million), starting from the investment and operation year, a 100% support for the first 3 years and a 50% support for the next 2 years shall be granted based on the district’s actual gaining from VAT and corporate income tax paid. The amount of support funds and cashing procedures are negotiated between the district governments and the project party.

Article 7.For the management and scientific talents (no more than 15 people in each enterprise) of newly-introduced enterprises and newly settled corporate headquarters, within 5 years from the year when their actual annual payment of VAT and corporate income tax reaches over 3 million yuan (including 3 million), a 100% support of no more than 1 million yuan per person per year shall be granted based on the district’s actual gaining from their personal income tax paid in Yichang. The amount of support funds and cashing procedures are negotiated between the district governments and the project party. The local government of the project shall assist enterprises in recruiting personnel, securing talent housing for employees and their children’s education and other supporting services.

Newly-established or newly-accredited innovation platforms, such as technology innovation centers, engineering technology innovation (research) centers, key (engineering) laboratories, enterprise technology centers, at the national, provincial and municipal levels shall be granted a reward of 2.5 million yuan, 0.2 million yuan and 0.1million yuan respectively by the municipal finance. A reward of 0.1 million yuan shall be granted to newly-introduced technology enterprises if they are accredited as national high-tech enterprises.

Article 8. Major supports based on “case-by-case” mechanism shall be granted to projects invested by the world’s top 500 enterprises, China’s top 500 enterprises, central enterprises, large state-owned enterprises, the world’s top 50 chemical enterprises and listed companies on the main board, which include high-tech industrial projects, strategic emerging industry projects, investment projects of national high-tech enterprises, industrial projects that extend the industrial chain, broaden the industrial scope and promote the development of industrial clusters, such as supplementing, extending and creating chains, major modern service industries, especially production-oriented service projects, major talent projects and high-level talent leading projects, export-oriented industrial projects that promote the development of Yichang Comprehensive Bonded Zone, cultural tourism and health care projects and major headquarters economic projects.

Article 9.Foreign investment projects shall be supported in line with the Measures to Encourage Foreign Investmentin Yichang (Yichang People’s Government Office [2019] No. 33).

Article 10.Foreign-funded projects and domestic-funded projects enjoy the same support policies. Supports shall be based on the principle of higher-level granting with no repeated ones if the same project or the same matter meets different clauses of the above measures or other municipal policies.

Article 11.The power of interpretation of the Measures shall be vested in Yichang Investment Promotion Bureau.

Article 12. These measures shall be valid for 3 years from the date of issuing. Projects signed during the validity period can enjoy support policies regardless of the validity period. Measures shall follow the new regulations of higher-level state organs during the implementation period. All counties and cities can refer to these measures in light of local conditions.

　　Issued by Yichang People's Government Office on March 15, 2021