Several Opinions on Promoting the Development of Headquarters Economy
Office Occupancy Support
A headquarter enterprise newly relocated to Dongguan, if purchases or rents office buildings, will be subsidized depending on its financial contribution to the local. For purchase of office buildings, a lump sum of subsidy equivalent to 5% of the total purchase price, with a maximum not exceeding 10 million Chinese yuan, will be given. For lease of office buildings, every year a subsidy equivalent to 50% of the lease contract amount, with a maximum not exceeding 2 million Chinese yuan, will be given, but such rent subsidy is only valid for 3 consecutive years at most. Lease (or sub-lease), sale or change of purpose of such office occupancy is not allowed.
Support to Talents
Talent incentive mechanism will be established. Senior executives of a headquarter enterprise will be rewarded in full their individual income tax payment for income from wages and salaries and the local retention part of their individual income tax payment for sci-tech achievement transformation. A senior executive without his/her own residency, will be given monetary subsidy depending on the headquarter enterprise’s financial contribution to the local. To be more specific, a senior executive will be subsidized with 50% of the purchase price (but only 10 senior executives at most of an enterprise can enjoy such entitlement), with a maximum not exceeding 2 million Chinese yuan, if he/she buys a residency, or with 3 thousand Chinese yuan every month, with such rent subsidy lasting not more than 3 years, if he/she rents a residency. In addition, the children of a senior executive will be directly arranged to attend the first-class public elementary and secondary schools at municipal or higher level and offered free compulsory education.
Development Financing Support
A headquarter enterprise will be given interest subsidies depending on its financial contribution to the local. For working capital loans newly increased in last year, a subsidy equivalent to 30% of the amount of interests calculated at LPR, with a maximum not exceeding 3 million Chinese yuan, will be given. A headquarter enterprise planning to be listed will be directly given financing incentive. A headquarter enterprise seeking financing by IPO on a major stock market either at home or abroad will be rewarded 0.5% of the funds raised, with a maximum not exceeding 8 million Chinese yuan. A non-listed headquarter enterprise, if successfully issues direct debt financing instruments (corporate bonds, debentures, asset securitization, short-term financing bonds, medium-term notes, etc.), will be given interest subsidies equivalent to 2% of the financed amount, up to an aggregate amount of 1 million Chinese yuan.
Special Supportive Measures for Major and Large Projects
For an introduced major or large project that plays a significant supporting role in Dongguan’s economic and social development, special supportive measures will be studied and formulated in view of individualized demands and on a case-by-case basis.
Measures of Dongguan City for Implementation of Rewards for Talents with Economic Contributions to Industrial Development and Sci-tech Innovation
An industrial innovation talent will be rewarded by the municipal finance in full his/her individual income tax payment for income from wages and salaries and up to 80% of the local retention part of his/her individual income tax payment for sci-tech achievement transformation, with a maximum not exceeding 1 million Chinese yuan per year. In addition, towns and districts may also offer appropriate financial incentives.
An applicant for such reward must satisfy the following conditions: He/she has worked for a Dongguan-based enterprise or institution for 12 months or more and entered into a labor contract with the employer; his/her annual taxable income from wages and salaries is more than 500 thousand Chinese yuan if he/she works for a financial institution or venture capital enterprise, or more than 300 thousand Chinese yuan if otherwise, or his/her annual income from transformation of technological achievements is 300 thousand Chinese yuan or more if he/she invests by means of technology transfer, technology license or technological achievement pricing; he/she and his/her employer must pay taxes in Dongguan according to law.
Enterprises from Dongguan’s pillar industries, strategic emerging industries, key high and new technology industries; enterprises from modern service industry; colleges and universities; scientific research institutions; other enterprises that are encouraged to develop.
Chairman, general manager (president), vice-general manager (vice president), chief supervisor, chief economist, chief accountant, chief engineer, chief designer, technological R&D director, and R&D general manager of a business enterprise; senior executives with deputy position and above of a financial institution; persons chiefly in charge of an individual proprietorship or a partnership; head person of a first-level discipline in a college, university or scientific research institution; person in charge of a vertical research project at the municipal level or above; high-level talent and distinctive talent of a high-level talent project that has been listed as a national, provincial or municipal key talent project (these talents are not limited to abovementioned applicable employers and applicable positions).