Encouragement galore for companies settling here

Updated: 2011-08-18 08:17

By Te Kan (China Daily)

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Encouragement galore for companies settling here 

High-tech companies, especially those in the IT sector, are the biggest beneficiaries of the development zone's and the nation's preferential policies.

It is not only the good location, transportation, industrial base, and adequate energy that make the Chongqing zone a good place for investors - when its preferential investment policies and services are factored in, it is a great place.

First of all, there are national preferential policies for State-level development zones, and for the western development program that Chongqing Economic and Technological Development Zone qualifies for, according to the administrative committee.

Then there are the zone's own tax incentives for any and all enterprises.

For example, companies get a favorable rate - 15 percent - on their income tax, compared with the standard 25-percent rate elsewhere.

And certain industrial enterprises, such as those in manufacturing and IT, get land incentives, which includes a subsidy for land purchases or for land, plant, and office rentals.

These companies also qualify for a reward when they increase their investment. If the investment added amounts to more than 5 million yuan, they get 50 percent more taken off their income tax.

To encourage them to raise funds for expansion, the local government offers a subsidy equal to 25 percent of the annual interest on any bank loan.

High-tech enterprises have even more incentives. First of all, their income tax can be cut to 10 percent. And if they are a State-level high-tech enterprise or State-level innovative enterprise, they qualify for a 100,000-yuan local government imbursement.

In the case of high-tech R&D companies, there are awards of from 100,000 yuan to 300,000 yuan if the laboratory or technology centers is a State-level or municipal-level one.

In addition, after a year of operation, the State-level entities can qualify for a further grant of up to 3 million yuan.

For those in modern logistics, their own land-use incentives are similar to those of manufacturing companies.

If they are 2A, 3A, 4A, or 5A logistics entities, they can get a grant of from 50,000 yuan to 200,000 yuan.

And, if their warehouse space is as much as 10,000 to 40,000 square meters or more, the grant can go from 50,000 to 200,000 yuan.

There are even more subsidies to cover transportation equipment and the container businesses.

And, finally, the local government provides efficient services for these companies with its one-stop solutions and simplified, more transparent processing.

(China Daily 08/18/2011 page6)