(I) Measures for Accelerating Innovation-Driven Development
1. Enterprises undertaking national key R&D projects and major science and technology special projects (Science and Technology Innovation 2030 - Major Projects) will be provided with up to 50% matching support based on the national funds they have received, with a maximum of 10 million yuan for a single project. The sum of the national, provincial, and municipal funding amount shall not exceed the total project investment.
Enterprises undertaking national major special projects such as national major new drug creation projects and national key research and development programs will receive supporting funds of 100% of the actual funding amount of the state. The national, provincial, and municipal funding amount for a project shall not exceed the total investment in the project.
2. A lump-sum reward of 30 million yuan will be given to newly approved national key laboratories that are closely integrated with the industry; an annual operating fund support of 5 million yuan will be provided to those that are rated as excellent in performance evaluations. Municipal-level key laboratories rated as excellent in performance evaluations are eligible for a reward of 500,000 yuan. Municipal-level key laboratories rated as good in performance evaluations are eligible for a reward of 200,000 yuan.
3. Eligible new-type R&D institutions that are enterprises with total investment of more than 100 million yuan may be given financial support of up to 100 million yuan. Recognized new-type R&D institutions may apply for subsidies for the purchase of R&D equipment up to 50 million yuan. 3. New-style R&D institutions are eligible for a reward of RMB 200,000 for each successfully incubated national-level high-tech enterprise. Crucial R&D institutions will be evaluated on a biennial basis, and will be given a performance reward of up to RMB 5 million depending on the evaluation results. Technology transfer institutions set up in Xiamen with filing for record are eligible for an annual subsidy of RMB 500,000 for three consecutive years after the first year of stable operation.For municipal-level technology transfer institutions located within the Science City, the fund support standard can be increased to 1 million yuan per year.
4.Enterprises can obtain up to 20 million yuan of science and technology guaranteed loans, 5 million yuan of science and technology credit loans and 3 million yuan of science and technology guaranteed insurance loans, and also enjoy subsidies.
5. The municipal-level public service technology service platforms primarily built and operated by enterprises in a market-oriented manner will undergo a performance evaluation every two years. Platforms with excellent performance will be awarded a performance incentive of 15% of the actual technical service revenue for the evaluation year, with a maximum reward of 1.5 million yuan per platform. Platforms with good performance will be awarded a performance incentive of 10% of the actual technical service revenue for the evaluation year, with a maximum reward of 1 million yuan per platform. For small and medium-sized trial platforms and concept verification centers included in the municipal public technology service platform system, a maximum of 20 million yuan of financial support will be awarded.
6. Technological transactions are encouraged. For technical contracts, after the contract is validated and registered by the technical contract registration agency of Xiamen, the organization is eligible for an incentive equal to 1% of the actual annual amount of transaction for the portion below RMB 30 million, and eligible for an incentive equal to 0.5% of the actual annual amount of transaction for the portion above RMB 30 million. The incentive for each organization is capped at RMB 1 million per year.
7. Industrial and software enterprises above the designated scale, as well as IT enterprises, that have annual indigenous R&D expenditures of RMB 10 million or more, are encouraged to establish collaborative laboratories with universities, research institutes, and provincial innovation laboratories. These enterprises are eligible for a subsidy of 10% of the non-governmental investment in the newly added R&D equipment (including software) of the joint laboratory, up to a maximum subsidy of RMB 10 million. Moreover, qualified enterprises can receive financing support of up to 80% of the total investment, with a maximum limit of RMB 100 million. The fixed financing cost is set at 2% per year, and the difference between the bank interest rate and the enterprise’s financing cost will be subsidized with government financial revenues. The subsidized financing interest is available for a maximum period of 5 years.
8.Enterprises with annual indigenous R&D expenditures of RMB 10 million or more will be granted recognition as “Xiamen [Company Name] [Core R&D Direction] [Research or Innovation Center]”. Additionally, the enterprise may apply for two units of affordable housing, which will be distributed by the enterprise itself. For every additional RMB 5 million in annual indigenous R&D expenditures, the enterprise may apply for an additional unit of affordable housing.
9. Sharing a single (set) of scientific instrument or equipment worth 300,000 yuan or above with a price through the municipal sharing platform will be awared a maximum of 400,000 yuan service incentives according to the number of service recipients and the total amount of services. Industrial enterprises, software enterprises, and IT enterprises above the designated scale or newly introduced key organizations (in the five-year period after signing the agreement) are entitled to a subsidy equal to 30% of their actual expenditures on their use of shared scientific instruments and equipment. Each is eligible for a maximum subsidy of RMB 500,000 per year.
10.Priority support is provided to industrial and software enterprises above the designated scale, as well as IT enterprises, through a combination of rewards and subsidies to facilitate their R&D:
(1) Subsidies: For enterprises that have annual indigenous R&D expenditures exceeding RMB 2 million and show growth compared to the previous year, a subsidy of RMB 100,000 will be provided for every RMB 2 million spent on R&D, up to a maximum subsidy of RMB 5 million.
(2) Rewards: For enterprises that have annual indigenous R&D expenditures exceeding RMB 5 million and achieve a growth rate of over 20%, a reward of RMB 300,000 will be given. For those with a growth rate exceeding 40%, a reward of RMB 500,000 will be provided.
(3) For enterprises that have annual indigenous R&D expenditures exceeding RMB 10 million, an additional subsidy equal to 5% of the regular subsidies for R&D expenditures will be provided.
11.A new system called “Leading the Charge through Open Competition” is being implemented, where enterprises present their R&D requests, those capable provide solutions, the government provides subsidies, full authorization is granted, and a timed challenge is set for the development of the required technology. Projects under this system will receive financial support equal to 30% of the total R&D investment, up to a maximum of RMB 10 million. The allocated funds for the responding party can be transferred to non-local organizations for the specific task at hand.
12. Enterprises are encouraged to initiate collaborations with relevant research institutions. These collaborations should aim to establish systematic and task-oriented innovation alliances and manufacturing innovation centers, and undertake joint innovation research or develop public technology service platforms. Innovation alliances can receive financial support of up to RMB 20 million for their proposed science and technology projects.
(II) Preferential Tax Policy for Tech Enterprises
1. Preferential Treatment for High-Tech Enterprises: A reduced corporate income tax rate of 15% is applicable to enterprises satisfying the conditions in the tax laws. For enterprises registered in Siming and Huli Districts, starting from the tax year in which they obtain their first productive or operating income, they will be exempted from corporate income tax for two years, and pay corporate income tax based on 50% of the statutory tax rate for three years thereafter. Among enterprises with revenue of less than RMB 20 million in the previous year, those validated as national-level high-tech enterprises for the first time or revalidated as such are eligible for a reward of RMB 100,000. Among enterprises with revenue of RMB 20 million or more, those validated as national-level high-tech enterprises for the first time are eligible for an additional reward of RMB 300,000, while those revalidated as such are eligible for an additional reward of RMB 200,000. Within the period of eligibility, a one-off municipal-level relocation reward of RMB 1 million will be given to national-level high-tech enterprises whose revenue reaches RMB 20 million or more within a year after relocating to Xiamen in their entirety or in the next fiscal year following the relocation, and the district will also provide a matching reward at a ratio of no less than 1:1.
2. Pre-tax additional deduction of R&D expenses: For R&D expenses actually incurred in R&D activities by enterprises, if such expenses have not been included in the profits and losses of the current period because no intangible assets have been created, then on top of the prescribed factual deductions, an additional pre-tax deduction at 100% of the actually incurred sum is permitted as of Sunday, January 1, 2023. If an intangible asset has been created, pre-tax amortization at 200% of the cost of the intangible asset is permitted as of Sunday, January 1, 2023.
3. Tax benefits for the technology market (technical contracts): VAT is exempted for taxpayers providing technology transfers, development and related consulting and services. 3. For technology transfers satisfying the conditions, the portion of the income at or below RMB 5 million will be exempted from corporate income tax, and the portion of the income over RMB 5 million will be subject to corporate income tax at half of the statutory tax rate.
4. Tax incentives for technologically advanced service enterprises: 1. Income tax incentives: Relevant tax laws provide that: (1) For certified technologically advanced service enterprises, corporate income tax is levied at a reduced rate of 15%; (2) For certified technologically advanced service enterprises, employee education expenses that do not exceed 8% of their total wages and salaries are allowed to be deducted when calculating the taxable income; the excess portion is allowed to be carried forward and deducted in subsequent tax years. 2. Value-added tax exemption: According to relevant tax laws, there are a total of ten types of cross-border services exempt from value-added tax, and technologically advanced service enterprises are all exempt from value-added tax. 3. Preferential policies for customs bonded supervision: According to relevant announcements by the General Administration of Customs of PRC, customs authorities implement bonded supervision on goods imported by technologically advanced service enterprises certified by customs authorities that are engaged in international service outsourcing business and categorized into general credit rating or above in customs regulation. This excludes goods for which the state does not grant tax reductions or exemptions.
5. Validation of High-Tech Achievements Commercialization Projects: 60% of the locally retained portion of the VAT already paid will be refunded for two years starting from the year of validation.
