Several Measures to Encourage the Use of Foreign Capitals
In order to implement the spirit of the Notice on Several Measures to Open Wider to the Outside World and Positively Use Foreign Capitals (Guo Fa No.5) of State Council and the Notice of the People’s Government of Fujian on Printing and Distributing the Implementation Plan of Several Measures to Open Wider to the Outside World and Positively Use Foreign Capitals(Min Zheng No.10) and other documents and further guide and encourage foreign investors to invest in Fuzhou, promote innovative development, the following measures are formulated:
(I) Economic contribution award. For foreign-funded enterprises newly established in 2017 with a total investment of more than USD 100 million or a contractual foreign capital of more than USD 30 million, part of the added value tax and corporate income tax are preserved by the local government from the first taxable year, 100% rewards are given in the first two years and 50% rewards are given in the following three years. The highest award of an enterprise is RMB 10 million each year. For the foreign-funded enterprises of the same type established before 2016, based on the part of the newly increased annual year-on-year added-value tax and corporate income tax preserved by the local government, starting from 2017, 100% rewards are given in the first two years and 50% rewards are given in the following three years. The highest award for an enterprise can amount to RMB 5 million each year.
(II) Living subsidies for senior executives. Forforeign-funded enterprises with the paid-in capital of more than USD 5 million by foreign shareholders, the living and working subsidies of the senior executives shall be amounting to 50% of the local preserved part of the individual wage tax paid by the senior executives (including chairman and vice chairman, general manager and vice general manager and other personnel at the same level); the number of senior executives in one enterprise obtaining this award shall not be more than 10 and the highest award for each person each year is RMB 1 million. In addition, the high-level talents confirmed by the related departments of the city may enjoy the benefits specified in the Ten Policies of Fuzhou to Promote a New Round of Economic Innovation and Development(Rong Wei FaNo.5) and Seven Measures on Encouraging the Introduction of High-level Talents.
(III) Actual investment awards. For new foreign-funded enterprises (except real estate projects) conforming to the industrial development plan and environmental plan of the city, if their foreign shareholders have paid an annual registered capital of more than USD 5 million, an award shall be given based on 1.5% of the sum of paid-in registered capital converted into RMB. Under one of the following circumstances, the award will be increased by 50%:(1) enterprises belong to the Fortune Global 500 or Taiwan’s top 100 enterprises; (2) enterprises are established in the way of foreign-funded enterprises merging domestic enterprises; and (3) enterprises are invested by a foreign listed company returning to China. The highest award for actual investment is RMB 10 million.
(IV) Awards for capital increase and production expansion. For capital increased by the capital reserve, undistributed profit after tax, the awards shall be given to the foreign enterprises with an actual capital increase amount of more than USD 5 millionaccording to 100% of the part of the withholding tax preserved by the local government. The highest award is RMB 5 million.
(V) Awards to referrers of major foreign capital projects. Awards will be given to the referrers who supply the investment proposals of the real major foreign-funded projects to the city through a variety of channels, assist the city to directly connect with the foreign investors, play a substantial role in project negotiations, and recommend the investors or enterprises with investment proposals to the city to realize great foreign-funded project settlement and are affirmed by the investors. The referrers are awarded according to 1‰ of the paid-in registered capital made by foreign investors for the introduced foreign-funded projects with a foreign paid-in registered capital of more than USD 10 million. The awarding rate will be increased to 3‰ forthe introduced foreign-funded projects with a foreign paid-in registered capital of more than USD 30 million. The highest award of a single project is RMB 2 million. The referral does not include thecivil servants of government agencies and the workers of public institutions.
(VI) Encourage to attract investment. Attract the foreign funded projects investing in key supplementary industries in line with the national, provincial and municipal industrial policies and environmental requirements, the foreign funded leading projects and the foreign funded projects of the national strategic emerging industry by authorizing intermediary organs, engaging senior investment promotion advisers and through protocol mode, and put focus on the Fortune Global 500 enterprises, transnational corporations and leading industrial projects. Set up a special fund to attract foreign investment, so as to formulate opening strategy and investment promotion plan; build high level international network to invite investment, and make sure special funds are used for special purpose. For those in line with the nonlocal investment policy, the Proposed Regulation to Promote the Characteristic Development of the Park and Encourage Nonlocal Investment in Fuzhoucan be followed.
Actively introduce foreign-funded regional headquarters and functional institutions. Attract multinational companies to set up foreign-funded regional headquarters, procurement centers, clearing centers, management centers and other functional institutions in the city. Where foreign-funded enterprises are identified as headquarters enterprises, the award criteria will be increased by 50% based onTen Policies to Promote a New Round of Economic Innovation and Development in Fuzhou(Rong Wei Fa  No.5) and the Eight Measures to Speed Up the Development of Headquarters Economy in the City, and an RMB 5 million of allowance at maximum for establishment will be provided. The reward will be cashed by 40%, 30% and 30% in three years respectively.
(VII) Increase land support.
1. Give priority to the supply of land to the encouraged foreign-funded industrial projects with intensive land use, and it can be carried out at a rate of no less than 70% of the same land grade specified in the National Minimum Price Standards for the Transfer of Land for Industrial Use when determining the base price for the transfer of land. After calculation, if the transfer price is less than the sum of the actual land acquisition cost, the preliminary land development cost and relevant fees, the final transfer price determined shall not be less than the sum of all costs.
2. For the foreign-funded enterprises reconstructing the plant on the original construction land in the industrial park and increasing theplot ratio in line with planning and safety requirements without changing the use, no additional land prices will be charged and the urban infrastructure facility costs shall be exempted. For those developing advanced manufacture industry, productive and high-tech service industry, entrepreneurship and innovation platform and other new industries and new industry patterns of construction projects supported by the government by utilizing the existing industrial land, the original use is still applicable after being approved by the municipal (county) People’s Government with five years of transitional period. After it expires, the land use procedure shall be handled for the new use according to law. For those changing the original land use due to transformation and development, the planning change and land use procedure shall be handled according to law.
3. For the projects in line with the industrial land policy introduced throughout the whole city, the land can be used in the form of rent-to-transfer and rent-transfer combined; for the land that shall be transferred in the form of auction and bidding by uses, the auction and bidding can be carried out during leasing; when the transfer procedure of the land used and leased by the tenant is required after reaching the agreed terms of the contract, the protocol mode can be adopted.
(VIII) Support and widen the financing channels. Encourage foreign-funded enterprises to list on the main board, small and medium enterprises board, growth enterprise market and NEEQ in China. The awarding criteria shall be subject to the Ten Policies to Promote a New Round of Economic Innovation and Development in Fuzhou(Rong Wei Fa  No.5) and the Five Measures to Support the IPO of Enterprises. For those enterprises completing IPO through buying a shell or reverse merger in remote, whose registration place is moved back to this city and the turnover tax and income tax are applied and paid in this city, and who commit not to move out within 10 years, a one-off award of RMB 2 million is granted.
(IX) Increase support for technical innovation. Foreign-funded enterprises identified as national, provincial and municipal entrepreneurship and innovation demonstration center, as well as the national, provincial, municipal high-tech business incubator, are subject to the awarding criteria specified in the Ten Policies to Promote a New Round of Economic Innovation and Development in Fuzhou(Rong Wei Fa  No.5) and the Seven Measures to Support theEntrepreneurship and Innovation.
(X) Deepen the reform of foreign investment management system. Simplify the establishment and change management procedures of foreign-funded enterprises to facilitate foreign investors to invest in Fuzhou. The filing or approval and other procedures for the major foreign investment projects shall be handled in the project location for free, and the approval shall be actively promoted to handle parallelly. In the whole city, the business of one-window acceptance, time-limited handling and searchable progress shall be carried out, in order to increase the level of electronic administration and enhance the informationalized level of foreign investment management.
(XI) The bonus involved in this measure shall be respectively borne in accordance with the current financial system. The bonus of the municipal enterprises and personnel shall be borne by the municipal financial department, the bonus of the enterprises and personnel in the five urban districts shall be equally shared by the municipal and district financial departments, and the bonus of the enterprises and personnel in the counties (city), high-tech zones and bonded zones shall be borne by the local governments’ financial departments.
This measure shall come into force on the date of announcement and shall replace any relevant provisions inconsistent with this measure. The power of interpretation vests on the Municipal Bureau of Commerce and the Municipal Bureau of Finance.