Shenzhen wants everyone to be an entrepreneur, it seems. The city has doubled basic allowances for “startups” and widened their definition to include, well, just about the entire population that works for itself, rather than for corporate titans such as Huawei, Tencent, and Ping An, from what we can see.
According to the Shenzhen Daily News, the basic subsidy for “start-up enterprises”, which can be individuals, has been doubled, from RMB 5,000 to RMB 10,000 yuan. In the case of “partnerships”, i.e., limited liability companies, it goes from RMB 50,000 to RMB 100,000.
Continue reading Shenzhen splashes startup cash
Shenzhen has been raising the bar in the region’s “talent wars”, with competition growing steadily among the 11 GBA cities. Subsidies in the form of housing and tax-equalisation measures have been getting rolled out aggressively lately. The city’s academic leadership must be feeling the pressure, however, because now Shenzhen has set its sights on a few people at the very top of the academic food chain, offering eye-watering incentives to retain its brightest minds.
Continue reading Shenzhen throws cash at big brains
Since value-added tax reforms were implemented in April, nearly 300,000 taxpayers in the province’s wholesale and retail trades have benefited from cuts of RMB9.835 billion, reducing their tax bills by almost half (45.52%)
The cuts, which accounted for 33.68% of the total tax reduction across all businesses, excluded Shenzhen, whose tax affairs are administered separately.
In the first half of this year, the wholesale and retail trade generated sales of RMB2068 billion in Guangdong (including Shenzhen), up 7.7% year on year.
In its latest effort to stimulate domestic consumption, the Shenzhen government has set up a dedicated fund to reward top-performing retailers by fattening their profit margins.
Mom n’ pop shops need not apply. The scheme is for retailers who have achieved more than RMB100 million in YoY sales growth. They will get a cash “reward” of RMB500,000, i.e., an addition of 0.5% to their profit margins for every RMB100 million of sales they achieve. The reward will be capped at RMB10 million per company.
The fund will also be used to encourage the development of original design, technological research and development, procurement and trading, events and exhibitions, and brand building. Companies making use of new technologies, such as IoT, big data and blockchain, to develop new retail projects, will be eligible for 20% of cost subsidies, capped at RMB20 million per year.
Continue reading Shenzhen boosts retailer subsidies
The Zhuhai Free Trade Zone Administrative Committee will raise financial incentives for enterprises in the Zhuhai-Macao Cross-Border Industrial Zone – especially those solely funded by Macao.
The revised incentives focus on companies engaged in logistics, architecture, finance, transportation, business and trade, wholesale and retail, software and information consultation, technology services, education, public health, culture and tourism, and general aviation services, according to China Daily.
The financing incentives will depend on a company’s annual operating revenue, year-on-year growth, fiscal contribution, and other indexes.
Guangzhou’s Huangpu district is pushing hard on 5G support policies, releasing 10 new measures today to boost commercial application and rollout. For new companies targeting high-end 5G components, chip modules and new-type industrial terminals (such as 4K/8K terminals, smart wearable devices, unmanned transportation tools), the Huangpu government offers a reward of a rebate of 5% of the registered capital or up to RMB3 million for each enterprise that paid in more than RMB10 million at time of registration. An extra RMB300,000 will be given for introducing technological “talents”.
New 5G enterprises can also get up to RMB2 million of rewards based on the amount and growth rate of annual operating income. The government will select 10 to 15 showcase projects each year, offering 30% of the total investment of the project or up to RMB5 million as subsidy.
Huangpu is also encouraging large enterprises and operators to build application-oriented networks in the industrial parks, offering up to RMB2 million of subsidies. For new companies joining the industrial park, up to RMB600,000 of rental subsidy and RMB1 million renovation subsidy will be offered.
Up to RMB5 million subsidy will be given to companies establishing innovation centers and labs.
Read more in Chinese.
If there is a trade war going on, someone ought to let Nansha know about it: the special economic zone on the southernmost tip of Guangzhou saw imports jump 15% in the first five months. Driving this appears to be Nansha’s “bonded logistics” status, which essentially allows for duty-free imports of goods that are then reassembled or repackaged before being distributed. These accounted for nearly 30% of total trade through the port in the January-May period, at RMB20.37 billion, up nearly 40% YoY.
Similarly to neighboring Dongguan, cross-border e-commerce is the other big driver of trade growth through Nansha, rising 25.4% YoY in the first five months. Nansha now accounts for nearly 80% of Guangzhou’s total cross-border e-commerce value. The two hottest items were – surprise – accounted for by mothers and daughters: milk powder (+3.8%) and cosmetics (+55%).
The government ought to take a pat on the back. Since April 1, VAT for imports has been cut from 16% to as low as 9% on some goods. Clothing, shoes and hats, household equipment, daily chemical products, cultural and entertainment-related products are seeing the strongest growth.
Read more on Guangzhou Daily.
The nine Guangdong cities of the Greater Bay Area have finally all been put on the same level in attracting “talents” from outside the mainland. In recent months, various cities and special economic zones have been announcing their policies for attracting skilled workers, entrepreneurs and others. Over the weekend, the provincial government’s finance department announced that all nine cities would now be able to offer the same 15% subsidized tax incentive to attract talented people.
We explained how this all works in a feature that you can read here. Basically, it is a subsidy that is paid once a year, based on how much tax an individual has been assessed as owing, with the difference between the assessed amount and the amount calculable at 15% being reimbursed. Assessed amounts eligible include salaries, income from remuneration for personal services, royalties, income from franchise royalties, operating income and subsidized income from “talent projects”.
Read our primerfor more details such as who qualifies, etc.