To all the People’s Governments of Counties, county-level cities and districts, all the departments of the People’s Government of Jiaxing Municipality and all the units directly under the municipal government,
In accordance with the strategy of "starting business for the people and invigorating Jiaxing through innovation", in response to the changes we are confronted with in industrial economy, the following suggestions have been proposed to enhance healthy development of industry in Jiaxing.
I. To highlight governmental guiding in developing industry
1. To speed up industrial restructuring. We will tighten up on revising and perfecting the guiding directory for advanced manufacturing industry base, following the principle of information-oriented industrialization, accelerating the development of advanced manufacturing, pressing ahead upgrading of industrial structure, and building a modern industry system to strengthen the competitive force of Jiaxing's industry. We must set down specific supporting policies for key industries, making effort to guide the development.
2. To encourage equipment manufacturing industry. We should bring the special fund for developing equipment manufacturing industry in Jiaxing City into full play. Subsidies will be given to the development of key technologies and equipments, the researching and producing of the first equipment of its kind, technological innovation in equipment manufacturing industries and the commercialization of innovative achievements. The subsidies to the above are higher than the average.
3. To eliminate obsolete production. Our policies for eliminating obsolete production will be perfected and implemented to give room to the new and more capable. The eliminating of obsolete production should be scheduled to optimize the industry structure at fast pace.
II. To increase tax support
1．To give full play to the special fund for industrial development. If the projects are on the lists of key industrial investment and equipment manufacturing industry in Jiaxing City, large-scaled, having a good economic return and developing at high speed, they can get an advance subsidy after the projects have been examined. The rest will be paid according to the actual investment on the completion of the projects.
2．To give more support to small and medium-sized enterprises. More need to be done to help small and medium-sized enterprises in technology innovation and technological transformation and to establish systems of credit guarantee and service for them. Small industrial enterprises of meager profit with employees of no more than 100, and a total asset of no more than 30 million yuan, whose production is not forbidden by law and whose yearly taxable income amount is no more than 300 thousand yuan, can get a 20% reduction of corporate income taxes.
3．To encourage enterprises to do technological innovation. High-tech enterprises in accordance with the requirements for the government support may get a 15% reduction of corporate income taxes. The expense of an enterprise on 3-type newness (new technology, new product and new manufacturing technique which are not yet accomplished as intangible assets), which has not been included as current loss, can be included 100% as loss plus another 50% of the expense on research and development. If they are accomplished as intangible assets, the expense can be included as loss 150% of the cost for the intangible assets. Projects of technology transfer can get tax preference, while profit deduction for workers' education must be reserved in full.
4. Greater effort must be made to support enterprises and industries in difficulty. Key enterprises, exported-oriented enterprises and others of textile, chemical fiber, leather and garment, if in difficulty and incapable to pay taxes in time, can defer the payment, but no more than 3 months. Tolls which can be postponed by the law may be postponed totally.
III. To strengthen financial guarantee
1. To provide a great variety of financial products. Various financial institutions should make full use of letter of guarantee, packing credit, acceptance bill and note discount to provide loans to small and medium-sized enterprises with their own market, technology and encouraging prospect for development. Financial institutions may use warehouse list loans and close-ended loans to support loss-incurring enterprises with order forms and guarantee for paying the loans. Financial institutions may provide loans collateralized with equity positions to non-listed Ltd Co. registered in Jiaxing with partners no more than 200.
2. To further strengthen bank-enterprise cooperation Financial institutions should make great effort to expand internal loan scale in order to give more support to industrial enterprises in Jiaxing. The growth rate of loans to industrial enterprises should surpass that of RMB and foreign currency at the same period. We should bring Jiaxing Municipal Office of Financial Service into full play, following the principle of "going out" and "bringing in" to publicize industrial projects in Jiaxing to banks and insurance companies outside Jiaxing and expand loans in Jiaxing, and lengthening the chain of bank-enterprise cooperation. We will speed up the pace of multi-level financial market, encouraging enterprises to cooperate with security, insurance, and venture capital. Hence, property rights are open for direct financing. Measures must be taken to tighten data management of small-sized enterprises, perfect the loan-risk compensation system for small sized enterprises, and encourage financial institutions to provide more loans to small and medium-sized enterprise and to offer help to those enterprises with difficulty in turnover of funds.
3．To accelerate the construction of local financial system in Jiaxing. Financial institutions should actively provide support for guarantee agencies. They are supposed to create new products in the cooperation between bank and insurance company, like bill guarantee, export credit guarantee and warehousing collateral. We will speed up pilot project of small-loan companies. The first batch of pilot companies will be established and begin to operate by the end of this year. We will work hard to apply for setting up township and village level banks. We will reorganize Jiaxing Municipal Security Centre for small and medium-sized enterprises to strengthen its backup for security. We will also give full play to pawn broking institutions with an attempt to expand in size and function.
IV. To Intensify Guarantee of Land and Other Productive Elements
1. To strengthen guaranteeing land for industrial uses. We will strive for getting more land quota from higher level government and making more projects be listed on the National or Provincial Key Projects. Priority will be given to ensure that over 50% of the land quota will be used for industrial construction, and over 70% of the land for industrial construction be used for key projects of four industrial groups with an investment of over 100 million yuan. We will actively meet the land demand of small and medium-sized enterprises business start-up centers for constructing standard factory buildings and supporting buildings.
2 To encourage enterprises to expand their development space. We will guide enterprises to expand land used for production by optimizing the greening plan and cutting down on land used for constructing supporting facilities. We will encourage enterprises to use land more efficiently by adding more floors to the workshop buildings, reconstructing and reforming the old factories or arranging the inside. If they do not change the planned uses of land, and raise the volume rate of buildings by adding more floors or reforming, we will not raise land cost, and will exempt supplement fee of city construction.
3 To implement the total quota of discharge pollutants. We will keep the total discharge of pollutants in control by reducing the existing pollutant discharge and the pollutant emission from new enterprises so as to leave for the new projects some quota of pollutant emission. By emission right trading, we will ensure the quota of discharge pollutants of key industrial development projects with investment of over 100 million yuan.
4 To help thermoelectric plants provide power and heat supply normally. We will further improve the price coordination mechanism for thermoelectric plants and their customers. A fiscal subsidy scheme is to be adopted for part that beyond the base electricity quantity during the summer peak to reduce production pressure and maintain steady, normal production.
V. To Relieve the Cost Pressure on Enterprises.
1. To reasonably reduce employment cost of enterprises. According to actual situations of enterprises, we will strive for realizing a win-win for employers and employees, insisting on advancing by steps and rationally while implementing Labor Contract Law. We will further perfect the method of levying social insurance fees (5 fees combined). In line with the principles of equitable distribution of the economic burden and promotion of fairness, we will be working to formulate measures for migrant-workers to be included in the social security system, based on tamping the base of social insurance fee and maintaining appropriate growth in the social insurance fee premiums. Our purpose is to make the growth in the social insurance fee premiums suit that in our economic development.
2. To guide enterprises to improve their management. We will guide enterprises to establish the concept of modern management and innovate their management. We will support them to adopt information technology to improve their management mode and optimize their management so as to reduce costs of production and operation.
VI. To Guide Enterprises to Respond Positively to a New Export Situation
1 To guide enterprises to avoid exchange rate risk. Enterprises are encouraged to properly avoid exchange rate risk by adding exchange rate articles in export contracts, adopting the methods of settling of exchange ahead of time and collecting advance payment, increasing the monetary settlement forms besides U. S. dollar, and actively making use of such financial means and tools as forward settlement and surrender exchange.
2 To increase support to foreign trade businesses. Foreign trade enterprises will be organized to apply for the national capital projects for small and medium-sized enterprises to open up more markets abroad and provincial subsidized projects for promoting foreign trade. Jiaxing preferential policies for foreign trade are to be carried out in time so as to play its guiding role to full. And we will promote export-oriented enterprises to develop foreign trade in the light of science and technology, give more support to research and development projects of hi-tech and electromechanical products, and accelerate the adjustment of export structures. We will strengthen cultivating and publicizing export brands, supporting and guiding foreign trade enterprises to create the national, provincial or municipal export brands. We will encourage enterprises to open up international markets, and support them to participate in both overseas exhibitions and major international exhibitions held at home. Accelerating examining and approving of export tax rebate will relieve their fund pressure.
3. To do well in early warning for foreign trade. We will accelerate improving the early warning system of foreign trade and provide more services and guidance for enterprises and trade organizations in response to anti-dumping, countervailing, safeguard measures and trade barriers. And we will exert the influences of Zhejiang industry injury early-warning, monitoring analysis system to keep abreast of the changing conditions of import and export, and strengthen tackling related key, common technologies in the process of technological trade barriers so that trade friction can be reduced as much as possible.
VII. To Encourage Resource Saving and Environmental Protection
1. To guide enterprises to carry out technological transformation for energy saving and emission reduction. We will introduce preferential policies to those enterprises that are within the limits set by the State. They engage in public sewage treatment, public garbage disposal, comprehensive exploitation and utilization of methane, technological transformation for energy saving and emission reduction, and seawater desalination. The business income tax from these projects will be exempted in the first three profit-making years and reduced by half in the ensuing three years.
2 To encourage enterprises to make comprehensive use of resources. 90% of the income from the products of using resources comprehensively can be reduced in the taxable income amount if these products are not limited or prohibited by the State and meet national or trade standards.
3 To encourage enterprises to use energy-efficient and discharge reducing appliances. If enterprises purchase and actually use equipments of environmental protection, energy conservation, water-saving and safety production, 10% of the equipment investment can be regarded as a creditable amount of total taxable corporate income taxes in that very year. If the income tax amount of the year is not enough for compensation, it will be carried forward in the coming 5 tax years. If the value of these equipments in the very year exceeds 500,000 yuan, after approval by taxation department, those enterprises may enjoy exemption on housing tax, urban land-use tax and special funds for water resources construction.
Jiaxing Municipal People’s Government
July 31st, 2008
