Incentive Measures of Heilongjiang Province for Promoting Foreign Investment (Trial)

The measures are formulated for the purpose of further expanding the scale of utilizing foreign capital, improving the level of utilizing foreign capital, highlighting the invitation of big ones and attraction of strong ones, highlighting the high-end and advanced ones, highlighting the supplement, strengthening and extension of chains, promoting the landing of high-tech, high-growth and high-value-added enterprises, realizing the cluster and chain development, and increasing the support and incentive for foreign-invested enterprises in our province.

I. Object of Incentive

Foreign-invested enterprises that have completed enterprise registration and tax registration in Heilongjiang Province, conforms to the orientation of industrial policies, have independent legal person qualification, implement independent accounting, and operate in accordance with laws.

II. Standard of Incentive

(I) Incentives for Actual Investment in Place

For the projects with the actual amount of foreign investment in place of more than 10 million US dollars (including) in the year of establishment in our province and the capital increase projects (excluding residential real estate industry, financial industry, and quasi-financial industry projects), 2% of the actual amount of foreign investment in place in the current year (equivalent to RMB, the same below) will be received as incentive, the maximum incentive is 50 million RMB.

(II) Incentives for High Energy Level Projects

1. For the advanced manufacturing and modern service projects (excluding the real estate, financial and quasi-financial projects) newly established by the world top 500 enterprises and global industry leaders with the actual amount of foreign investment in place of more than 50 million US dollars in the same year, a one-time incentive of 1% of the actual fixed asset investment in place will be given, and the maximum incentive is 30 million RMB.

2. For the newly established headquarters or regional headquarters of multinational companies in our province, the projects with the actual amount of foreign investment in place of more than 30 million US dollars in the same year after examination and verification, the one-time incentive will be given according to 1% of the actual fixed asset investment in place, and the maximum incentive amount of 30 million RMB.

3. For functional institutions such as R&D centers, procurement centers, financial management centers and settlement centers set up in our province, with the actual amount of foreign investment in place exceeding US $2 million after examination and verification, the establishment subsidy of RMB 1 million Yuan will be given.

(III) Incentive for Special Contribution

For the manufacturing projects such as agricultural and sideline products intensive processing projects, new generation information technology projects, intelligent equipment projects, biological medicine projects, new energy and new materials projects, which have significant driving effect in the transformation and upgrading of the industries of the whole province, and the modern service projects such as health tourism projects, logistics projects and new economy projects, which have outstanding contributions to the local economy and social development, the incentive will be given in accordance with the method of “one discussion for one project”.

(IV) The above (II) can be combined with (I), the (III) cannot be combined with (I) or (II). The above (I), and (II) and (III) can be combined with the incentives arranged separately by the local municipal (regional) government (administrative office). The projects of advanced manufacturing industry and modern service industry should be the projects within the scope of incentives for foreign investment in the year when the projects were established. The projects that have made a significant contribution to local economic development are not subject to this restriction. Projects in industries with high energy consumption, high pollution and resource consumption are not included in the scope of incentives.

III. Conditions for Application

(I) Foreign-funded projects refer to all foreign-invested projects registered and established in Heilongjiang Province. Capital increase projects refer to foreign investment projects with new registered capital after January 1, 2021. The time of establishment and capital increase shall be subject to the registration time of the market regulation departments.

(II) The new projects and capital increase projects of the joint venture shall be subject to the investment amount of the foreign shareholder, and the investment amount of the Chinese shareholder shall not be included in the scope of incentives.

(III) The actual amount of annual foreign capital in place refers to the capital of an enterprise which has been actual in place in the form of cash within a fiscal year (from January 1 to December 31) and has been included in the statistics of actual foreign capital utilization announced by the Ministry of Commerce, not excluding investment made by investment companies, shareholders’ loans, material objects, intangible assets, equity, or land use rights.

(IV) Different projects invested by the same investment subject in our province can be regarded as a project, and the actual amount of annual foreign capital utilization is calculated by adding up the actual foreign capital utilization of the investment subject in different projects in the same year, and the investment subject chooses one of the investment enterprises registered in our province as the enterprise applying for the incentive.

(V) The foreign-funded enterprises applying for incentives must have legal and compliant operations and no bad records in product safety, corporate integrity, tax payment, environmental protection, financial supervision, and other aspects.

(VI) The standards for identifying the headquarters or regional headquarters of transnational corporations will be promulgated separately after the relevant departments issue relevant rules.

(VII) The world top 500 enterprises are subject to the list of world top 500 enterprise in Fortune in the past five years. The top 500 enterprises can make the investment in the name of the listed parent company or their holding subsidiaries. The parent companies of the top 500 enterprises or their holding subsidiaries shall hold no less than 30% of the shares of foreign-invested enterprises.

(VIII) The global industry leaders are determined according to the ranking directory of Forbes Global 2000 Listed Companies last year, holding 30% or more equity of the applicant enterprises.

IV. Application Materials

(I) Project Application Form (attached). The exchange rate is calculated according to the central parity rate of RMB published by the State Administration of Foreign Exchange on the last working day of the year.

(II) Commitment Letter signed by the legal representative of the applicant enterprise (attached).

(III) The photocopies of the foreign-invested enterprise approval certificate of (or receipt of record about establishment or change of foreign-invested enterprises, the receipt of information report) and the business license of the applicant enterprise.

(IV) The main business statement and the financial statements (balance sheet, profit statement and cash flow statement) of the previous year of the applicant enterprise.

(V) The FDI (foreign direct investment) registration form of the competent foreign exchange authorities or the capital verification report issued by a legally qualified domestic accounting firm.

(VI) The description of world top 500 enterprises or global industry leaders mainly includes the Chinese and English names, the year and the ranking of world top 500 enterprises or global industry leader. If the investment is made in the name of a subsidiary of a top 500 enterprise or a global industry leader, the shareholding structure diagram and relevant enterprise registration materials that can prove the holding relationship should also be attached.

(VII) The photocopy of the registration document of the multinational company and the photocopy of the audit report of the previous year (if the document is in foreign language, it shall be translated into Chinese and stamped with the official seal of the translation company or the applicant enterprise). The internal documents of multinational companies agreeing to set up headquarters or regional headquarters and functional organizations in Heilongjiang Province and assigning corresponding management functions to them (documents in foreign languages shall be translated into Chinese and stamped with the official seal of the translation company or the applicant enterprise).

(VIII) The project applying for the method of “one discussion for one project”, in addition to the above materials, shall submit the application form, put forward the specific application items, and attach the information about operation (fixed asset investment, tax, employment number, etc.), prospect, market share in the industry and industry position of the enterprise, the scientific and technological achievements, invention patents and contributions of the enterprise to the industry of the whole province in the field of high-tech manufacturing and other materials.

(IX) Other materials which the applicant enterprise considers to be helpful for the assessing institution to understand the situation, or other materials which are deemed necessary by the assessment institution.

V. Time of Application

The time of applying for the incentive fund is from January 1 to March 1 of each year.

VI. Verification Procedures

(I) Procedures for Fund Incentive

1. The applicant enterprise shall submit the application materials (in triplicate) to the competent department of commerce (investment promotion) of the city (region) before the end of February every year.

2. The competent department of commerce (investment promotion) of the city (region), together with the local market regulation, foreign exchange management, and finance departments, shall conduct preliminary examination of the application materials, verify the actual investment and authenticity of the project, fill in Summary Form of Application for Foreign Investment Incentive Funds (attached), and submit these materials, together with the basic materials reported by the enterprises, to Commerce Department of Heilongjiang Province before the end of March.

3. The Provincial Department of Commerce, together with the third-party institution employed by the Provincial Department of Finance, shall review the legality, compliance, authenticity and data integrity of the project, and the third-party institution shall issue the review opinions.

4. The Provincial Department of Commerce and the Provincial Department of Finance shall conduct the final review according to the review opinions of the competent department of commerce (investment promotion) of the city (region) and the review opinions of the third-party institution, determine the list of projects receiving incentives, and publish the list on the relevant portal website (the publicity period shall be no less than 5 working days). The projects with objections during the publicity shall be investigated and verified by the Provincial Department of Commerce together with relevant departments. After verification, those who meet the conditions will receive the incentive, those who do not meet the conditions will be disqualified for application and will not receive the incentive.

5. If there is no objection during the period of publicity, the incentive fund shall be allocated according to the regulations.

(II) Safeguard Mechanism. The enterprises should submit the application materials according to the specified time and requirements, and the commercial and financial departments at all levels should work together to implement the policies according to their own functions. The incentive fund shall be cashed once a year. In principle, the incentives for projects conforming to the provisions of the measures in the previous year shall be reviewed and cashed in the current year.

VII. Allocation of Fund

The Provincial Department of Commerce shall, together with the Provincial Department of Finance, in accordance with the review and publicity results, report to the Provincial Government and obtain the approval before allocating funds. The incentive fund shall be solved through the investment promotion funds of Heilongjiang Province.

VIII. Supervision and Administration

(I) The enterprises that have enjoyed the incentive policies stipulated in the measures shall promise not to move out of Heilongjiang Province or reduce their registered capital within five years. The enterprise that defrauds financial incentive funds by illegitimate means shall, once verified, return the incentive funds within a time limit, and be recorded in the enterprise credit information file. Those suspected of committing crimes shall be transferred to judicial organs for handling according to law.

(II) The Provincial Department of Commerce leads the project tracking service and urges the local government of the place where the enterprise projects are located to actively solve the problems during the project construction.

(III) In the first quarter of each year, the enterprise which received the incentives shall report the information about project construction and operation of the previous year to the Provincial Department of Commerce.

IX. Performance Management

In accordance with Investment Promotion Targets and Responsivities Assessment and Incentive Measures of Heilongjiang Province, the Provincial Department of Commerce shall reasonably set the annual performance target and refine the performance indicators of the incentive funds, which shall be divided and distributed simultaneously with the incentive funds after being submitted to the provincial Department of Finance for review. During the implementation of the budget, organize the performance monitoring of the budget operation, and supervise the rectification of the problems found in time. Performance assessment shall be carried out in a timely manner, and the results of performance assessment shall serve as an important basis for future annual budget arrangements and policy formulation.

X. Period of Implementation

The measures shall come into force as of the date of promulgation, and the period of implementation is tentatively scheduled to the end of 2022. After the expiration of the period, the policy adjustment and extension period shall be determined based on the requirements of laws, regulations, and the economic development situation.   

 
Application Form of Incentive Funds for Foreign Investment Projects of Heilongjiang Province in 20XX

 

Note: The exchange rate is calculated at the central parity rate of RMB published by the State Administration of Foreign Exchange on the last working day of the year.

Commitment Letter of Application for Foreign Investment Incentive of Heilongjiang Province

In accordance with Incentive Measures of Heilongjiang Province for Promoting Foreign Investment (Trial), our company Name of Enterprise plans to apply for the incentive Type of Incentive of Amount of Incentive in Figure Ten Thousand Yuan, and hereby submits the application materials and make the commitment that:

I. We have been aware of the contents of the provisions about application.

II. The submitted application materials are complete, true, accurate, legal, and valid.

III. The contents of the application are the true wishes of all investors and the highest authority of the company.

IV. After receiving the reward funds, our company will conduct accounting treatment in accordance with the relevant laws and regulations of the People's Republic of China, and consciously accept the supervision and inspection of financial, commercial and audit departments.

V. After receiving the incentive funds, our company and the company's shareholders promise not to reduce or withdraw the capital in any form within five years. If the company has capital reduction, withdrawal, equity transfer and other circumstances within five years, making the conditions for obtaining financial incentive funds no longer satisfied, the company shall take the initiative to return the incentive funds.

Our company is willing to bear all the consequences arising from the breach of our promise.

Name of Committing Party:

Signature and Seal of Committing Party and Its Legal Representative:

 

Date: