Hainan to award new high-tech firms up to 5 mln yuan

South China's island province recently launched a special policy to boost the development of high-tech enterprises and help them achieve high-quality development, Hainan Daily reported on Oct 29.

The tropical island will offer subsidies of up to 5 million yuan ($740,000) to high-tech companies that move to Hainan. The subsidy will be based on the fixed asset investment and the R&D investment of the company 12 months after they complete the move-in registration process. The amount will be 5 percent of the company's fixed asset investment or 10 percent of its R&D investment, with a maximum amount of 5 million yuan.   

The policy notes that raw materials and equipment imported by high-tech enterprises for scientific research and production that are included on the "positive list" or are not included on the "negative list" will all be tariff-free. High-end talents and talents in short supply can enjoy preferential personal income tax policies, while the new foreign direct investment income of the high-tech enterprises will be exempted from their corporate income tax.

To encourage high-tech companies to invest more in R&D, the policy proposes to reward the incremental R&D expenditure of high-tech enterprises, with an annual quota of 30 percent of their annual R&D expenditure increase. A maximum of 2 million yuan will be granted for enterprises above designated size, and 1 million yuan for other enterprises.

Land for high-tech industries should be included in the land and space planning at related governments of all levels to ensure that they can meet the land demand for the development of high-tech industries. In addition, financial services like credit and financing guarantees will also be provided to high-tech enterprises.

High-tech enterprises are also not restricted from applying for provincial-level science and technology plan projects. The Hainan Provincial Department of Science and Technology will also support enterprises in building technology centers, key laboratories, innovation centers, academician innovation platforms, sci-tech achievement transformation centers, as well as international and sci-tech cooperation bases.