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Analysis of Opinions on the Implementation of Speeding up the Development of Headquarters Economy

Release time: Sep 26, 2018


Major Principles

While emphasizing on introducing new headquarters economy enterprises, Guangzhou should provide high-quality service for existing headquarters-economy enterprises, especially those special in finance, commercial service, information service and advanced manufacturing sectors. Priority should be given to attract Fortune Global 500 MNCs, Top 500 Corporations of China, multinationals and central state-owned large companies to set up headquarters, regional headquarters or functional headquarters in Guangzhou; other efforts will be taken to introduce headquarters of domestic enterprises, especially those in the Pearl River Delta (Hereinafter referred to as PRD). Two kinds of service headquarters should be fostered and developed, including producer service headquarters such as finance, insurance, modern logistics, international exhibition and information consultancy, as well as new service headquarters in the fields of commercial service, technological service, modern engineering service and creative industries. Great efforts should be made to develop pillar industries as automobiles, electronic information and petro-chemistry as well as equipment manufacturing headquarters. Guangzhou will develop environmental, energy saving and hi-tech headquarters including new medicine, new materials, new energy and information service rapidly.

Overall Objectives

After five to ten years' efforts, the number of headquarters-economy enterprises will increase obviously, the scale economy effects should be enhanced, the structure should be upgraded and sustainable development ability should be promoted. Till 2015, the revenue from headquarters economy will account for approximately 25% of the total corporate revenue in the city. Till 2020, Guangzhou will be built as "the Capital of Headquarters Economy" in Asia Pacific region which extends its influence to the Pearl River Delta Rim, the Pan Pearl River Delta, China and even the world as well.

To Optimize the Layout

The special planning for headquarters economy should be strengthened. Emphasis should be laid on planning and constructing important functional zones of headquarters economy including Zhujiang New Town Yuan-Cun Area, Pazhou Area, Tianhe Bei- Huanshi Dong-Dongfeng Lu Area, Nanshan New Area, Guangzhou Science City, Knowledge City, Baiyun New City, Bai'ertan Area, Southern Section of the New City Axis and Guangzhou South Railway Station. Headquarters enterprises should be guided to develop in clusters according to different functions in different districts.

To Strengthen Land Use Support

Guangzhou Municipal Land Resources and Housing Administrative Bureau should bring office space of headquarters-economy enterprises into the annual land supply plan, define reasonable terms of land remising, assure the office land of headquarters-economy enterprises by land market public grant. In compliance with the relevant planning requirements, individually established R&D centers and product design workshops of headquarters-economy enterprises could be supplied by land transfer according to agreements.Land projects functioned as headquarters such as industry design and creative industry may get support according to preferential polices from the Replacement of the Secondary Industry with Tertiary Industry in Downtown Area and the Renovation of Three Olds: Old Towns, Old Factories, and Old Villages .

To Innovate Financing Mode

Guangzhou should guide financial institutions to increase credits for headquarters- economy enterprises, coordinate and organize syndicated loans, encourage innovation on financial products and services, explore financing modes for headquarters-economy enterprises, including pledges of intellectual property, charging rights and large-volume commodities warrant, etc.

To Support the Utilization of Capital Market

Steps for headquarters-economy enterprises and their qualified affiliated enterprises to seek financing by listing on the stock market should be quickened while headquarters-economy enterprises are aided in financing via various methods like issuing corporate bonds, company bonds and medium-term bills. Supports are given to various equity funds to participate headquarters enterprises' investment and financing. Qualified headquarters-economy enterprises are encouraged to initiate the establishment of industrial investment funds.

To Encourage Headquarters-Economy Enterprises Conducting Technological Innovation

Funds for technology and Enterprises development should be allocated towards the following aspects: the replacement of imported equipment with equipment independently developed by headquarters- economy enterprises; the joint tackling and development of general, critical and prospective technology; the promotion of international advanced management and operation modes and the introduction of leading technology talents. Eligible R&D expenses incurred by headquarters enterprises in the development of new technology, new products and new workmanship will be deducted in the calculation of income amount.

To Implement Exclusive Services To Key Talents of Headquarters Enterprises

The Human Resources and Social Security Bureau will take the lead to determine about 100 key talents selected from headquarters-economy enterprises whose annual tax revenue paid to the city level or district level (county-level city) tax administration has totaled over RMB 50 million yuan (calculated in value-added tax, business tax and enterprise income tax, calculation is the same hereinafter), and provide the talents with exclusive services. 

Exclusive services are mainly as follows: The Human Resources and Social Security Bureau will fulfill the formalities of introduction in time for the talents and assists them to solve the employment problems of their spouses; The Public Security Bureau will give priority to handle procedures for the residential settlement of the talents, their spouses and underage children. They are not limited by settlement quotas and can choose the site of work or living as the place for household register; For those unwilling to change their nationality, household register, the right of permanent residence or citizenship of Hong Kong, Macao and Taiwan, the flexible methods will be taken. For example, they may apply for theResidence Card of Guangdong Province to enjoy corresponding benefits and welfares; qualified key talents of foreign nationality in headquarters-economy enterprises are aided to apply for a one to five years long-term residence permit and offer facilities for their entry and exit of China; Health departments should build medical insurance mechanism for key talents of headquarters enterprises and provide premium services according to the city's privileged medical treatment standard; Administrative Service Centre should set up special windows to provide service for key talents of headquarters enterprises.

To Provide Family Settlement Assistance

For those moving into Guangzhou in or after 2010, which have been identified by the government as headquarters enterprises, Guangzhou Land Resources and Housing Management Bureau should provide family settlement support to key talents in the enterprises with references of Guangzhou's preferential housing policy for high-level talents.

The Settlement Award for headquarters Enterprises

From 2010 onwards, those registered and identified as headquarters enterprises in Guangzhou will be given a one off reward as 50 percent of the total tax revenue paid to the city-level or district- level (county-level city) tax administration, in the year of the identification.The maximum reward amount shall not exceed RMB 50 million yuan.

The Contribution Award for Headquarter Enterprise Operation

From the very year of identification, the headquarters enterprises (including the existing ones and those introduced in 2010 or afterwards) with a tax revenue of over RMB 10 million yuan paid to the city-level or districtlevel (county-level city) tax administration in the previous year and the annual tax increase reaching over 5 million yuan compared with the year before the previous year, should be given a reward or subsidy worth of 30 percent of the increments and the maximum amount of reward or subsidy shall not exceed RMB 5 million yuan. For those receiving reward or subsidy of RMB 5 million yuan in five consecutive years will be given another oneoff reward or subsidy of RMB 10 million yuan. The above rewards or subsidies should be either distributed to the decision-making managerial personnel and other related staff, or allocated as supporting funds to the headquarters-economy enterprises for their further production and business expansion. For those whose annual tax increment ranks the top 10 of all the headquarters-economy enterprises in Guangzhou, one of their main directors will be given a RMB 1-million (after-tax) reward in the name of the government.

The Subsidy for Office Space

Those identified as headquarters enterprises which move in Guangzhou in 2010 or afterwards and settle in the demonstration base of headquarters-economy enterprises prescribed in Article xiii of the Opinions should be given a one-off subsidy worth of 30 percent of the 12-month rental market value if they rent offices in the demonstration base for their own use. For those recognized as headquarters-economy enterprises which register and establish in 2010 or afterwards in Guangzhou, their newly built or purchased office properties should be given a subsidy worth of 30 percent of the actual turned-over property tax received by the local taxation bureau within 3 years from the month of the completion or purchase of the office. This subsidy enjoyed by each headquarters-economy enterprises shall not exceed RMB 5 million yuan in principle. The office building cannot be leased or sold and its main usage cannot be changed during the subsidy period.