EN /

Policy Interpretation of “Ten Policies and Measures for Foreign Investment”

2017-12-06 15:18:00  GDCOM

  Note: This English version is the unofficial translation served as a reference. In case of discrepancies in the English and translations, please note that the original Chinese text is the official text and shall prevail.
 
Policy Interpretation 
 
  I Further Expand Areas of Foreign Investment Market Access
  
  1. To promote the expansion of opening-up areas. In line with the deployment of Notification of the State Council on Measures to Promote the Growth of Foreign Investment, the following areas will gradually undertake further opening-up: To ease the restrictions on the foreign equity shares of special vehicles and new energy vehicles in the manufacturing sector; To remove the foreign equity limit of the construction and operation in the service sector, such as ship design, regional and general aircraft maintenance, human resource service agencies, international maritime transport companies, railway passenger transport and petrol station . To allow foreign investment to conduct investment in the business place of the Internet online service and contact centers, and to ease the business scope restrictions of wholly foreign-owned performance brokers; To extend the restrictions on the foreign equity shares and business scope of foreign-invested banks, securities companies, securities investment fund management companies, futures companies and life insurance companies in the financial sector. The above-mentioned 11 restrictive foreign-invested industries account for 30% of the total number of the categories of restrictive foreign investment industry. 
  
  II Increase Financial Incentives for Foreign Investment
  
  2. The foreign invested entity economic projects reach a certain scale shall be rewarded in proportion to the amount of investment accordingly. From 2017 to 2022, the new projects (excluding real estate, finance industry and similar financial industry, the same below) with annual actual foreign investment (excluding foreign shareholder loan, the same below) of more than $50 million dollars, the capital-increase projects with more than $30 million dollars and headquarters of multinational companies or the regional headquarters of transnational companies with more than $10 million dollars will be rewarded not less than 2% of its actual foreign investment of the year by the provincial financial funds, the highest reward can be 100 million yuan.
  The reward objects of this policy are mainly manufacturing and producer services projects and identified foreign multinationals headquarters or regional headquarters. The classification of industries is in line with the Industry Classification Standard of National Economy of the People’s Republic of China; The regional headquarters or regional headquarters of the multinational companies shall be determined by the commercial departments, and the relevant measures shall be announced separately by the Department of Commerce of Guangdong Province. 
  Case 1: 1. A medical equipment manufacturing enterprise was established in March 2017 with an actual foreign investment of $60 million dollars; In 2018, its actual foreign investment is $30 million dollars; In 2019, its actual foreign capital is $100 million dollars, including foreign shareholder loan of $20 million dollars; In 2020, its actual foreign capital is $800 million dollars. To presume that the exchange rate of US dollars against RMB is 1:6.6, in line with the lowest reward proportion of 2%, this enterprise can be rewarded 7.92 million yuan in 2017 (6000*6.6*0.02), 0 yuan in 2018(due to fail to meet the reward standard) , 10.56 million yuanin 2019[(10000-2000) *6.6*0.02] , and 100 million yuan in 2020 (the highest reward is 100 million yuan).
  Case 2: A real estate company was set up in March 2017 with a foreign capital of $100 million, while it cannot get any financial reward in 2017 (not the targeted entity of the policy).
  Case 3: An electronic components manufacturer was established in 2002, and it has increased the investment of $30 million in 2017 and paid it in. From 2018, it will increase capital of $50 million and paid in two years with $25 million per year, which will be fully paid in June 2019. Therefore, the company will receive a reward from the provincial financial funds of 3.96 million yuan (3,000 *6.6 *0.02) in 2017, while 0 yuan in 2018 and 2019 (fail to meet the reward standard).
  
  3. The Global Fortune 500 companiess and global industry leading enterprises invest projects in Guangdong Provinces and in conformity with the regulations will be given key support through “one discussion upon one project.” For the Fortune Global 500 enterprises (the list of Fortune shall prevail, hereinafter inclusive), global industry leading enterprises newly set up (including capital increment) manufacturing project with the actual foreign investment of more than $100 million, a newly-established IAB with an actual investment of no less than $30 million (new generation of information technology, intelligent equipment, biological medicine) and NEM (new energy, new material) manufacturing projects and the foreign R&D institutions with independent legal person qualification, can enjoy tailored support policies (including capital support) through “one discussion upon one project”.
  
  4. The headquarters or regional headquarters of a foreign multinational company in Guangdong will be given financial rewards in line with its contribution. The regional headquarters that has contributed over 100 million yuan to the provincial financial year for the first time, will be given a one-time reward of 30 percent of the provincial financial contribution, with a maximum award of 100 million yuan.
  Case: A foreign-funded enterprise was established in Guangzhou in 2008 and identified as the regional headquarter of a transnational corporation in 2017, its contribution to the provincial finance in 2018 and 2019 is 85 million yuan and 90 million yuan respectively, and it exceeds 100 million yuan in 2020 for the first time, reaching 130 million yuan, and contributes 120 million yuan in 2021. The company meet the standard in 2020 and can get a reward of 39 million yuan (130 million yuan * 0.3) in 2020. In 2021, it is not the first time for the company to contribute more than 100 million yuan, so the provincial finance no longer grants rewards. 
  
  III Strengthen Safeguard of Land Use of Foreign Projects
  
  5. To clarify that foreign-invested enterprises enjoy the preferential land policy of "Ten Items for Real Economy Cost Reduction". Manufacturing enterprises with foreign investment will enjoy the relevant preferential policies in accordance with Notification of Policies and Measures on Reducing the Cost of Manufacturing Enterprises and Support the Development of Real Economy of Guangdong Province by People’s Government of Guangdong Province(No. 90 document by People’s Government of Guangdong Province in 2017, Ten Items for Real Economy Cost Reduction for short).
  On the basis of Ten Items for Real Economy Cost Reduction, the enterprises can enjoy the following land-use preferential policies: To allow manufacturing enterprises with foreign investment to divide its industrial property rights by taking one building or one storey as a basic unit, for introducing industrial projects of relevant chain partners. For preferential-developed industrial projects with foreign investment and intensive land use, the land transfer floor price can be determined by 70% of the lowest price standard of industrial land. To undertake flexible year leasing for industrial land, the yearly revised coefficient can be determined in accordance with the specific value between lease term and available maximum term (50 years), and thus to determine the floor lease price. Under the premise of being conformity with the planning and not changing the purpose, to rebuild, expand and use underground space of the industrial land and warehouse land, improve the plot ratio and building density, will not be collected the land price difference any longer.  
  
  6. To guarantee the land for key foreign-invested projects. The land use of manufacturing projects with an actual foreign investment of more than 1 billion yuan and that of self-built office property of the headquarters or regional headquarters of Fortune Global 500 enterprises and leading enterprises in different industries around the world(hereinafter referred to as key foreign headquarters)  will be jointly arranged by the provincial and prefectural governments in line with land-use planning indicators. 
  When distributing and delivering the annual land-use planning indicators to the municipal levels, the provincial government will fully take into consideration the land demand of foreign-invested manufacturing projects with an actual investment of more than 1 billion yuan and self-built offices property of key foreign headquarters and give support to the relevant cities; After receiving the land-use planning indicators from the provincial government, the municipal governments should arrange and give priority to it accordingly.
  
  7. To support the separate registration and transfer of property rights of the eligible foreign-funded enterprises. To allow separate registration and assignment by taking one building or one storey as a basic unit towards their property rights for the foreign-invested high standard factories and key foreign headquarter self-built office properties, The accumulative acreage for the separate registration and assignment regional of the self-built properties of regional headquarters shall not exceed 40% of the total construction area.
  To allow separate registration and assignment by taking one building or one storey as a basic unit towards their property rights for the foreign-invested high standard factories and key foreign headquarter self-built office properties, and they can accordingly transact the registration procedures in real estate registration department, the property rights of which can also be transferred. The accumulative acreage for the separate registration and assignment regional of the self-built properties of regional headquarters shall not exceed 40% of the total construction area.
  
  8. To encourage foreign-invested enterprises to lease the land. The foreign-invested enterprises that lease industrial lands can determine the yearly revised coefficient when being sure of the basic lease price according to the specific value between its lease term and available maximum term; The lease contract and payment voucher signed with land department can be used for transacting planning and reporting procedures; During the lease term, the above-ground buildings, structures and ancillary facilities can be subleased and mortgaged. 
  For the occasion of providing industrial land to the foreign-invested industrial projects on a rental basis, the yearly revised coefficient can be determined in accordance with the specific value between lease term and available maximum term (50 years), and thus to determine the floor lease price. The foreign-invested enterprises that lease industry lands for construction projects can use the lease contract and payment voucher signed with land department to transact planning and reporting procedures without the approval of construction land. During the lease term, the above-ground buildings, structures and ancillary facilities can be subleased and mortgaged.
  
  9. To guarantee the resettlement land for foreign-invested enterprises who meet the conditions. The government has implemented the reconstruction of the old city, which can be negotiated or leased to rearrange the industrial lands for foreign industrial projects that need to be relocated. 
  For the foreign industrial projects that need to be relocated due to the implementation of urban and rural planning and reconstruction of the old city, if the project is in conformity with the national industrial policy, the land could be retrieved and it will receive financial compensation. In addition, after being approved by municipal or prefectural territorial resources departments and reporting to the people’s government of the same level, the department concerned will also rearrange the industrial lands for foreign industrial projects that need to be relocated through approved selling or leasing.
  
  10. To encourage the transformation of foreign-invested manufacturing enterprises. The foreign manufacturing enterprises that utilize the stock industrial real estate to develop productive service industry and establish spaces for makers and innovation workshops can use the land according to the original purposes and types of land use in the first five years, and transact in accordance with relevant provisions after the first five years. 
  The foreign-invested manufacturing enterprises that set up independent legal entity through whole or partial transformation and system-transition, if utilizing stock industrial real estate to carry out such business and service as R&D and design, investigation, transformation of scientific and technological achievements, information technology services, software research and development, intellectual property rights, integrated science and technology, energy conservation, environmental protection, etc., or pursuing integrated development of manufacturing, cultural creativity, science and technology service industry, can enjoy the transitional policy of using the land according to the original purpose and the type of land rights without transacting the land use changing procedures. The transitional supportive policy shall be limited to 5 years, at the expiration of 5 years, the assignment required land formalities shall be handled through negotiation according to the new application, new the type of rights and the market price.
  
  11. To encourage foreign investors to build public service projects with the government. Such public service projects as medical treatment, education, culture, pension, sports, etc. jointly funded by foreign investment and government that can use allotted land is allowed to supply state-owned construction land through investment or shares buying. 
  The Opinions of the General Office of the State Council on Further Stimulating Investment in Social Sectors ( No. 21 document by the General Office of the State Council in 2017) indicates that "The new-supplied lands for such areas as medical treatment, pension, education, culture, sports, etc. which are conform to the catalogue of allocated land, can be provided according to transfer settlement. The projects that can used allotted lands are encouraged to supply lands through transferring and leasing on a voluntary basis, to support the municipal and prefectural governments to supply lands through investment of use rights or share buying of the state-owned construction land together with the social capital investment". Such public service projects as medical treatment, education, culture, pension, sports, etc. jointly funded by foreign investment and government that can use allotted land is allowed to supply state-owned construction land through investment or shares buying.
  
  IV Support the R&D Innovation of Foreign Investment

  12. To support foreign R&D institutions to participate in the construction of public service platform and government science and technology projects in Guangdong Province. To support foreign R&D institutions (including internal research and development institutions of enterprises) to participate in the construction of R&D public service platform and government science and technology projects in Guangdong Province and enjoy matching funds support. At present, Guangdong Province supports foreign R&D institutions to participate in the construction of public service platform and government science and technology projects in the form of international cooperation projects, the application funds will be jointly managed with the cooperation units in Guangdong who also serve as the application subject. However, according to the relevant national fiscal policy, funds are only available for using in China currently.
  
  13. To grant financial assistance to the foreign-funded research and development institutions who meet the requirements.
  Firstly, the foreign R&D institutions designated as new research and development institutions by provincial financial fund can be given a reward of no more than 20% of the research and development expenditure quota of the previous year that supported by non-financial resources, with the reward received by individual institution no more than 10 million yuan (Institutions that have already received rewards from other financial departments at all levels shall not be supported). 
  Secondly, those recognized as postdoctoral workstations and Chinese Academy of Sciences and Chinese Academy of Engineering academicianworkstations can receive a maximum reward of 1 million yuan. The Opinions on Advancing the Innovation Development of Doctoral and Postdoctoral Talents in Guangdong Province (Protocols) is formulating currently in Guangdong Province, which would provide start-up funds to the new post-doctoral research stations. The foreign R&D institutions setting up post-doctoral scientific research workstations with the approval of Ministry of Human Resources and Social Security of People’s Republic of China will be given 300 thousand yuan at one time when the postdoctoral researchers start career in the station. In the following two consecutive years, if the number of postdoctoral researchers in the station is 5-10, or more than 10, the workstation can receive 300 thousand yuan or 700 thousand yuan respectively. 
  Thirdly, the enterprises that are registered in Guangdong Province with independent legal person qualification identification as the provincial enterprise technology center yet without fiscal fund support from enterprise technology center, that are equipped with strong technical strength or higher scientific research level and sound financial management structure and financial management system, as well as has paid taxes in accordance with the law (except for construction enterprises), can receive rewards. The rewards will be given afterwards and reviewed by experts organized the Economic and Information Commission of Guangdong Province and Department of Finance of Guangdong Province. The reward for individual project is no more than 2 million yuan, and the fiscal reward amount shall not exceed 40% of investment of the purchase of equipment and software. The financial capital should be used to purchase equipment and software. 
  Besides, the foreign R&D institutions with independent legal person qualification newly-established by world top 500 enterprises can be given key personalized support in the fields of finance, land, products market access and industrial development fund through “one discussion upon one project” by the municipal and provincial governments. 
  
  14. To support foreign drug companies to enter Guangdong market. In the process of adjusting the medicine directory with national authorization, Guangdong Province will open the Green Channel under the authority of the state for the foreign medicine marketing authorization holder approved to list the new first-class medicine of the national large varieties and carried out production and settlement in Guangdong Province, and give priority to its incorporating of the list of medical insurance medicines in Guangdong and link up with drug price negotiations and centralized purchasing work, so as to support the industrialization of foreign R&D achievements in Guangdong. The foreign drug marketing authorization holder in this policy refers to the foreign-invested drug research and development institutions or pharmaceutical production enterprises that set up in accordance with the law, can independently bear the responsibility, be able to implement The Drug Administration Law of the PRC and other laws and regulations related to drug registration applicant, and perform the corresponding obligations bear legal responsibilities in the aspects of pharmaceutical research and development, registration, production, distribution, monitoring and evaluation.
  
  15. To implement preferential taxation policies for foreign R&D institutions. 
  Firstly, the recognized foreign research and development centers that import technology development supplies will be given tax exemption and tax refund. According to the regulations of the Notification of Ministry of Finance, Ministry of Education, National Development and Reform Commission, Ministry of Science and Technology, Ministry of Industry and Information Technology, Ministry of Civil Affairs, Ministry of Commerce, General Administration of Customs, State Administration of Taxation, State Administration of Press, Publication, Radio, Film and Television on the Tax Policy of Management Measures of Supporting Technological Innovation Import (No. 71 document in 2016 ), and The Notification of Ministry of Finance, Ministry of Commerce, State Administration of Taxation on Continuously Implementing the Value-added Tax Policy for Foreign Research and Development Institutions to Purchase Equipment (No.121 document in 2016), the foreign R&D center shall be approved or confirmed by commercial departments in accordance with the relevant regulations. The recognized foreign research and development centers that import technology development supplies can apply to regional customs office for the exemption of tariff, and apply to tax departments for refunding when purchase domestic equipment. The detailed rules and procedures have been formulated and issued by the Department of Commerce of Guangdong Province together with have been formulated with Department of Finance of Guangdong Province, Guangdong Provincial Office, SAT, and Guangdong Sub-Administration of China Customs. 
  Secondly, to conduct tax exemption for foreign invested enterprises that provide technical services. According to the Notification of the Ministry of Finance and Sate Administration of Taxation on the Comprehensive Introduction of VAT Reform (No. 36 document in 2016), Technology transfer refers to the business activities of transferring technology ownership or the use of the right, the technology of which includes patent technology and non-patented technology. Technological development refers to the research and test development of new technologies, new products, new processes or new materials and their systems. Technological consultation means to carry out feasibility studies, technical forecasts, technical surveys, and analysis and evaluation reports on specific technical projects. The technological consultation and technological services related to technology transfer and technological development refer to the transferor (or entrusted party) help the transferee (or entrusting party) to master the transferred technology (or entrusted the development of technology) and provide technological consultations and technological services business according to the regulation of technical transfer or development contract, and the price of the technological consultation and technological services shall be issued on the same invoice with the price of technology transfer or technological development. When apply for the exemption of value-added tax, the eligible taxpayers must hold the written contract of technology transfer or technology development to the provincial science and technology departments for identification, as well as submit related written contract and audit opinion documents of science and technology department to the competent tax authorities for future reference.
  Thirdly, to give preferential income tax to technology advanced service enterprises. According to the Notification of the State Council on Measures to Promote the Growth of Foreign Investment (No. 39 document in 2017 ) and Notification of the State Council, State Administration of Taxation, Ministry of Commerce, Ministry of Science and Technology and Development and Reform Commission on Promoting the Income Tax Policy of Technology Advanced Service Enterprises to the Whole Nation (No. 79 document in 2017 ), To promote income tax preferential policies for the eligible technology advanced service enterprises in service outsourcing model cities to the whole country. The technology advanced service enterprises that have been recognized by the provincial departments of science and technology, commerce, finance, taxation, development and reform shall be levied at the rate of 15% for enterprise income tax. The expenditure of education for the employees of the technology advanced service enterprise shall not exceed 8% of the total salary, which shall be deducted when calculating the taxable income amount. The exceeding part shall be deducted in the subsequent annual payment of the tax. Previously, only qualified enterprises in Guangzhou and Shenzhen can enjoy preferential policies. 
  
  16. To simplify the clearance procedures for research and development materials. The foreign R&D centers can willingly choose the mode of advance inspection, booking customs clearance and articles release when import equipment, reagents and samples for research and development.  
  According to the Regulations for the Implementation of the Law of the People's Republic of China on Import and Export Commodity Inspection, the consignee of the imported commodities should submit the entry-exit inspection and quarantine institution of the customs declaration. Within 20 days after customs clearance, the consignee should apply to the entry-exit inspection and quarantine institution of the customs declaration. From the perspective of facilitating the import and export enterprises and improving the efficiency of customs clearance, the inspection and quarantine departments shall allow the import and export enterprises to choose to declare the goods in advance after the goods arrive at the port on the basis of their actual conditions. Regulations for the Administration of Entry-Exit Inspection and Quarantine Procedures and the Notice on Simplifying Inspection and Quarantine Procedures and Improving the Efficiency of Customs Clearance(No. 89 document in 2017), have innovated the new mode of approval, clearance and supervision, so the entry and exit goods can get approval and clearance under the precondition of meeting requirements in the enterprise credit rating, submitting qualified guarantee and not being chosen, namely, after being approved, the entry and exit goods will receive clearance documents without inspection or laboratory tests, so the efficiency of cargo clearance will be greatly improved. At the same time, with regard to the products needed for scientific research and testing and the parts imported for the production line and for assessing technology, enterprises can apply for Exemption from Compulsory Certificate. The customs provide booking clearance services for foreign R&D centers to import research and development equipment, reagents and samples provide, allow clearance in non-working hours. After the on-the-spot clearance booking, the customs will work overtime to provide services for the goods mentioned above of related R&D centers.
  
  V Intensify Financial Support to Foreign Investment Development
  
  17. To increase support for industrial funds. To give key support to World Top 500 enterprises, global industrial leading enterprises and round-trip investments of major multinational M&A projects in the way of equity investment through the Guangdong Industry Development Fund. 
  To include foreign investments into the support scale of Guangdong Industrial Development Fund, to implement “one discussion upon one project " to the eligible foreign-invested projects by reference to the current business capital equity investment mode of financial management funds, and give support in the way of qualified foreign investment projects. After the expiration of the agreed investment, equity investment will quit through such marketization modes as major shareholder buyback, being listed, equity transfer, etc. Apart from that, the “one project one consultation” method can be applied accordingly. During the joint stock period, based on the contract agreement, Guangdong Industry Development Fund will not take part in the project benefit,  and quit at a lower return rate or surrender profits to the foreign-invested enterprises as bonus to the foreign invested projects.
  
  18. To undertake "the NRA +" pilot in Guangdong Pilot Free Trade Zone. To explore "the NRA +" pilot in Guangdong Pilot Free Trade Zone by relying on local NRA of foreign institutions, support the foreign invested enterprises in the zone to conduct fully cross-border two-way financing for domestic and foreign currency, and obtain domestic and foreign currency financing within 2 times net assets of external debt; To issue bonds in and out of the region, allow companies to reuse the repatriated funds raised abroad.
  According to the Notification of People's Bank of China on the Macro-prudential Management Affairs of Fully Cross-border Two-way Financing (No.9 document in 2017), foreign invested enterprises can integrate the domestic foreign currency funds from non-residents within 2 times net assets. If the difference between investment and registered investment of the foreign-invested enterprises is higher than two-times net asset, then it is possible to integrate the foreign currency funds from non-residents within the range of the difference. In accordance with the Notification of People's Bank of China Guangzhou Branch on Supporting of China (Guangdong) Free Trade Pilot Zone to Expand the Cross-border Use of RMB (No.43 document in 2016), if the foreign-invested enterprises within the Pilot Free Trade Zone that issue RMB bonds abroad, raise money and recycle in the Pilot Free Trade Zone as required, the recycling capital shall be used strictly according to the relevant provisions of the bond prospectus; The foreign shareholders of foreign-invested enterprises in the Pilot Free Trade Zone who issue RMB bonds in China and raise funds for the foreign-invested enterprises shall be exempted from quota management of the macro-prudential fully cross-border financing.
  
  19. To support the centralized operation of funds of transnational corporations. To support transnational enterprise groups to establish two-way cross-border RMB capital pool in Guangdong Free Trade Zone. 
  In accordance with the Notification of People's Bank of China Guangzhou Branch on Supporting of China (Guangdong) Free Trade Pilot Zone to Expand the Cross-border Use of RMB (No.43 document in 2016), transitional enterprise groups can choose the member enterprise registered in Guangdong Pilot Free Trade Zone as the host company to form a two-way cross-border RMB capital pool. And the domestic member enterprise whose total revenue shall not be less than 500 million yuan and that of overseas member enterprise shall not be less than 100 million yuan. The capital pool will carry out bidirectional upper limit management, and the upper limit shall be the accrued equity of the owner in the pool. Compared with national policy, this policy specialized for the Pilot Free Trade Zone has lowered the threshold for the transnational enterprises in Pilot Free Trade Zone to conduct two-way cross-border RMB pool business, facilitating the centralized operation of cross-border funds for transnational enterprise groups, which is conducive to improve the efficiency of enterprise capital operation and reduce the financial cost.
  
  20. To support domestic direct financing of foreign-invested enterprisesThe domestic direct financing of foreign-invested enterprises enjoys the same support policies as the listing private enterprises in the province, listing on “National Equities Exchange and Quotations" and the financing of regional equity market.
  
  VI Enhance Talent Support to Foreign Investment Development
  
  21. To implement “Guangdong Superior Talent Card”. To include the senior management personnel in foreign-invested enterprises and other seven categories of talents into the service objects, and gradually expand the use of “Guangdong Superior Talent Card” as proof of identity in Guangdong Province. 
  In accordance with the requirements of Opinion On Deepening the Reform of the Institutional Mechanism for Talent Development, The high-level personnel identified by personnel departments can enjoy the same treatment with the local residents in the aspects of social insurance, purchasing houses and vehicles, professional title appraisal, etc., and priority facilitation services in locating, entry and exit, long-term residence, permanent residence, health care, children schooling, job arrange for spouses, social insurance, living in talent apartments, etc. by using the card. At present, the relevant implementation measures of “Guangdong Superior Talent Card” service are still being worked out. “Guangdong Superior Talent Card” will implement "all-in-one-card" service, the service objects of which include senior management personnel of enterprises with foreign investment, the middle and senior management personnel of regional headquarters, the high-level research and development staffs of foreign R&D institutions, high-value PCT international patent inventors, project experts of World Skills Competition, superior talents from Hong Kong, Macau and Taiwan employed by foreign-invested enterprises and other 7 categories of talented persons, as long as they are conform to the application conditions for the “Guangdong Superior Talent Card”, according to the regulations, they will be available on the same preferential treatment and facilitation services with the local residents in entry and exit, children schooling, social insurance, health care, finance, house purchasing, tax, etc.
  
  22. Title Identification of returned innovation talents. The high-level overseas returned talents who have come back to work in foreign R&D institutions can be directly identified senior titles.   
  High-level overseas returned talents refer to the overseas students who have engaged in scientific research, teaching, engineering technology, finance, management, etc. and achieved remarkable results after graduation, being the much-needed talents in China, such as, senior management personnel, senior professional and technical personnel, technical academic leaders, and the talents owned patents, inventions or proprietary technology with better industrialization development prospect. According to the regulations of Opinion on the Further Reform of the Professional Title Evaluation of Scientific and Technical Personnel ( No. 4document in 2015), the high-level talents, such as, the persons included in “The Recruitment Program of Global Experts”, national candidates of Millions of Talent Projects, the persons includes in “Introduction of Leading Talents in Guangdong” or foregoers of “Introduction of Scientific Research and Innovation Team in Guangdong ”, can be directly identified senior titles, and the Outstanding Contribution Evaluation Committee of Guangdong Province will be responsible for the organization and implementation work. According to the spirits of Notification of General Office of the Communist Party of China and General Office of the State Council on Deepening the Reform of Professional Title System(No.77 document in 2016) , which is “to ease restrictions on the conditions seniority and fixed number of years, and to set up green channel in professional title evaluation for overseas high-level talents and the much-needed talents”,  the approved overseas high-level talents who are in conformity with the requirements of the qualification conditions can be identified directly as senior titles with reference to high-level personnel identifying method by Outstanding Contribution Evaluation Committee of Guangdong Province.
  
  23. To clear up the convenient measures for foreign talents. The designated foreign high-level talents can enjoy the convenient measures such as entry and exit, residence and employment of foreign homemaking workers.
  According to Approval on the implementation of Exit and Entry Policies and Measures Concerning Supporting the Construction of Guangdong Free Trade Zone and Innovation-driven Development in Guangdong Province and Approval on the Identification Standard for Foreign High-level Personnel to Apply for Permanent Residence, the identification work for the four categories of foreign high-level personnel outside the Guangdong Free Trade Zone (famous awards winners or candidates of high-level personnel plan, overseas well-known experts and scholars, foreign high-level innovational and enterprising talents and other personnel with special expertise, being the talents in urgent need to Guangdong), will be dealt with by the departments specialized for foreign experts of the city, and reported to Provincial Administration of Foreign Experts Affairs for approval and issuance of the confirmation letter, which will be submitted to the Exit and Entry Administration of Department of Public Security for convenient measures such as applying visa, residence permit and hiring foreign homemaking workers. With the personal guarantee and employment contracts, the high-level talents from other countries or from Hong Kong, Macao and Taiwan who have obtained permanent residence or work permits in China can apply residence permit for personal permit (with the note of “household service”) of corresponding period for their hired foreign homemaking workers.
  
  24. To further simplify the entry and exit procedures for talents. Guangdong will gradually promote six exit and entry policies and measures for talents in support of the construction of Guangdong Pilot Free Trade Zone. Approved by the Ministry of Public Security, from August 1, 2016, Guangdong Province has implemented the Exit and Entry Policies and Measures Concerning Supporting the Construction of Guangdong Free Trade Zone and Innovation-driven Development in Guangdong Province (hereinafter referred to as 16 exit and entry policies, including 10 applies to the entire province, 6 for Guangdong Free Trade Zone), so as to provide convenience for foreign high-level personnel’s entry and exit, short-term residence and permanent residence. Agreed by the Ministry of Public Security, Department of Public Security of Guangdong Province plans to promote the 16 exit and entry policies which applied to Guangdong Free Trade Zone to the administrative region (namely Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, Zhaoqing) in Pearl River Delta Area Independent Innovation Demonstration Zone and Sino-German Metal Eco City in December 2017.  
 
  VII Reinforce Intellectual Property Protection of Foreign Projects
  
  25. To speed up the construction of China (Guangdong) Intellectual Property Protection Center. The State Intellectual Property Office of the P.R.C has officially approved the construction of China (Guangdong) Intellectual Property Protection Center, for carrying out collaboration protection of intellectual property rights towards a new generation of information technology and biotechnology industry. Guangdong hopes to rely on the center, first to realize the goal of "rapid”: from the fast investigation of the single designs to such three patents as inventions, utility models and designs and the invalid request. Second is to achieve the goal of "large-scale" protection of intellectual property rights: to build an intellectual property rights protection network covering key industries in the entire province, so as to set up an intellectual property service innovation chain from research, development and application to protection. Third is the realization of the "strict protection", to build cooperation mechanism for intellectual property rights protection, and form a collaborative system for the protection of intellectual property that connected by examination and approval, rights protection aids, conciliation and arbitration, administrative law enforcement and judicial aid.
  
  26. To introduce the system of intellectual rights protection for major foreign-invested enterprises. According to Opinion of People’s Government of Guangdong Province on the Innovation-driven Development of Intellectual Property Service, Guangdong Intellectual Property Office establishes intellectual property protection system for key enterprises according to the policy of “motivate to create, protect in accordance with the law, improve efficiency, promote application” and combined with the demand of enterprise in the aspect of intellectual property protection, and to build convenient response channel for intellectual property rights in major enterprises, so as to solve enterprises’ difficulties and problems related to the protection of intellectual property rights. High-tech enterprises and patent intellectual property rights growth-type enterprises whose patent application or holding quantity is more than 30 can be considered as miniciple key enterprises of intellectual property rights protection, and whose is more than 100 can be applied to be provincial key enterprises of intellectual property rights protection.  
  
  27. To promote the construction of trademark business acceptance windows. Trademark business acceptance windows include enterprise trademark registration and pledge windows, which were only available in Trademark Office of the State Administration for Industry and Commerce of the P.R.C. After the implementation of this measure, the registered trademark application window of Zhuhai Hengqin New Area Administration for Industry and Commerce and Shenzhen Administration for Industry and Commerce will accept relevant business applications. Besides, Trademark Examination Cooperation Center (Guangzhou Branch Center) of Trademark Office of the State Administration for Industry and Commerce and Guangzhou Trademark Office will also accept enterprise trademark registration. 
  
  28. To encourage foreign enterprises to apply for patents in China. Their inventions, discoveries and other scientific and technological achievements may be involved in the evaluation of various awards at all levels in Guangdong Province. 
  To encourage and support eligible foreign-invested enterprises to participate in the evaluations of patent awards in accordance with the Patent Award Evaluation Measures in China and Patent Award Evaluation Measures in Guangdong Province. According to the regulations of Science and Technology Award Incentives of Guangdong Province, the Science and Technology Award of Guangdong Province aim to reward citizens and organizations that have made outstanding contributions to the progress of science and technology in the province. The programs applied for provincial science and technology awards must conduct research and development, application and promotion within the jurisdiction area of Guangdong Province, or belong to the achievements that first completed in Guangdong or first researched and developed through domestic and foreign cooperation. At present, the above conditions should be met to implement the evaluation.
  
  VIII Improve the Level of Investment and Trade Facilitation
  
  29. To delegate a batch of permissions. To entrust the 18 items of provincial administrative licensing matters concerning the establishment and change of foreign-funded enterprises in such fields as medical institutions, travel agencies, gas stations to the relevant departments of people's governments at municipal level or above in accordance with the law, and gradually entrust to management committees of state-level development zones after conditions becoming mature. 
  The 18 items of provincial administrative licensing matters include: the establishment and change approval (contract and regulations) of the enterprises with foreign investment (Department of Commerce of Guangdong Province) in the areas of cinemas, for-profit medical institutions, travel agencies, gas stations and shipping design (with piecewise); The approval of foreign investment projects that must be conducted by Guangdong Provincial Development and Reform Commission; The approval of foreign restricted technical transformation projects in industrial and information fields which must be approved by the Economic and Information Commission of Guangdong Province; Examination and approval of retail business qualification of refined oil products (Economic and Information Commission of Guangdong Province); The establishment and approval of Sino-foreign joint venture talent agencies and job-introduction agencies (Guangdong Human Resources and Social Security Office); The land-use pre-examination for foreign-funded construction projects in the state-level development zones that managed by the province (except for the construction projects of administrative buildings that shall be reported to and approved by the National Development and Reform Commission and People’s Government of Guangdong Province) (Department of Land Resources of Guangdong Province); The examination and approval of the environmental impact report of the construction projects (Department of Environmental Protection of Guangdong Province); The approval of foreign-invested road transport industry (Department of Transportation of Guangdong Province); Approval of international shipping management business (Department of Transportation of Guangdong Province); Approval of the soil and water conservation program for production and construction projects (Water Resources Department of Guangdong Province); Examination and approval of foreign-invested medical institutions (Health and Family Planning Commission of Guangdong Province); Establishment, registration, change and cancelation of foreign-invested enterprises and their branches (Administration for Industry and Commerce of Guangdong Province); The approval of foreign-funded cinemas (Administration of Press, Publication, Radio, Film and Television of Guangdong Province); The business license of foreign-invested travel agencies (Tourism Administration of Guangdong Province).
  
  30. To integrate taxation convenient measures.  
  Firstly, to allow head offices and branches of foreign-invested enterprises that carry out trans-regional operation in Guangdong Province and have independent legal person qualification to pay VAT on a consolidated basis and their branch offices can pay it in the local places. According to the Article 22 of The Provisional Regulations on Value Added Tax of People's Republic of China, it points out that the fixed service shall make tax declaration to the local competent tax authorities, if the head offices and branches are not in the same county (city), they should report to local tax authorities respectively. In accordance with the Notification of Ministry of Finance and the State Administration of Taxation on the Policies of Paying Value-added Tax on a Consolidated Basis for the Head Offices and Branches of Fixed Business Subjects ( No.9 document in 2012), with the approval and agreement of departments of finance and administrations of taxation, the head offices and branches are not in the same county (city), but in the same province (area, city), can make value-added tax declaration to the local tax authorities by the head offices. Therefore, the head offices and branches of foreign-invested enterprises that carry out trans-regional operation in Guangdong Province shall make tax declaration respectively, and the enterprises can pay value-added tax on a consolidated basis with the approval and agreement of the Departments of Finance of Guangdong Province and Guangdong Office of State Administration of Taxation. 
  Secondly, the eligible foreign investors directly invest encouraging investment projects by using the profit distributed from the domestic enterprises will conduct deferred tax policy and are not required withholding tax. In line with the deployment of Notification of the State Council on Measures to Promote the Growth of Foreign Investment, the eligible foreign investors directly invest encouraging investment projects by using the profit distributed from the domestic enterprises will conduct deferred tax policy and are not required withholding tax. The measure should be implemented after the issuance of detailed operational rules by Ministry of Finance and the State Administration of Taxation. 
  
  31. To reduce the time limit of business transaction. To further standardize the government's examination and approval authority and standards, optimize the approval process for enterprises' investment, and compress the existing investment approved items and approval times by a quarter. The time limit of business transaction will be promised to be less than one half of the legal limit for the work permits and residence permits for foreigners. To optimize the approval process of the flexible working hour system and comprehensive calculation working hour system, and reduce the time limit of business transaction by a third of the legal time limit. To promote "Single Window" of international trade in all the ports of Guangdong Province, reducing the time of goods clearance by a third. 
  
  IX Optimize the Environment for Foreign Investment in Key Parks 
  
  32. To optimize the administrative examination and approval mode of national development zones. To support qualified national development zones to implement the administrative examination and approval authority model and "one-seal for examination and approval".
  The Notification of State Commission Office of Public Sectors Reform and Legislative Affairs Office of the State Council on the Issuance of the Pilot Scheme of Relatively Concentrative Administrative Licensing Rights ( No. 16 document in 2015) has considered Guangdong Province as the first batch of pilot provinces, which are required to organize and undertake the exploration of the implementation patterns of relatively concentrative administrative licensing rights in accordance with the requirements based on the principle of simplicity, unity and effectiveness. Within the limitations of establishment of institutions, the national development zone can implement the model of examination and approval administration, and "one-seal for examination and approval" is expected to be conducted, and the pilot work plan shall be reported to and approved by the provincial CPC committee and the provincial people’s government through the municipal CPC committee and the municipal people’s government. 
  
  33. To support foreign direct investment in the parks. The newly established foreign investment projects in the provincial industrial parks (including the industrial transfer park and the parks enjoying the industrial transfer policy) will enjoy preferential policy by reference to financial support policy of industry co-construction. 
  The newly established foreign enterprises in the provincial industrial park, since the beginning of production, will be given inclusive reward of 40%, 20% respectively in its first three years and 4th -5th years according to their financial contribution to the local government; A certain amount of superposition award will be given  in accordance with the provisions if there is following situation, the manufacturing enterprises in the industrial parks invested (holding) by large backbone enterprises, World Top 500, China Top 500 companies (including wholly owned subsidiaries and holding companies), will be rewarded according to 30% of the proportion of fixed assets investment of the year, the highest reward can be 100 million yuan; The enterprises that set up foreign-funded R&D institutions, identified as national high-tech enterprises, included into the provincial high-tech enterprise incubation base, will be awarded separately. 
  Besides, the management of provincial development zones in the northwest of Guangdong Province will be placed under the management of provincial industrial transfers parks, and enjoy the relevant supporting policies of provincial industrial transfer according to the regulations. 
  
  34. To delegate the approval authority of the expansion and location adjustment of provincial-level development zones to the lower levels. To delegate the examination and approval power of the expansion and location adjustment of provincial-level development zones to governments of and above the cities level and above and the examination and approval results will be submitted to the provincial government. 
  According to the Notification of Department of Commerce of Guangdong Province, Guangdong Provincial Development and Reform Commission, Department of Land Resources of Guangdong Province, Department of Housing and Urban-Rural Development of Guangdong Province on the Issuance of the Management Measures of the Establishment, Expansion and Location Adjustment of Provincial-level Development Zones, the expansion and location adjustment of provincial-level development zones shall be applied to the People’s Government of Guangdong Province by cities at prefecture level and above, and examined by the relevant provincial departments and submitted to the provincial government for approval. For further building major foreign investment attraction platform and giving greater decision-making power to the municipal governments on the construction of economic development zones, Guangdong Province will further simplify the approval process of the expansion and location adjustment of provincial-level development zones, the municipal people's government can authorize the expansion and location adjustment of provincial-level development zones according to the conditions and requirements of Management Measures of the Establishment, Expansion and Location Adjustment of Provincial-level Development Zones.
  
  X Improve the Mechanism for Foreign Investment Utilization
  
  35. To establish special coordination mechanism. To establish foreign investment attraction work coordination mechanism led by the main leadership of provincial and municipal governments, to coordinate and solve the key issues that restrict foreign investment attraction at regular intervals, especially the Fortune Global 500 enterprises in Guangdong.
  
  36. To integrate investment attraction resources. To integrate and optimize overseas economic and trade offices of Guangdong Province, and accelerate the construction of an international investment promotion system of Guangdong Province.