This English translation is for reference only. The Chinese version shall prevail in case of any inconsistencies.
Notice on Issuing the Support Measures for Promoting Science and Technology Exchanges and Cooperation between the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and Portuguese-speaking Countries
All relevant departments,
Support Measures for Promoting Science and Technology Exchanges and Cooperation between the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and Portuguese-speaking Countries has been approved by the Executive Committee of the Hengqin Guangdong-Macao Deep Cooperation Zone and are hereby issued for implementation. Should any issues arise during implementation, please report them to the Economic Development Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.
Economic Development Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
April 15, 2024
Normative Document No. 5/2024 of the Economic Development Bureau of the Executive Committee
Support Measures for Promoting Science and Technology Exchanges and Cooperation between the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and Portuguese-speaking Countries
Chapter I
General Provisions
Article 1.
Purpose of the Measures
To implement the Master Plan for the Construction of Guangdong-Macao In-Depth Cooperation Zone in Hengqin, these Measures are formulated to promote science and technology exchanges and cooperation with Portuguese-speaking countries, pool innovation resources, establish the Guangdong-Hong Kong-Macao Greater Bay Area as a key international hub for science and technology innovation, and support the moderate diversification of Macao’s economy.
Article 2.
Definitions
For the purposes of these Measures, the following definitions apply:
1. “Portuguese-speaking countries” refer to countries where Portuguese is an official language, including Angola, Brazil, Cape Verde, Guinea-Bissau, Equatorial Guinea, Mozambique, Portugal, São Tomé and Príncipe, and Timor-Leste;
2. “Controlling stake” refers to holding more than 50% of the capital in a limited liability company or more than 50% of the shares in a joint-stock company;
3. “Qualified institutional investors” refer to venture capital funds or privately offered investment funds that comply with the Interim Measures for the Administration of Startup Investment Enterprises (No. 39 of the National Development and Reform Commission and nine other departments) or the Interim Measures for the Supervision and Administration of Privately Offered Investment Funds (Order No. 105 of China Securities Regulatory Commission), have completed the required filing procedures, and operate in compliance with relevant regulations;
4. An “affiliated company” refers to a company that directly holds (excluding nominee shareholding) at least 50% of the shares of another company;
5. “Actual expenses” include costs related to venue rental, office equipment rental, venue setup, promotional and exhibition expenses, planning and design expenses, publishing and printing costs, books and materials, expert consultation fees, research and advisory fees, staff accommodation, translation services, travel and accommodation expenses for invited experts, honoraria for invited lecturers, vehicle rental, international or domestic travel and accommodation expenses for employees, etc. The following are not considered as actual expenses: donations, sponsorships, or investments; usage of conference fee for the procurement of fixed assets such as computers, copiers, and printers; costs related to organizing tourism or visits unrelated to conferences; accommodation, transportation, and other expenses for simultaneous interpreters, international or domestic travel and accommodation expenses for trainees (including transportation expenses to and from the airport); and any welfare-related expenditures or costs arising from additional obligations;
6. All monetary amounts stated in these Measures are denominated in Renminbi (RMB); and
7. The terms “more than”, “at least”, “or more”, “maximum”, “up to”, “not exceed”, “no more than”, “minimum”, and “no less than” shall be interpreted as inclusive of the stated value.
Article 3.
Recognition of Foreign-invested Science and Technology Enterprises from Portuguese-speaking Countries
A foreign-invested science and technology enterprise from a Portuguese-speaking country shall concurrently meet the following criteria:
1. The enterprise shall be registered in the Cooperation Zone, with its tax administration and statistical affiliation also established within the Zone. It shall possess independent legal person status and engage in substantive operations within the Zone, and primarily focus on the research, development, and industrialization of high-tech products and services; and
2. The investors of the enterprise shall be residents of Portuguese-speaking countries or legal persons lawfully established and operating in Portuguese-speaking countries for at least two years and hold a combined shareholding of no less than 25%. Shareholding may be either direct or indirect, but nominee shareholding is excluded.
The criteria for substantive operations shall be implemented in accordance with relevant provisions of the Rules for Determining the Substantive Operations of Enterprises in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (Normative Document No. 2/2023 of the Executive Committee).
If the same investor establishes multiple enterprises within the Cooperation Zone, their investor identity may be used to recognize no more than two foreign-invested science and technology enterprises from Portuguese-speaking countries for the purpose of applying for subsidies and rewards stipulated under these Measures.
Chapter II
Preferential Tax Treatment
Article 4.
Preferential Enterprise Income Tax
Enterprises that meet the requirements stipulated in the Notice by the Ministry of Finance and the State Taxation Administration on Preferential Enterprise Income Tax Policies for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (No. 19/2022 of the State Taxation Administration) shall be eligible for the following preferential enterprise income tax policies:
1. Eligible industrial enterprises in the Cooperation Zone shall be subject to a reduced enterprise income tax rate of 15%;
2. Enterprises engaged in tourism, modern services, and high-tech industries that are established in the Cooperation Zone shall be exempt from enterprise income tax on income derived from new foreign direct investments;
3. Enterprises established in the Cooperation Zone that acquire (including self-built or self-developed) fixed assets or intangible assets with a unit value of no more than RMB 5 million may fully expense such assets in the current period and deduct them when calculating taxable income, without the need for depreciation or amortization over multiple years. For newly acquired (including self-built or self-developed) fixed assets or intangible assets with a unit value exceeding RMB 5 million, enterprises may shorten the depreciation or amortization period or adopt accelerated depreciation or amortization methods.
Article 5.
Preferential Individual Income Tax
For talents introduced by enterprises or institutions who meet the requirements stipulated in the Notice by the Ministry of Finance and the State Taxation Administration on Preferential Individual Income Tax Policy for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (No. 3/2022 of the State Taxation Administration) and the Notice of the Secretariat of the Management Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin on Issuing the Interim Measures for the List-Based Administration of High-End and Sought-After Talents Eligible for Preferential Individual Income Tax Policies in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, any portion of individual income tax exceeding a 15% rate shall be exempt from taxation.
The exempted portion shall be subject to a cap, which will be determined by the Executive Committee of the Cooperation Zone in accordance with relevant requirements and actual needs.
Chapter III
Support for the Development of Foreign-invested Science and Technology Enterprises from Portuguese-speaking Countries
Article 6.
Settlement Rewards
Science and technology enterprises or teams that have won awards in innovation and entrepreneurship competitions organized by national ministries, Guangdong provincial departments, or relevant departments of the Macao SAR Government, and are recognized as foreign-invested science and technology enterprises from Portuguese-speaking countries by meeting all the requirements specified in Article 3 of these Measures, shall be eligible for a settlement reward equal to 100% of the competition award amount, up to a maximum of RMB 1 million.
If the same enterprise or team wins awards at multiple levels, the settlement reward shall be based on the highest award amount received.
The application for settlement rewards shall not be subject to any restrictions based on the commercial registration time of the applicant.
Article 7.
Requirements for Applying for Settlement Rewards
To apply for settlement rewards, the applicant shall meet the following requirements:
1. The award-winning enterprise or team shall apply for the settlement reward within two years from the date of receiving the competition award;
2. If the competition award is granted to an enterprise that is located outside the Cooperation Zone, the enterprise shall either relocate entirely to the Cooperation Zone or establish a holding subsidiary in the Cooperation Zone and apply for the settlement reward in the name of that subsidiary as a Cooperation Zone enterprise;
3. If the competition award is granted to a team, the team shall establish a new company in the Cooperation Zone as an independent legal entity, with the team members serving as the controlling shareholders of this company. The settlement rewards shall be applied for in the name of the newly established Cooperation Zone enterprise; and
4. The competition project shall be one of the main business projects of the Cooperation Zone enterprise applying for the settlement reward. The intellectual property rights of the competition project shall belong to the applying Cooperation Zone enterprise.
Article 8.
Investment Rewards
Foreign-invested science and technology enterprises from Portuguese-speaking countries shall be eligible for a one-time reward equal to 5% of their actual paid capital contribution in monetary form during the validity period of these Measures, up to a maximum of RMB 1 million (the paid capital contribution shall be verified by a qualified third-party institution); and each enterprise may apply for this reward only once.
For foreign-invested science and technology enterprises from Portuguese-speaking countries that have established affiliated companies in Macao, the reward ratio shall be increased to 10%.
Article 9.
Employment Subsidies
Foreign-invested science and technology enterprises from Portuguese-speaking countries that hire employees, sign labor contracts for a term of more than one year, and pay social insurance premiums in accordance with regulations shall be eligible for employment subsidies.
Employment subsidies may be applied for once a year and shall be granted based on the minimum social insurance premium standard in Zhuhai for the employer’s share and the actual number of employees for whom the enterprise has made monthly contributions. The subsidy term shall not exceed 18 consecutive months.
For foreign-invested science and technology enterprises from Portuguese-speaking countries that have established affiliated companies in Macao, the subsidy term shall be extended to no more than 24 consecutive months.
Article 10.
Office Space Support
Foreign-invested science and technology enterprises and teams from Portuguese-speaking countries that are settled in the Center for Science and Technology Exchange and Cooperation between China and Portuguese-speaking Countries shall be exempt from office space rental fees.
The office space allocated to a single enterprise or team shall not exceed 100 square meters and shall not exceed 15 square meters per actual employee. The duration of stay shall not exceed 12 consecutive months.
For foreign-invested science and technology enterprises from Portuguese-speaking countries that have established affiliated companies in Macao, the duration of stay shall be extended to no more than 18 consecutive months.
Article 11.
R&D Expense Subsidies
Foreign-invested science and technology enterprises from Portuguese-speaking countries that conduct substantive R&D activities in the Cooperation Zone and incur annual R&D expenses exceeding RMB 500,000 shall be eligible for an annual subsidy equal to 10% of their total annual R&D expenses, up to RMB 5 million.
The total annual R&D expenses shall be determined based on the smaller amount between the R&D expenses eligible for additional tax deductions as declared by the enterprise to the tax authorities and the R&D expenses eligible for additional tax deductions listed in the special audit report or attestation report.
Article 12.
Development and Growth Rewards
Foreign-invested technology enterprises from Portuguese-speaking countries that are evaluated as small and medium-sized technological enterprises and possess a valid registration code shall be eligible for a one-time reward of RMB 30,000. Each enterprise may apply for the reward only once.
For foreign-invested science and technology enterprises from Portuguese-speaking countries newly included in the Cooperation Zone’s statistical database of enterprises above a designated size after the implementation of these Measures, a one-time reward of RMB 600,000 shall be granted in the year of inclusion. If the year-on-year growth rate of operating income reaches 50% or more in the following year, a reward of RMB 300,000 shall be granted. If the year-on-year growth rate of operating income reaches 50% or more in the third year, an additional reward of RMB 300,000 shall be granted. The cumulative reward for the same enterprise shall not exceed RMB 1.2 million.
For foreign-invested science and technology enterprises from Portuguese-speaking countries that were already included in the Cooperation Zone’s statistical database of enterprises above a designated size before the implementation of these Measures, if the year-on-year growth rate of operating income in the following year and the third year meets the requirements specified in the preceding paragraph, these enterprises may apply for rewards in accordance with the preceding paragraph.
Chapter IV
Support for Exchanges and Cooperation
Article 13.
Technology Transaction Rewards
Legal persons or other organizations in the Cooperation Zone that engage in technology development, technology transfer, technology licensing, technology consulting, or technology services with universities, research institutions, or enterprises in Portuguese-speaking countries may, upon certification and registration by the Economic Development Bureau of the Cooperation Zone, shall be eligible to receive an annual reward equal to 5% of their annual technology transaction value, up to RMB 500,000.
The annual technology transaction value shall be determined based on the smallest amount among the technology transaction value verified by the technology contract registration office in the Cooperation Zone, the corresponding tax invoice amount, and the bank transfer receipt. The date of the technology transaction shall be determined based on the date shown on the bank transfer receipt.
Technology transactions between enterprises with equity affiliations shall not be eligible for rewards.
Contracts and task assignments issued under national, Guangdong provincial, or Cooperation Zone science and technology plans, upon recognition and registration, shall not be eligible for rewards under this article.
Article 14.
Exchange Activity Subsidies
Legal persons and other organizations in the Cooperation Zone shall be encouraged to host activities that promote scientific and technological exchange and cooperation with Portuguese-speaking countries. These activities may include, but are not limited to, entrepreneurship mentoring, investment and financing matchmaking, business exchanges, and market expansion initiatives. Eligible activities may receive a subsidy equal to 50% of the actual audited expenses incurred, up to RMB 200,000 per event.
Each applicant may apply for subsidies for a maximum of three exchange activities per year.
For innovation entities, such as colleges and universities, research institutions, incubators, and technology enterprises legally established in Portuguese-speaking countries, the round-trip international and domestic travel expenses and accommodation costs of their employees may be included in the subsidy. However, this shall be limited to one person per entity, and only economy-class flights shall be eligible.
Article 15.
Requirements for Applying for Exchange Activity Subsidies
To apply for exchange activity subsidies, applicants shall meet both of the following conditions:
1. The activity shall be registered with the Economic Development Bureau of the Cooperation Zone at least 30 days prior to its commencement; and
2. The activity shall have a minimum of 15 participants, with at least 50% of participants coming from colleges and universities, research institutions, incubators, or technology enterprises (including foreign-invested science and technology enterprises from Portuguese-speaking countries already established in the Cooperation Zone), and each participating entity can only send up to three participants (if more than three are sent, only three shall be counted).
Chapter V
Support for Platform Development
Article 16.
Incubation Carrier Operation Rewards
Domestic and international institutions are encouraged to establish and operate incubation carriers in the Cooperation Zone, with a focus on attracting and supporting foreign-invested technology enterprises and startup teams from Portuguese-speaking countries.
Eligible incubation carrier operators may receive an annual reward of up to RMB 3 million, based on the following criteria:
1. If the foreign-invested technology enterprises introduced and supported by the incubation carrier receive rewards under Articles 6, 8, or 12 of these Measures, the incubation carrier operator may receive a reward equal to 10% of the reward amount granted to the enterprises;
2. If the incubated enterprises meet any one of the following conditions, the incubation carrier operator may receive RMB 100,000 per eligible enterprise:
(1) Newly recognized as a “little giant” enterprise that use special and sophisticated technologies to produce novel and unique products during the validity period of these Measures;
(2) Newly included in the Cooperation Zone’s statistical database of enterprises above a designated size as a national high-tech enterprise or a small and medium-sized enterprises (SME) that use special and sophisticated technologies to produce novel and unique products during the validity period of these Measures;
(3) Recognized by the Cooperation Zone as a unicorn, future unicorn, or seed-stage unicorn enterprise; and
(4) Raised at least RMB 20 million in new equity financing in the past two years (based on actual paid-in capital from qualified institutional investors).
3. If an incubated enterprise qualifies for both rewards under the preceding criteria 1 and 2, the incubator operator may apply for both rewards cumulatively. However, each enterprise may only be used for one incubator’s reward application.
Article 17.
Requirements for Applying for Incubation Carrier Operation Rewards
To apply for incubation carrier operation rewards, the operator shall meet all of the following requirements:
1. The operator shall be an independent legal person registered in the Cooperation Zone, with a well-established operational management system and a comprehensive incubation service mechanism;
2. The incubation carrier facility shall be centrally located and have a minimum area of 300 square meters;
3. At least 50% of the enterprises housed in the incubation carrier shall be foreign-invested science and technology enterprises from Portuguese-speaking countries; and
4. Enterprises used to apply for operation rewards shall conduct substantive operations in the Cooperation Zone, with their primary R&D and office spaces located within the incubation carrier.
Article 18.
Rewards for Recognition of Technology Transfer Talent Training Bases
Legal entities and other organizations within the Cooperation Zone shall be encouraged to leverage high-quality resources from domestic and international technology transfer institutions and industry organizations to conduct technology transfer talent training. The goal shall be to identify and develop a pool of highly skilled, multidisciplinary professionals who understand policies, possess technical expertise, excel in management, are knowledgeable in finance and law, have a strong grasp of market dynamics, and specialize in technology commercialization. This initiative aims to enhance the international service capabilities of technology transfer within the Cooperation Zone.
A one-time reward of RMB 1 million may be granted to national technology transfer talent training bases approved by the Cooperation Zone.
Article 19.
Operation Subsidies for Technology Transfer Talent Training Bases
For national technology transfer talent training bases approved by the Cooperation Zone that conduct training for technology brokers and offer specialized training courses on the laws, regulations, policies, and innovation resources of Portuguese-speaking countries, a subsidy of up to 50% of the actual audited expenses for the training activities may be granted. The subsidy for a single training activity shall not exceed RMB 500,000, and the annual subsidy for the same base shall not exceed RMB 1 million.
Article 20.
Talent Introduction Subsidies for Technology Transfer Talent Training Bases
For primary and intermediate technology brokers, senior technology managers, and Registered Technology Transfer Professionals (RTTP) who have been assessed and certified by national technology transfer talent training bases approved within the Cooperation Zone, and who have continuously engaged in technology transfer work within the Cooperation Zone for one year after obtaining certification, a reward of RMB 10,000 per person may be granted to the training base.
Chapter VI
Supplementary Provisions
Article 21.
Applicable Principles
Except as otherwise provided by laws and regulations, application for and receipt of benefits under these Measures shall not affect an applicant’s eligibility for other policy support and preferential treatment from the national or Guangdong provincial governments, except for those borne or matched by the Cooperation Zone’s finances.
In cases where these Measures overlap or conflict with other policies issued by the Cooperation Zone or with requirements from higher authorities that involve financial obligations or supporting funds from the Cooperation Zone, except as otherwise specified by other regulations, applicants may choose the most favorable option under the principle of “prioritizing the higher standard without duplication”.
Article 22.
Supervision of Funds
Applicants shall ensure the completeness, authenticity, accuracy, and legality of their application materials and shall bear the relevant legal responsibilities for the submitted project application materials. If an applicant provides false materials or fraudulently obtains support funds, the applicant shall return all support funds and pay interest at the current Loan Prime Rate (LPR).
Cases involving suspected criminal activity shall be referred to the appropriate legal authorities in accordance with the law. If an applicant is subject to criminal penalties or administrative penalties such as fines, confiscation of illegal gains, confiscation of illegal property, restrictions on production and business activities, orders to suspend production or business, or orders to close down due to violations of national laws and regulations, the applicant shall be prohibited from applying for relevant subsidies.
Where an applicant relocates out of the Cooperation Zone, cancels its registration, or alters its tax payment or statistical reporting obligations in the Cooperation Zone within five years of receiving the final installment of support funds or subsidies under these Measures, the applicant shall return all received funds in a lump sum, together with interest calculated at the prevailing Loan Prime Rate (LPR).
Article 23.
Implementation
The rewards and subsidies covered by these Measures will be applied for centrally and disbursed annually by the Economic Development Bureau of the Cooperation Zone in accordance with the following procedures:
1.Notification Release: The Economic Development Bureau of the Cooperation Zone will publish the application notice on the official website of the Cooperation Zone. Applicants shall submit their applications on time; failure to apply within the deadline shall be deemed a waiver of the application;
2. Application and Acceptance: Eligible applicants shall submit their applications and relevant materials to the Economic Development Bureau of the Cooperation Zone in accordance with the application notice. If the application materials are complete, the application shall be accepted. If the materials are incomplete, the applicant shall be notified once of all required corrections within a specified time. If the corrections are completed within the specified time, the application shall be accepted; otherwise, the application shall be deemed withdrawn;
3. Review and Publicity: The Economic Development Bureau of the Cooperation Zone will review the accepted applications and publicize the review results on the official website of the Cooperation Zone for seven working days; and
4. Disbursement of Rewards and Subsidies: If no objections are raised during the publicity period, or if the objections are found to be invalid after investigation, the Economic Development Bureau of the Cooperation Zone will disburse the rewards and subsidies based on the review results.
Article 24.
Right of Interpretation
The Economic Development Bureau of the Cooperation Zone reserves the right to interpret these Measures.
Article 25.
Effective Date and Validity Period
These Measures shall come into force on May 01, 2024, and remain in force until December 31, 2026.