This English translation is for reference only. The Chinese version shall prevail in case of any inconsistencies
Notice on Issuing the Measures for Supporting R&D and Transformation of Achievements in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
All relevant departments,
The Measures for Supporting R&D and Transformation of Achievements in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin has been approved by the Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, and is 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 7, 2024
Normative Document No. 9/2024 of the Economic Development Bureau of the Executive Committee
Measures for Supporting R&D and Transformation of Achievements in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
Article 1.
Purpose of the Measures
These Measures are hereby formulated to enhance the level of technological innovation in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the “Cooperation Zone”), promote the transfer and transformation of scientific and technological achievements, and effectively implement the Measures for Promoting Scientific and Technological Innovation in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.
Article 2.
Definitions
For the purposes of these Measures, the following definitions apply:
1. “Macao-funded enterprises” refer to enterprises where the investors are Macao residents or legal entities legally established in Macao that have been operating for at least two years, with a combined shareholding ratio of no less than 25%. The shareholding methods of the Macao residents and Macao legal entities include direct shareholding and indirect shareholding, but exclude nominee shareholding;
2. All monetary amounts in these Measures are denominated in Renminbi (RMB).
Article 3.
Eligible Entities
These Measures apply to companies or institutions that are registered, subject to tax administration, and statistical reporting in the Cooperation Zone. Eligible enterprises or institutions shall also possess independent legal person status, equipped with standard financial management systems, and be engaged in substantive operations within the Cooperation Zone.
The determination of substantive operations shall follow relevant provisions of the Rules for Determining Substantive Operations of Enterprises in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (Normative Document No. 2/2023 of the Executive Committee).
Article 4.
Industry-Academia-Research Collaborative Projects in Hengqin and Macao
The industry-academia-research collaborative projects in Hengqin and Macao will be collaboratively implemented by the Economic Development Bureau of the Cooperation Zone and the Macao Science and Technology Development Fund.
Projects that are collaboratively selected by the Economic Development Bureau of the Cooperation Zone and the Macao Science and Technology Development Fund and that re approved by the Macao Science and Technology Development Fund may be provided with a collaborative grant.
The Economic Development Bureau of the Cooperation Zone will provide matching grants, up to RMB 5 million, to enterprises in the Cooperation Zone that propose technical needs, in an amount equal to the funding granted by the Macao Science and Technology Development Fund.
The grants under these Measures shall be disbursed in accordance with the progress of allocations by the Macao Science and Technology Development Fund.
The exchange rate between the Macao Pataca (MOP) and Renminbi (RMB) shall be based on the CNY Central Parity Rate issued by the China Foreign Exchange Trade System on the date when the grants are disbursed by the Macao SAR Government.
Article 5.
Implementation Process for Industry-Academia-Research Collaborative Projects in Hengqin and Macao
The implementation process for industry-academia-research collaborative projects in Hengqin and Macao shall be as follows:
1. Collection of Technical Challenges: The Economic Development Bureau of the Cooperation Zone will solicits technical challenges that need to be addressed from enterprises in the Cooperation Zone and forwards the information to the Macao Science and Technology Development Fund;
2. Collection of Solutions: The Macao Science and Technology Development Fund will evaluate the submitted technical challenges, determine the key technology research projects, and announce the projects to universities and research institutions in Macao to solicit solutions;
3. Project Application: Universities and research institutions in Macao that intend to undertake the projects shall submit applications to the Macao Science and Technology Development Fund; and
4. Evaluation and Project Approval: The Macao Science and Technology Development Fund will conduct evaluations, determine the projects to be approved, and decide on the grant amounts.
Article 6.
Matching Grant for National or Guangdong Provincial Science and Technology Projects
Enterprises or institutions in the Cooperation Zone that lead or participate in technology innovation or achievement transformation projects approved by the Ministry of Science and Technology, the Department of Science and Technology of Guangdong Province, the National Development and Reform Commission, the Guangdong Provincial Development and Reform Commission, or other relevant commissions, ministries, and departments (hereinafter referred to as the “approving authorities”) may be eligible for matching grant. The requirements are as follows:
1. Where the approving authorities’ official documents explicitly require matching grant, and the project contract’s budge proposal includes a requirement for local financial support, grants shall be provided accordingly, without any upper limit on the grant amount or percentage;
2. Where the approving authorities’ official documents do not explicitly require matching grant, and the applicant entity has self-raised funds (as specified in the project contract), matching grant shall be provided as follows: leading entities may receive matching grants equal to 100% of the amount provided by the approving authorities, and participating entities may receive matching grants equal to 50% of the amount provided by the approving authorities. The total matching grant to the same entity for a single project shall not exceed RMB 10 million, and shall not exceed 50% of the self-raised funds of the entity (as specified in the project contract);
3. For science and technology projects independently undertaken by the applicant entity, matching grant shall be calculated based on the amount provided by the approving authorities. For science and technology projects undertaken jointly by multiple entities, where the project contract explicitly specifies the allocation of fund from the approving authorities to each participating entity, the matching grant shall be based on the actual amount received by the applicant entity. Where the project contract does not specify such allocation by the approving authorities, no matching grant shall be provided; and
4. Matching grants shall be disbursed in accordance with the the disburesement schedule of the funding provided by the approving authorities. In case where a project that has received matching grants under this Article is required to return the funding to the approving authorities, the grant recipient shall, within one month from the date of such return, report the circumstances to the Economic Development Bureau of the Cooperation Zone and refund the corresponding matching grants to the designated account of the Bureau.
Article 7.
Matching Grants for Macao Science and Technology Projects
Enterprises or institutions in the Cooperation Zone participate or undertake technology innovation and transformation projects approved by the Macao Science and Technology Development Fund may receive matching grants. The matching grants to the same entity for a single project shall not exceed 50% of the grants provided by the Macao Science and Technology Development Fund and shall not exceed RMB 8 million. The specific grant requirements are as follows:
1. If the participating entity in the Cooperation Zone is an enterprise, a matching grant equal to 50% of the self-raised funds of the enterprise (the amount listed in the project contract) may be provided;
2. If the participating entity in the Cooperation Zone is a research institution, a matching grant equal to 100% of the expenses required for the projects undertaken by the research institution (the amount listed in the project contract) may be provided; and
3. The matching grants shall be disbursed in accordance with the disbursement schedule of the funding provided by the Macao Science and Technology Development Fund.
The exchange rate between the Macao Pataca (MOP) and Renminbi (RMB) shall be based on the CNY Central Parity Rate issued by the China Foreign Exchange Trade System on the date when the grants are disbursed by the Macao SAR Government.
Article 8.
Subsidies for Enterprise R&D Expenses
A maximum annual subsidy of RMB 5 million may be granted to a single enterprise in the Cooperation Zone based on its total annual R&D expenses. The subsidy standards are as follows:
1. Enterprises included in the Cooperation Zone’s statistical database of enterprises above a designated size or Macao-funded enterprises:
Total annual R&D expenses × 10%;
2. Other enterprises:
Total annual R&D expenses×5%; and
3. The total annual subsidies for enterprise R&D expenses shall be subject to a total annual cap, with the maximum amount set at RMB 100 million. Where the total proposed subsidy amount exceeds RMB 100 million, the final subsidy amount for each enterprise shall be calculated as: Proposed subsidy amount × (RMB 100 million / Total proposed subsidy amount).
The total annual R&D expenses of an enterprise 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 9.
Application Requirements for Enterprise R&D Expense Subsidies
Enterprises applying for R&D expense subsidies shall meet the following conditions:
1. The enterprise’s R&D projects shall comply with the National Key Supported High-Tech Fields, and the scope of collection and calculation ratio of R&D expenses shall be implemented in accordance with the Notice by the Ministry of Finance, the State Taxation Administration and the Ministry of Science and Technology on Improving Policies for the Weighted Pre-tax Deduction of Research and Development Expenses (No. 119 [2015] of the Ministry of Finance and the State Taxation Administration), the Announcement of the State Taxation Administration on Issues Concerning the Scope of Aggregation for the Weighted Pre-tax Deduction of Research and Development Expenses (No. 40 [2017] of the State Taxation Administration). In the event of national adjustments to R&D activity definitions or expense aggregation scope pertaining to weighted pre-tax deduction, the prevailing regulations shall apply; and
2. The total annual R&D expenses eligible for weighted pre-tax deduction, as declared to the tax authorities, shall be no less than RMB 500,000.
Article 10.
Applicable Principles for Enterprise R&D Expense Subsidies
Enterprises that have already applied for R&D subsidies under special industry policies, such as those for integrated circuits, biomedicine, and healthcare, shall not be eligible to apply for enterprise R&D expense subsidies for the same expenses.
Except for the cases specified in the preceding paragraph, enterprises may, unless otherwise stipulated, concurrently enjoy R&D expense subsidies along with other inclusive policies, such as grants for the Hengqin International Innovation and Entrepreneurship Competition, grants for core and key industrial technology research projects, and matching grants for science and technology projects.
Article 11.
Support for Application Scenarios of Cutting-edge Technologies
Enterprises or institutions in the Cooperation Zone that focus on cutting-edge technology fields in the technical solution design or commercial exploration stage may be supported to build innovation experience centers and context labs, conduct experience demonstrations and testing verifications of new products and solutions utilizing cutting-edge technologies. Following evaluation, projects with advanced and demonstrative application scenarios may receive a subsidy equal to 30% of the total project investment, with a maximum subsidy of RMB 5 million.
Total project investments shall include venue rental fees, renovation and decoration costs, and purchase costs of instruments and equipment (including software). The figures shall be verified through third-party audit reports.
Article 12.
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 13.
Supervision of Funds
Applicants shall ensure the completeness, authenticity, accuracy, and legality of their application materials, and shall bear legal liability for the submitted materials. Applicants who provide false materials or fraudulently obtain support funds shall be subject to strict investigation and penalties in accordance with relevant regulations. In cases of serious violations, the applicants shall be held liable in accordance with the law.
Where an applicant is subject to criminal penalties or administrative penalties such as fines, confiscation of illegal proceeds, confiscation of illegal property, restrictions on production or business activities, orders to cease production or business, or orders to close down due to violations of national laws and regulations, the applicatn 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 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 14.
Right of Interpretation
These Measures shall be interpreted and implemented by the Economic Development Bureau of the Cooperation Zone.
Article 15.
Effective Date and Validity Period
These Measures shall come into effect on January 1, 2024 and remain in force until December 31, 2025.
Projects that have already received subsidies under the original Interim Measures for Supporting Science and Technology Plan Projects of Technology-Based Enterprises in Hengqin New Area (Revised) (No. 1 [2021] of the Office of the Hengqin New Area Administrative Committee) but have not yet received the full subsidies, may continue to be funded under the original measures.