This English translation is for reference only. The Chinese version shall prevail in case of any inconsistencies.
Notice on Issuing the Implementation Measures for Building a High-Quality Environment for Scientific and Technological Innovation in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
All relevant departments,
The Implementation Measures for Building a High-Quality Environment for Scientific and Technological Innovation in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the “Measures”) have been approved by the Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin 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 7, 2024
Normative Document No. 11/2024 of the Economic Development Bureau of the Executive Committee
Implementation Measures for Building a High-Quality Environment for Scientific and Technological Innovation in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
Contents
Chapter I General Provisions
Chapter II Establishment of Low-Cost Spaces for Scientific and Technological Innovation
Chapter III Enhancement of Financial Support for Science and Technology
Chapter IV Enhancement of Intellectual Property Protection and Operation
Chapter V Supplementary Provisions
Chapter I
General Provisions
Article 1.
Purpose of the Measures
These Measures are formulated to effectively implement the Measures for Promoting Scientific and Technological Innovation and Development in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and to further create a high-quality environment for scientific and technological innovation and entrepreneurship.
Article 2.
Definition
For the purposes of these Measures, the following terms are defined as follows:
1. “Qualified institutional investors” refer to venture capital funds and private equity investment funds that have completed recordation procedures and operate in compliance with the Interim Measures for the Administration of Startup Investment Enterprises (Order 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 the China Securities Regulatory Commission);
2. “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 Macao residents and Macao legal entities include direct shareholding and indirect shareholding, but exclude nominee shareholding;
3. “Affiliated companies in Macao” refer to companies that are legally established in Macao, duly paying taxes (including but not limited to complementary tax and business tax) or lawfully exempt from taxation, and that either: (i) are directly held (excluding nominee shareholdings) by enterprises in the Cooperation Zone with more than 50% of the shares , or (ii) directly hold (excluding nominee shareholdings) more than 50% of the shares in an enterprise in the Cooperation Zone. Such companies must also engage in the same or similar business activities as the said enterprise in the Cooperation Zone;
4. “Office premises” refer to office spaces within the Cooperation Zone where the designated use is for office purposes (including cultural creativity, scientific and educational research and development, and high-tech), and for which a real estate rights certificate (including a certificate of ownership or a real estate title certificate) has been obtained;
5. The term “and above” or “more than” shall be interpreted as inclusive of the stated value.
Article 3.
Applicable Entities
These Measures apply to companies or institutions that are registered, subject to tax administration and statistical reporting in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as 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 the Substantive Operations of Enterprises in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (Normative Document No. 2/2023 of the Executive Committee).
Chapter II
Establishment of Low-Cost Spaces for Scientific and Technological Innovation
Article 4.
Recognition of Office Buildings
To be eligible for the recognition as office buildings, an applicant shall concurrently meet the following conditions:
1. The office building subject to recognition shall be a carrier space located within the Cooperation Zone and must have obtained a real estate rights certificate (including a certificate of ownership or a real estate title certificate);
2. The applicant shall be the owner entity of the office building or its entrusted management entity;
3. The office building subject to recognition shall have relatively concentrated space, with a construction area of no less than 3,000 square meters; a comprehensive management system and property service system; and the capability to provide supporting services to ensure the normal business operations of the resident enterprises and institutions.
Applicant entities shall undertake that, after the office building’s recognition is approved, they will regularly submit reports on enterprise occupancy, on-site office operations, and other relevant information as required by the Economic Development Bureau of the Cooperation Zone.
Article 5.
Office Space Rental Subsidies
Enterprises or institutions that move into office buildings recognized by the Economic Development Bureau of the Cooperation Zone may be granted rental subsidies with reference to the assessed value issued by relevant agencies of the Executive Committee or their authorized third-party institutions. The specific provisions are as follows:
1. Subsidy Application:
Applications shall be submitted on a semi-annual basis in accordance with the principle of “payment prior to subsidy disbursement”.
2. Subsidized Area:
(1) Excluding manufacturing and laboratory spaces, the subsidized area for all other spaces shall be 15 square meters per person, calculated based on the number of individuals who have signed employment contracts with the enterprise or institution, pay individual income tax or social insurance in the Cooperation Zone, and work on-site. The subsidized area for each enterprise or institution shall not exceed 2,000 square meters.
(2) For enterprises or institutions whose primary business revenue in the preceding year reached RMB 200 million or more and demonstrating positive year-on-year growth, and whose primary business revenue per unit area reached RMB 100,000 per square meter, the total subsidized area may be increased to 5,000 square meters.
(3) “Primary business revenue” shall be based on the data in the audit report issued by a third-party institution. “Primary business revenue per unit area” is calculated as the enterprise’s or institution’s primary business revenue in the preceding year divided by the total subsidized area applied for in the current year.
(4) “The number of individuals who have signed employment contracts with the enterprise or institution, pay individual income tax or social insurance in the Cooperation Zone, and work on-site” shall be determined based on the number of employees in June (for the first half-year rental subsidy) and December (for the second half-year rental subsidy) of the current year.
3. Subsidy Period:
The maximum continuous subsidy period shall be sixty months. For key enterprises or institutions that expand their space by 500 square meters or more in a single instance, the original space shall continue to receive rental subsidies for the remaining eligible period, while the newly added space shall be eligible for rental subsidies for a maximum continuous period of sixty months.
4. Subsidy Standards:
(1) For general enterprises or institutions, the rental subsidy for the first 36 months shall not exceed 60% of the assessed value (up to a maximum of RMB 60 per square meter per month, and not exceeding the actual rent paid); for the subsequent 24 months, the rental subsidy shall not exceed 30% of the assessed value (up to a maximum of RMB 30 per square meter per month, and not exceeding the actual rent paid);
(2) For key enterprises or institutions, the rental subsidy for the first 36 months shall not exceed 80% of the assessed value (up to a maximum of RMB 80 per square meter per month, and not exceeding the actual rent paid). For the subsequent 24 months, the rental subsidy shall not exceed 40% of the assessed value (up to a maximum of RMB 40 per square meter per month, and not exceeding the actual rent paid).
5. An entity recognized as a key enterprise or institution shall meet any of the following criteria:
(1) The entity has received within the past three years a provincial-level science and technology award (ranked among top three recipients) or a national-level science and technology award (ranked among top five recipients);
(2) The entity has, within the past three years, either led or participated in (must have led at least one sub-project) scientific and technological projects under the programs of national, Guangdong provincial, or Cooperation Zone authorities;
(3) The entity has obtained equity financing of RMB 10 million or more (paid-in capital from qualified institutional investors) within the past two years;
(4) The entity has won awards in innovation and entrepreneurship competitions organized by science and technology or industry authorities at national, Guangdong provincial, or Zhuhai municipal level within the past two years;
(5) The entity has advanced to the finals of the Hengqin International Scientific and Technological Innovation and Entrepreneurship Competition;
(6) The entity is included in the Cooperation Zone’s statistical database of enterprises above a designated size;
(7) The entity has obtained project approval for high-end talent innovation and entrepreneurship team in the Cooperation Zone;
(8) The entity has been approved or recognized as an innovation platform by national, Guangdong provincial, Cooperation Zone, or Zhuhai municipal authorities;
(9) The entity is a science and technology industry organization established within the Cooperation Zone.
Article 6.
Requirements for Office Space Rental Subsidies
To be eligible for office space rental subsidies, an applicant shall concurrently meet the following conditions:
1. The applicant shall fall within one of the following categories of enterprises, institutions, platforms, or organizations:
(1) Enterprises or institutions primarily engaged in the research, development, and commercialization of high-tech products and services. Enterprises that have been established for 18 months or more, with a total workforce not exceeding 500 persons, annual sales revenue not exceeding RMB 200 million, and total assets not exceeding RMB 200 million shall have passed the evaluation for science and technology-oriented small and medium-sized enterprises either in the year of application or in the preceding year.
(2) Innovation platforms include industrial technology research and development platforms that conduct research on common key technologies, demonstrate applications of new technologies, and facilitate the transfer and transformation of scientific and technological achievements, as well as scientific and technological public service platforms that provide specialized services such as testing and inspection, pilot-scale incubation, research and design, and resource sharing.
(3) Science and technology industry organizations established within the Cooperation Zone.
2. The applicant shall be established in an office building recognized by the Economic Development Bureau of the Cooperation Zone and lease office space of no less than 30 square meters;
3. The leased office space shall be either directly leased from the property owner or leased through an agent authorized by the property owner;
4. The applicant shall not have previously obtained the right to use state-owned construction land within the Cooperation Zone;
5. Enterprises or institutions newly established in the current year, when applying for rental subsidies for the first half of the year, shall commit to meeting the substantive operation conditions in the said year.
Article 7.
Subsidies for Office Premise Acquisition
Technology enterprises that purchase office premises within the Cooperation Zone for their own use (excluding ancillary facilities and supporting premises) shall be eligible for a subsidy equal to 20% of the purchase price. The maximum cumulative subsidy amount for each enterprise shall not exceed RMB 20 million.
Enterprises applying for office premise acquisition subsidies shall undertake that the purchased office space will be used exclusively for their own operations, shall not remain vacant, and shall not be repurposed, transferred, or leased to third parties within ten years after obtaining the property ownership certificate.
Chapter III
Enhancement of Financial Support for Science and Technology
Article 8.
Equity Investment Matching Incentives
Technology enterprises in the Cooperation Zone that receive investments from qualified institutional investors shall be granted an incentive equal to 5% of the investment amount received, with a maximum annual incentive of RMB 500,000 per enterprise.
When applying for the incentive of this article, the enterprise shall have actually received the investment funds, completed the changes to the enterprise’s registered capital with the commercial registration authorities, and shall not have withdrawn the equity investment funds.
Chapter IV
Enhancement of Intellectual Property Protection and Operation
Article 9.
Patent Grant Incentives
Enterprises or institutions in the Cooperation Zone that have received domestic or foreign invention patent grants are eligible for a one-time incentive equal to 50% of the official fees paid, up to a maximum of RMB 20,000 per invention patent. For the same invention granted patent rights in two or more countries or intergovernmental organizations, incentives shall be granted for no more than two such grants. The total patent grant incentive amount for any single entity shall not exceed RMB 3 million in any given year.
Enterprises or institutions applying for patent grant incentives shall be listed as the first patent owner on the patent certificate. If the patent rights are transferred within the Cooperation Zone prior to the application deadline for patent grant incentives, only the patent transferee shall be eligible for the incentive. When the address on the patent certificate differs from that on the business license, the address registered on the business license shall prevail.
Article 10.
Patent Award Incentives
Enterprises or institutions in the Cooperation Zone that are awarded a Gold, Silver, or Excellence Award in the China Patent Awards may receive a one-time award of RMB 2 million, RMB 500,000, or RMB 300,000, respectively; Enterprises or institutions that are awarded a Gold, Silver, or Excellence Award in the Guangdong Patent Awards shall receive a one-time award of RMB 300,000, RMB 200,000, or RMB 100,000, respectively. If the same project qualifies for multiple award levels, the incentive shall be provided at the highest applicable level, with the difference being compensated accordingly.
Enterprises or institutions applying for patent award incentives shall be listed as the first patent owner on the patent certificate. If the patent rights are transferred within the Cooperation Zone prior to the application deadline for patent award incentives, only the patent transferee shall be eligible for the incentive. When the address on the patent certificate differs from that on the business license, the address registered on the business license shall prevail.
Article 11.
Trademark Incentives
Enterprises or institutions in the Cooperation Zone that obtain well-known trademark recognition from the China National Intellectual Property Administration may be granted a one-time incentive of RMB 800,000; enterprises or institutions in the Cooperation Zone whose trademarks are included in the “Key Trademark Protection Directory” of Guangdong Province for the first time may be granted a one-time incentive of RMB 40,000.
Enterprises or institutions applying for trademark incentives shall be listed as the first trademark owner on the trademark registration certificate. If the trademark rights are transferred within the Cooperation Zone prior to the application deadline for trademark incentives, only the trademark transferee shall be eligible for the incentive. When the address on the trademark owner’s registration certificate differs from that on the business license, the address registered on the business license shall prevail.
Article 12.
Matching Grants for National or Guangdong Provincial Intellectual Property Projects
For projects of enterprises or institutions in the Cooperation Zone that receive funding approved by national or Guangdong provincial intellectual property authorities, matching grants shall be provided equal to 100% of the approved funding, up to a maximum of RMB 5 million per project.
The matching funding shall be disbursed in a lump sum after the project has passed acceptance inspection.
Applicants shall apply for the matching grants for fiscal funds received from national and Guangdong provincial project (including funds received prior to the implementation of these Measures) within two years from the date the project passes the acceptance inspection.
Chapter V
Supplementary Provisions
Article 13.
Special Support
Enterprises meeting either of the following conditions shall be eligible to receive support under Articles 7, 8, 10, and 11 of these Measures at a rate of 120% of the established standards:
1. Macao-funded enterprises;
2. Affiliated companies in Macao that have obtained certification as key science and technology enterprises from the Macao SAR Government.
Article 14.
Principles of Application
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 15.
Supervision of Funds
Applicants shall ensure the completeness, authenticity, accuracy, and legality of the application materials, and bear liability for the submitted materials. Applicants who provide false materials or fraudulently obtain support funds shall be subject to strict investigation and punishment in accordance with relevant regulations. In cases of serious violations, the applicants shall be held liable 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 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 16.
Power of Interpretation
These Measures shall be interpreted and implemented by the Economic Development Bureau of the Cooperation Zone.
Article 17.
Effective Date and Validity Period
These Measures shall come into effect on January 1, 2023 and remain valid until December 31, 2025.
Office space rental subsidies for the period on or before June 30, 2023, shall be implemented in accordance with the revised Notice of the Hengqin New Area Administrative Committee Office on Issuing the Interim Measures on the Office Space Rental Subsidies for Technology-Oriented Enterprises in Hengqin New Area(No. 15 [2020] ), while office space rental subsidies for the period on or after July 1, 2023, shall be implemented in accordance with these Measures.
For projects involving continuous subsidies, where subsidies have already been applied for within the validity period of these Measures, the remaining subsidies may continue to be granted in accordance with the standards set forth in these Measures, even after the expiration of the validity period.