The “Reward Measures for Economic Contributions of High-tech Enterprises in Hunan Province” was announced at the Hunan Provincial People’s Government fourth plenary meeting on July 13, 2019. It defined the reward mechanism, saying that qualified high-tech enterprises in Hunan Province will receive rewards of at least 1 million CNY from the government.
The “Measures” stipulated that high-tech enterprises which contributed greatly to the Hunan economy will be rewarded if they meet the following four requirements. Those that are:
-Registered in Hunan Province, with an independent legal personality, sound financial management institutions and financial management systems, integrity management, and pay taxes according to the law;
-Certified as high-tech enterprises by the Hunan Provincial Science and Technology Department, the Hunan Provincial Department of Finance, and the Hunan Provincial Tax Service, State Taxation Administration in the year;
-Established for more than five years with tax credit ratings for the past five years at or above Grade B; for those less than five years, tax credit ratings should be above Grade B or above since its establishment; and,
- Established for more than five years, with no or only minor violations of law and trust over the past five years; for those less than five years, no record of serious violations of law or trust since establishment.
“Measures” clarified that incentive funds can be allocated by the enterprises themselves. They may be used to increase R&D investment, set up R&D institutions, strengthen intellectual property protections, establish science and technology innovation talent reward funds, introduce scientific and technological innovation talents, or award teams or individuals that make outstanding contributions to enterprise development. The “Measures” shall be implemented by the Hunan Provincial Department of Science and Technology and the Hunan Provincial Department of Finance. The implementation period shall be from 2019 to 2021.
Under “Measures”, the Hunan Provincial Department of Finance decided to award five enterprises that have made great contributions to Hunan's economic development in the past five years. They were: the Hunan Valin Xiangtan Iron and Steel Co. Ltd., the Hunan Valin Lianyuan Iron and Steel Co. Ltd., the Lens Technology (Changsha) Co., Ltd., the Zoomlion (Changsha) Environmental Industry Co., Ltd., and the China Railway Construction Heavy Industry Co., Ltd. Each received 1 million CNY.