Funding Business
Dec 13
2009
2009
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Funding Business
China'S Guangdong Province Supports Foreign-Funded Businesses
The provincial government of Guangdong has implemented measures to help Hong Kong, Macau and Taiwanese-funded companies deal with the slowing global economy.
The latter combined comprise of sixty four percent of the 91,000 foreign-funded companies in the province. The support will include the following to name a few:
a.) The provincial government will make a special RMB1 billion fund available for upgrading trade companies particularly those involving research and development, upgrading technology, brand support, and energy-saving projects.
b.) A RMB2 billion yuan fund was help establish SMEs.
c.) An estimated 100 types of administrative fees will be abolished including road maintenance fees, waterway conservation fees, and other local charges.
d.) Tax cuts for businesses in China involved in importing technology along with exemptions from corporate income taxes and sales tax. Business falling under the category of high-tech will be granted a 15 percent discount on corporate taxes.
e.) China based businesses struggling to pay taxes can apply for an extension not exceeding 3 months.
f.) The government will allow businesses to reduce charges for employee social insurance.
g.) The process for relocation and restructuring will be simplified and companies will be able to retain their original Customs Classification category pending approval.
h.) The government will work towards streamlining procedures by allowing business to log online for processing and approval.
i.) Under the Closer Economic Partnership Arrangement (CEPA), Macau and Hong Kong businesses will be able to simplify the investment retail procedures.
Vice-Governor Wan Qingliang told People’s Daily that the province will use the policies to help Hong Kong, Macau and Taiwan-funded businesses. He said,"Guangdong’s industrial environment has many advantages and Hong Kong, Macao and Taiwan-funded firms should take advantage of the preferential policies."
About the Author
This article was written for the China business news magazine, China Briefing, by the China tax and law experts at Dezan Shira & Associates, who have been doing business in China for over 20 years.
James Caan talks to Real Business on his first business in association with Orange
