Notice on Printing and Issuing 1

TKFGB (2010) No. 74

Notice on Printing and Issuing: Several Opinions on Accelerating Economy Development of Nengda Business District Head Office

For all government departments, towns, townships, neighborhoods, and agencies stationed in the Nantong Economic and Technological Development Area (NETDA) and other relevant units:

According to research conducted by the Nantong Party working committee and NETDA administration committee, Several Opinions on Accelerating Economy Development of Nengda Business District Head Office is hereby printed and issued for your compliance.

Office of the Administration Committee of Nantong Economic & Technological Development Area

August 16, 2010

Several Opinions on Accelerating Economy Development of Nengda Business District Head Office

For the purposes of vigorously developing head office economy and promoting transformation and upgrading of industry structure, the following opinions are hereby put forward in accordance with relevant provisions:

Several Opinions of the Nantong Communist Party of China (CPC) Committee and Nantong People’s Government on Promoting Good and Fast Development of Nantong Economic & Technological Development Area (TWF [2008] No.6)

Several Opinions of Nantong People’s Government on Accelerating Development of Head Office Economy in New Urban Area (TZF [2010] No.62)

I. Establish Special Financial Support Fund for Head Office Economy

The Special Fund for Head Office Economy of Nengda Business District will be set aside from the financial budget of the development area from 2010. The fund will be mainly used to establish head offices in Nengda Business District by domestic and foreign enterprises, encourage new head offices to purchase and rent offices, promote healthy development of head office enterprises, and carry out relevant necessary work, including head office enterprise recognition and incubation.

II. Offer Subsidies to New Incoming Enterprises

1. Subsidies for construction of head office buildings

When a newly recognized and established head office enterprise constructs a head office building for its own use in Nengda Business District, a lump-sum starting subsidy will be granted. The subsidy will account for 5-10 percent of the total project investment capital recognized by the administration committee. In principle, the subsidy for each comprehensive head office shall not exceed 20 million yuan ($3.2 million) and the subsidy for each functional head office shall not exceed 10 million yuan. A “case-by-case” award and subsidy policy will be implemented for project construction of special head office enterprises or head office enterprises in emerging enterprises.

2. Subsidy for purchasing offices

When a newly established and recognized head office enterprise purchases offices for its own use, the development area plans to offer a lump-sum subsidy at the rate of 500 yuan/square meter on the basis of advising real estate companies to provide the most preferential housing price. In principle, the subsidy for each comprehensive head office shall not exceed 4 million yuan and the subsidy for each functional head office shall not exceed 2 million yuan.

3. Subsidy for renting offices

Where a newly established and recognized head office enterprise rents offices, a lump-sum subsidy totaling 12-month’s rent will be offered. The rent shall be calculated as 40 percent of market rent price at the same location. In principle, the rent subsidy for each comprehensive head office shall not exceed 1.5 million yuan and the rent subsidy for each functional head office shall not exceed 1 million yuan.

III. Tax Preference

Newly increased financial retention in the development area arising from tax payment by a recognized head office enterprise in Nengda Business District will be offered a 100 percent award for its own development. Fifty percent of the newly increased financial retention will be offered to the head office enterprise as an award in the fourth or fifth year.

IV. Reduction and Exemption of Stipulated Fees

A recognized head office enterprise having entered Nengda Business District will fully enjoy reduction and exemption policies from governmental funds (capital), administrative charges and service charges in the development area. All public services are charged at a lower amount.

V. Award for Management

If a head office enterprise having entered Nengda Business District has accomplished business achievements and made great contributions to growth in the local economy, it can apply to be listed as a large enterprise under financial and taxation support by the Nantong people’s government. The head office enterprise will also enjoy award policies in the development area for the management of large taxpayers.

VI. Subsidy and Incentive for Special Talents

1. Two well-decorated apartments will be offered free of rent for five years for talent from head office enterprises that pay taxes totaling more than 5 million yuan every year. When senior management personnel above the level of executive deputy general manager purchase houses for personal residence, the portion of annual income tax paid by them and retained by the local government will be completely offered to them as a subsidy over the period of five years.

2. Where a head office brings in high-level and urgently needed talent above the doctoral level, a life allowance and housing subsidy will be provided. The fund will be preemptively set aside from a special talent fund of the Nantong people’s government and the development area.

VII. Encourage Capital Expansion

1. Support for going public Where a head office enterprise goes public after entering Nengda Business District, another 600,000 yuan will be offered on the basis of the original award offered by the Nantong people’s government.

2. Support for acquisition, merger and restructuring Where a head office enterprise (group) carries out an acquisition, merger or restructuring in the development area in accordance with the development strategy plan, a loan interest discount will be offered to the enterprise.

VIII. Incentive for Technical Innovation

1. Head office enterprises eligible to apply for recognition as high-tech enterprises will be given assistance so they can be recognized as early as possible.

2. Auxiliary support will be provided on the basis of scientific and technological high-level capital support for head office enterprises implementing significant scientific and technological projects

3. Where a head office enterprise incurs research and development expenses in developing new technology, and new product, new process and relevant conditions are met, these expenses will be deducted in calculating taxable income as provided.

IX. Land Use Guarantee

Special methods, reasonable assignment conditions, and priority will be given to guarantee head office enterprise land use demand and incorporate office and production land into the annual land supply plan. Large high-level head office enterprises operating in broad areas that need to build independent head office buildings in Nengda Business District or plan to establish production base development will be encouraged by the State in the development area.

X. Award for Persons Having Made Contributions

Lump-sum awards will be offered to units and individuals that have made outstanding contributions to bringing famous head office enterprises inside and outside the development area into Nengda Business District.

Measures for recognizing head office enterprises will be separately formulated.

These opinions shall be implemented as of the day of promulgation.

Printed and issued on August 16, 2010 Printed in 30 copies in total