An announcement on Releasing the Rules for the Implementation of the Development of a Famous Characteristic Software City of Ningbo

An announcement on Releasing the Rules for the Implementation of the Development of a Famous Characteristic Software City of Ningbo

NBEIB Software [2019] No. 76

[Policy Guidance]

I. Background

The Implementation Opinions on the Development of a Famous Characteristic Software City of Ningbo (hereinafter referred to as “Implementation Opinions”, Ningbo G Office [2018] No. 115) was released by the General Office of the Ningbo Municipal People’s Government in September 2018 with the purpose of seizing the historic opportunities of software technology revolution and industrial transformation, implementing major provincial and national strategies and planning objectives, better playing the role of software for added-value, efficiency and intelligence, developing the core carrier of the development of software and information service industry in Ningbo, and cultivating the software and information service industry into a new 100-billion-level industry, thus developing Ningbo into a Famous Characteristic Software City. In order to implement the spirit of the Implementation Opinions, further clarify applicable objects, declaration conditions and supporting standards of various policies and measures, ensure the fairness and transparency of relevant policies, and improve the efficiency of the use of financial funds, the Rules for the Implementation of the Development of a Famous Characteristic Software City of Ningbo (hereinafter referred to as Implementation Rules) has been formulated in accordance with relevant terms of the Implementation Opinions.

II. Major References

1. Announcement of the Ministry of Industry and Information Technology of the People’s Republic of China on Releasing the Planning for the Development of the Software and Information Technology Service Industry (Year 2016-2020) (MIIT Regulation [2016] No. 425);

2. Announcement of the Ministry of Industry and Information Technology of the People’s Republic of China on Releasing the Management Measures for the Development of Famous Software Cities in China (Trial) (MIIT Information Software [2017] No. 11);

3. Implementation Opinions of the General Office of the Zhejiang Provincial People’s Government on Further Accelerating the Development of the Software and Information Service Industry (Zhejiang G Office [2017] No. 153);

4. Implementation Opinions on the Development of a Famous Characteristic Software City of Ningbo (Ningbo G Office [2018] No. 115).

[Body]

The Announcement of Ningbo Municipal Economic and Information Technology Bureau and Ningbo Municipal Finance Bureau on Releasing the Rules for the Implementation of the Development of a Famous Characteristic Software City of Ningbo

Economic and Information Technology Bureau and Finance Bureaus of all districts, counties (sub-districts), Economic Development Bureaus and Finance Bureaus of all administrative committees, and all relevant units,

The Rules for the Implementation of the Development of a Famous Characteristic Software City of Ningbo is now released for your reference and compliance with the purpose of promoting the development of the software industry in Ningbo and developing a famous characteristic software city of Ningbo.

Ningbo Municipal Economic and Information Technology Bureau & Ningbo Municipal Finance Bureau

6 June 2019

The Rules for the Implementation of the Development of a Famous Characteristic Software City of Ningbo

In order to implement the spirit of theImplementation Opinions on the Development of a Famous Characteristic Software City of Ningbo (hereinafter referred to as “Implementation Opinions”, Ningbo G Office [2018] No. 115), further clarify applicable objects, declaration conditions and supporting standards of various policies and measures, ensure the fairness and transparency of relevant policies, and improve the efficiency of the use of financial funds, the Rules for the Implementation of the Development of a Famous Characteristic Software City of Ningbo (hereinafter referred to as Implementation Rules) has been formulated in accordance with relevant terms of the Implementation Opinions.

I. To provide more support for the development of Ningbo Software Industrial Park

The non-industrialized core public service platform (not more than one in principle) introduced into (developed in) the core area of Ningbo Software Industrial Park to serve the software industry in Ningbo will be supported with 30% of the actual investment for the construction of the platform, but with a maximum of not more than 5 million yuan.

II. To attract more investment

1. For a software enterprise and research and development institution established in Ningbo after January 1, 2018 by one of those “Global Top 500” and “China Top 100” software enterprises with a registered capital of 10 million yuan or above each, the annual main business income reaching 50 million yuan or above for the first time in 2 years from the date of its establishment, and the social security payment for at least 100 employees be paid for at least 3 consecutive months, the enterprise/ institution in Ningbo is allowed to enjoy 15% of the main business income as a reward at the highest but no more than 15 million yuan in total.

2. For other domestic and foreign software enterprises settling down in Ningbo after January 1, 2018 with the annual main business income reaching 10 million yuan or above each for the first time in 2 years from the date of its establishment and the social security payment for at least 50 employees be paid for at least 3 consecutive months, the enterprise (institution) is to enjoy 10% of the main business income as a reward at the highest but no more than 5 million yuan in total.

3. For those newly established software enterprises set up by a local enterprise in Ningbo after January 1, 2018 to carry out businesses of software development, system integration and information technological services with the annual main business income reaching 5 million yuan or above each for the first time in 3 years from the date of its establishment, the enterprise is to enjoy 10% of the main business income as a reward at the highest but no more than 1 million yuan in total.

Each applicant is allowed to choose only 1 category for application of the reward.

III. To encourage enterprises to develop better and stronger

1. Reward for fast development

If the annual main business income and the growth rate of the two categories of taxes (enterprise income tax and value-added tax) are above 15% or above, and the enterprise income tax and value-added tax are paid more than 500 thousand yuan or above, a certain reward shall be given. Each enterprise is allowed to enjoy the reward up to 3 times at the most.

2. Reward for large-scale income

The non-embedded software enterprises with their annual software business income reaching 50 million yuan, 100 million yuan and 200 million yuan for the first time and those embedded software enterprises, system integration enterprises and information service enterprises with their business income reaching 100 million yuan, 200 million yuan and 500 million yuan for the first time respectively, highest one-time award of 1 million, 2 million and 3 million yuan are to be granted accordingly. Industrial enterprises with their R&D and production conforming to the Catalogue of Embedded System Products of the Statistical Survey System of Software & Information Services, issued by the Ministry of Industry and Information Technology of the People’s Republic of China, which boasts software copyright and audited software business income, is able to enjoy the same reward as that for embedded software enterprises. This award is based on the principle of grading difference and non-repetition from the top.

3. Reward for investment introduction

For the innovative software and information service enterprises established after January 1, 2016 and have obtained equity financing from professional private equity investment institutions registered and filed by China Securities Investment Fund Association after January 1, 2018 with the investment amount of more than 10 million yuan or above with a duration of more than 1 year and hasn’t been withdrawn as the date of the application for the reward, not more than 5% of the actual amount of investment would be granted to them but no more than 1 million yuan in total.

4. Reward for improvement of comprehensive quality

Enterprises in case certified among Top 100 Software Companies in China, Top 100 Internet Companies and Unicorn Software Enterprises after January 1, 2018 are able to enjoy a one-time award of up to 2 million yuan at the most.

IV. To encourage enterprises for innovative development

1. Reward for R&D

Software enterprises whose annual R&D investment accounts for more than 6% of sales income and whose R&D investment exceeds 2 million yuan will be rewarded with not more than 50% of those whose R&D investment exceeds 6%, but up to 2 million yuan at the most. This application can’t be repeatedly made in case already been made with the Ningbo Science and Technology Bureau.

2. Reward for provincial and national projects

For projects supported by state-level funds, additional subsidies shall be granted at a rate of not exceeding 50% of the amount of state-level subsidies, and the additional amount of subsidies for a single project shall not exceed 1 million yuan. Pilot demonstration projects supported by the Zhejiang Provincial People’s Government such as software information service projects, industrial Internet (Internet of Things), big data and service-oriented manufacturing applying for reward from the Ningbo Municipal Economic and Information Technology Bureau shall be awarded with a one-time reward of not more than 300 thousand yuan, and the maximum annual reward for each enterprise shall not exceed 600 thousand yuan.

3. Reward for certified projects

For software enterprises that first apply for ITSS, confidentiality qualification and information security certification, each certification project shall be rewarded with no more than 100 thousand yuan. The maximum annual reward for each applying enterprise shall not exceed 300 thousand yuan.

V. The definition of “R&D investment” mentioned here shall be referred to in accordance with the Announcement of the Ministry of Finance, State Administration of Taxation and Ministry of Science and Technology on Improving the Policy of Increasing and Deducting R&D Expenses before Taxation (Finance and Tax [2015] No. 119) and relevant documents. The enterprises referred to in these Rules shall all be independent legal person enterprises.

VI. Procedures of application, examination and approval

1. Annual application requirements shall be notified separately, and relevant policy provisions, application guidelines, application forms, confirmation announcements and subsidized documents shall be publicized on the official website of the Ningbo Municipal Economic and Information Technology Bureau. Within the prescribed time limit, enterprises (units) that meet the requirements for application shall submit their application materials to local economic and information technology bureaus and financial bureaus for examination and approval for further submitting the application materials to the Ningbo Municipal Economic and Information Technology Bureau.

2. After preliminary examination of the application materials, Ningbo Municipal Economic and Information Technology Bureau would organize personnel or relevant experts to examine the application materials, invite personnel or entrust intermediaries to carry out onsite verification and acceptance inspection in case needed, publicize the final results of the examination, and release them after publication without objection. Ningbo Municipal Finance Bureau allocates subsidized funds according to the published results. Relevant enterprises (units) shall apply for allocation of rewarding funds from local finance bureaus.

VII. Ningbo Municipal Economic and Information Technology Bureau is responsible for explanation of the Rules for the Implementation of the Development of a Famous Characteristic Software City of Ningbo.

VIII. The Rules for the Implementation of the Development of a Famous Characteristic Software City of Ningbo takes effect upon being released and would be valid for the same duration with that of the Implementation Opinions on the Development of a Famous Characteristic Software City of Ningbo(Ningbo G Office [2018] No. 115).