Since 2012, Nanjing Municipal People's Government has made an overall arrangement for an annual special fund for developing a headquarters economy (hereinafter referred to as the "special fund"). The special fund is mainly used to encourage domestic and international enterprises to set up headquarters or regional headquarters in Nanjing. The special fund provides a subsidy for purchasing or renting office space in Nanjing, and is used to assist headquarters enterprises in Nanjing to develop.
A one-time reward of RMB 5 million that can be given to an approved foreign-invested company or a recognized regional headquarters of a national transnational corporation by the Ministry of Commerce. The reward will be paid to the company over three years, at 40%, 30%, and 30%, respectively.
Subsidies will be given to recognized headquarters enterprises or growth-type headquarters enterprises according to its value-added tax, business tax, and corporate income tax contribution.
Subsidies will be given to newly established headquarters enterprises for purchasing, constructing, or renting office space. During the subsidy period, the offices cannot be rented or sold or have the purpose of use change.
The municipal government will give a certain reward to the person in charge (only one) of the enterprise that is ranked in the top 3 of all headquarters enterprises in Nanjing. This reward is based on the ranking of the growth in quantity and speed with which the enterprise contributes annual municipal and district (county) taxes compared to that of the previous year.
The president or general manager of a newly established headquarters enterprise who purchases a residence for the first time within three years of arriving in Nanjing will receive a reward of 50% of the actual retained portion of the individual income taxes paid at the municipal and district (county) levels.
In accordance with the overall urban master plan and land use plan for the whole city, the land used for headquarters economic development must be included in the annual land supply plan. Subject to the approval of the municipal government, certain access conditions may be set at the time of bidding, auction, and sale of land used for headquarters of foreign-invested enterprises. The construction area of office space for the enterprise’s own use cannot be less than 70% of the entire construction area.
In the allocation of land units that use industrial plants, warehouses, and traditional commercial streets to set up or attract headquarters enterprises, the use of land and the holder of the right to use the land cannot be changed.
Headquarters enterprises that enjoy financial and taxation support shall submit relevant documents during recognition to promise that the operating period in Nanjing will not be less than 10 years and that the registered capital will not be reduced within 10 years. Where a headquarters enterprise's organizational structure or business or service scope changes, headquarters enterprise shall report the change to the appropriate municipal authority for recognition. If the enterprise does not comply with the conditions for a headquarters enterprise after the change, the enterprise will no longer enjoy the preferential policies. If a headquarters enterprise rents or sells office space or changes the use of office space after enjoying financial subsidies, the headquarters enterprise shall return the subsidies that have been received and pay interest according to the bank’s loan interest rate for the corresponding period.
Where the reward funds involve taxes (transferred to the national treasury from the accounts of taxpayers) at the municipal and district (county) levels, the municipal and district (county or development zone) tax authorities where the headquarters enterprises pay taxes share the reward funds according to the principle of "the one who gets benefits undertakes reward funds".
A headquarters enterprise can apply for other preferential policies in Nanjing but cannot enjoy the same type of financial incentives and subsidies more than once. Enterprises shall select one preferential policy from the policies available at the time and, in principle, shall not change policy for three years.
Rewards and subsidies for the headquarters with legal personality of financial institutions, quasi-financial institutions, and financial background headquarters will be executed in accordance with the Several Opinions of Nanjing Municipal People's Government on Further Accelerating Reform, Innovation, and Development of the Financial Industry of the Whole City.