Encouraging innovations

Those private enterprises developing the first (set) major technological equipment will be subsidized 5 million yuan ($723,515).

The key laboratories that have been identified by provincial and municipal authorities will receive a one-off subsidy of 2 million yuan.

The eligible new-type research institutes will receive a one-off subsidy of 1 million yuan upon establishment; the maximum subsidy for scientific instrument, equipment and software is 30 million yuan; businesses that have been cultivated and incubated into national high-tech enterprises will be granted a reward of 200,000 yuan for each R&D institute.

Private enterprises can receive a maximum subsidy of 8 million yuan for their R&D expenditure.

Newly-identified national high-tech private enterprises will be given a one-off reward of 100,000 yuan.

Increasing investment

The eligible privately-run undergraduate education institutions and vocational colleges will be given a one-off reward of 1.2 million and 800,000 yuan, respectively; those eligible privately-run non-profit schools in compulsory education system and kindergartens will also be rewarded.

The private national Grade-III Class-A and Grade-III Class-B hospitals will be granted a one-off subsidy of 5 and 2.5 million yuan, respectively. A one-time subsidy of 5 million yuan, 3 million yuan and 2 million yuan will be granted to the hospitals in categories of key national clinical specialties, namely, western medicine, traditional Chinese medicine and clinical nursing, respectively. Those hospitals that have obtained the JCI certification by the Joint Commission on Accreditation of Healthcare Organizations for the first time will receive a one-off reward of 5 million yuan. The eligible private hospital offering basic medical service will be given a corresponding subsidy per bed according to the standards set for government-funded hospitals.

A one-off subsidy of 20,000 yuan, the annual operation fee of 2,400 yuan and annual insurance fee of 150 yuan per bed will be offered to high-end nursing homes for the elderly. They can also receive a one-off subsidy of 500,000 yuan for equipment if they open medical institutions.

Tax reduction

For eligible small low-profit enterprises, the portion of annual taxable income not exceeding 1 million yuan shall be reduced by 25 percent to the taxable income, and the enterprise income tax shall be paid at the tax rate of 20 percent; for the portion of annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan, the enterprise income tax shall be reduced by 50 percent to the taxable income, and the enterprise income tax shall be paid at the tax rate of 20 percent. For the above-mentioned small low-profit enterprises established since January 1, 2018, the local retention portion of their paid individual income tax will be granted to the enterprises as rewarded immediately.

Appropriate incentives shall be given to the amount of enterprise income tax or individual income tax paid by private enterprises or their individual shareholders in the proceeds of equity transfer.

Relieving financing difficulties

Xiamen will give more weight to assessing the credit business of private enterprises; formulate and improve the system of their due diligence and exemption of financial services, clarify the responsibility, further implement the management requirements of non-performing loans tolerance, and increase the non-performing rate of private loans by 2 percentage points; establish a "white list" system for non-repayment and renewal, so as to achieve seamless docking of repayment and renewal.

A new emergency fund of 1 billion yuan for loan repayment has been launched to help meet the capital turnover needs of enterprises in repayment and renewal of loans.

Xiamen will support private enterprises to directly raise funds through the capital market and give them corresponding incentives.

Helping enterprises grow bigger and stronger

The eligible enterprises that have been newly identified as private industrial enterprises above designated size, enterprises above designated size in wholesale and retail trades, will be granted 50 percent of the incremental part of the local tax revenue paid by enterprises in the previous year to expand reproduction, and the maximum period for the reward is three years. Private enterprises whose after-tax profits are allocated to individuals, or converted to increase capital or reinvest in Xiamen for expanding reproduction, will be given part or full local retention portion of their paid individual income tax

The technological renovation projects of private industrial enterprises above designated size will be subsidized a maximum of 10 million yuan.