Recently, Guangzhou issued the Implementation Plan for Subsidy for Enterprises’ Expenditures in Research and Development to make significant reform of the financial support mechanism for scientific research and development. Guangzhou aims to enhance the incentives for innovation to double the municipal financial support for research and development by 2017 and raise the proportion of social research and development investment in local GDP to 2.7%. Four levels of subsidy will be provided:

 

For enterprises with research and development expenditures of less than RMB100 million last year, subsidy equal to 5% of the expenditures will be provided.

 

For enterprises with research and development expenditures of RMB100 million to RMB500 million last year, subsidy of RMB5 million will be provided for the part of expenditures of RMB100 million and subsidy equal to 2.5% of the rest part of expenditures will be provided.

 

For enterprises with research and development expenditures of RMB500 million to RMB1 billion last year, subsidy of RMB15 million will be provided for the part of expenditures of RMB500 million and subsidy equal to 2% of the rest part of expenditures will be provided.

 

For enterprises with research and development expenditures of more than RMB1 billion last year, subsidy of RMB25 million will be provided for the part of expenditures of RMB1 billion and subsidy equal to 1% of the rest part of expenditures will be provided.

 

Source: excerpts from Guangming Daily, June 25, 2015