Shenzhen Longhua District issues several measures to support the development of blockchain industry

Notice source: Longhua District Development and Reform Bureau

All subdistrict offices, district-level units, and units stationed in the district:

The "Several Measures to Support the Development of Blockchain Industry in Longhua District, Shenzhen" has been approved by the District Government. It is now issued for your implementation.

Shenzhen Longhua District People's Government Office

February 1, 2021

Several measures taken by Longhua District, Shenzhen to support the development of blockchain industry

Chapter I General Provisions

Article 1: These measures are formulated in accordance with the relevant national, provincial and municipal policies to support the development of the blockchain industry and the actual situation of our district in order to vigorously promote the innovation and application of blockchain technology, promote the gathering of various blockchain resources in Longhua, and accelerate the creation of a blockchain industry development ecosystem.

Article 2 These measures apply to blockchain enterprises or institutions whose business registration, tax collection and management relations and statistical relations are within the Longhua District of Shenzhen, which have a sound financial system and independent legal person status, and which promise not to move their registration and office addresses out of the district, change their tax obligations in the district, or reduce their registered capital within three years after obtaining financial support.

Article 3 The blockchain enterprises or institutions referred to in these measures refer to blockchain enterprises or institutions that implement independent accounting and are engaged in blockchain technology research, product development, data processing, scenario application, platform operation, testing and certification, etc. Blockchain enterprises or institutions that directly or covertly engage in ICO token issuance activities, operate or invest in virtual currency trading platforms, etc. are excluded. Blockchain enterprises that apply for support under these measures must be registered and approved by the District Development and Reform Bureau before applying.

Chapter II Identification Standards

Article 4 Applicants for blockchain enterprise or institution certification must meet the following five conditions at the same time:

(1) The business direction is mainly based on blockchain technology or industry, and it has independent blockchain R&D or business sites.

(2) Having actually carried out blockchain research and development or application projects and formed blockchain-related products, platforms or projects.

(3) The blockchain R&D or platform operation team must have no fewer than three technical members and provide social security certificates for no less than six months.

(IV) Having a certain asset scale and relatively stable source of funds, and the R&D investment in the blockchain industry is not less than RMB 1 million.

(5) Possessing independent intellectual property rights (invention patents, utility model patents or software copyrights) or core technologies in blockchain technology.

In addition, blockchain enterprises or institutions that have been registered with the Cyberspace Administration of China and comply with Article 2 of these measures can be directly recognized as blockchain enterprises in our district.

Chapter III Support Measures

Article 5 [Settlement Incentives] Blockchain companies that receive investment from angel investment, venture capital, venture capital and other funds will be given support of up to 3 million yuan based on 10% of the funds in place after being approved.

For certified blockchain enterprises that settle in this district, support will be provided at 40% of their contribution to the district-level economy for three consecutive years, with a maximum of 1 million yuan per year.

For the recognized blockchain industry associations settled in this district, which are registered and established in the national, provincial, municipal and district government functional departments in accordance with the law, a one-time activity fund subsidy of 1 million yuan, 600,000 yuan, 400,000 yuan and 200,000 yuan will be given respectively.

Article 6 [Growth Rewards] A subsidy of 500,000 yuan will be given annually to recognized blockchain enterprises or institutions with annual operating income of more than 3 million yuan and a year-on-year growth of more than 50%.

For recognized blockchain enterprises or institutions whose annual operating income reaches RMB 10 million, RMB 50 million, or RMB 100 million for the first time, rewards of RMB 1 million, RMB 2 million, or RMB 5 million will be given respectively. The same enterprise will be rewarded up to RMB 5 million by making up the difference.

A reward of 5 million yuan will be given to blockchain companies or institutions that are newly approved to be listed on major domestic and foreign capital markets.

Blockchain enterprises that pass the national high-tech enterprise certification for the first time will be awarded 400,000 yuan; blockchain national high-tech enterprises that pass the re-examination will be awarded 200,000 yuan.

Article 7 [Platform Rewards] A reward of RMB 1 million will be given to newly approved blockchain public service platforms with testing, storage and other functions at the provincial level or above and that have obtained the corresponding qualifications.

Newly approved national, provincial, and municipal blockchain technology key laboratories, engineering (technology) research centers, enterprise technology centers, and other innovation carriers will be given rewards of 5 million yuan, 3 million yuan, and 1.5 million yuan respectively, in addition to enjoying other district policy support.

Newly approved national, provincial, and municipal blockchain professional maker spaces (technology business incubators) will be given rewards of 1.2 million yuan, 600,000 yuan, and 300,000 yuan respectively, in addition to enjoying other district policy support. Moreover, for the above-mentioned maker spaces (technology business incubators), if more than five newly certified blockchain companies or institutions are introduced, a reward of 50,000 yuan will be given for each introduced company, and each maker space (technology business incubator) will receive a maximum of 1.5 million yuan in support per year.

Article 8 [Application Rewards] Support blockchain enterprises in the district to accelerate scenario application demonstrations, select no more than 10 key blockchain application scenario projects each year, and provide a 20% funding subsidy to the builder for each project, up to 200,000 yuan; encourage traditional enterprises to implement blockchain applications, select no more than 10 key blockchain application projects each year, and provide a 20% funding subsidy to the application party for each project, up to 200,000 yuan.

Article 9 [Technical Rewards] Enterprises or institutions that take the lead in formulating international, national, and industry blockchain technology and application standards (specifications) will be given a one-time reward of RMB 2 million, RMB 1.5 million, and RMB 500,000, respectively, with a maximum of RMB 2 million per enterprise per year.

The top three enterprises or institutions that participate in the formulation of international, national and industry blockchain technology and application standards (specifications) will be given a one-time reward of RMB 1 million, RMB 750,000 and RMB 250,000 respectively, with a maximum of RMB 1 million per enterprise per year.

For recognized blockchain companies that obtain blockchain invention patent authorization in the United States, the European Union or Japan, a reward of 100,000 yuan will be given for each; for those that obtain Chinese invention patent authorization, a reward of 50,000 yuan will be given for each; the same patent can be rewarded to a maximum of two countries or regions, and the total annual reward for a single company is up to 1 million yuan.

Enterprises that purchase blockchain patent technology and sign contracts will be given a subsidy of up to 200,000 yuan based on 10% of the actual payment.

Article 10 [Fund Support] The District Investment Guidance Fund is encouraged to invest in blockchain sub-funds registered in Longhua District in accordance with the District Fund Management Measures, so as to attract social capital to form a capital supply effect. The sub-funds provide enterprises with angel investment, equity investment, post-investment value-added and other multi-level services.

Article 11 [Financial Support] Blockchain enterprises, institutions or legal representatives of enterprises (institutions) that obtain loans from financial institutions and use the loans for actual business operations will be given an interest subsidy of 50% of their actual interest expenditure and a subsidy of 50% of the guarantee fee for a period of 3 years, with a maximum annual total of RMB 1.5 million.

Article 12 [Property Support] For blockchain enterprises or institutions that do not own land and buildings in our district, if they rent industrial buildings owned by the district and use them for their own purposes, the rent preferential standards shall be implemented in accordance with relevant policies. If rent preferential standards have not yet been formulated, they will be supported at 50% of the total rent for three consecutive years from the date of settlement, with a maximum of RMB 1 million per year; for blockchain enterprises or institutions that rent other office buildings for their own purposes, if their economic contribution per square meter reaches RMB 2,000, they will be supported at 50% of the total rent for three consecutive years from the date of settlement, with a maximum of RMB 1 million per year.

Article 13 [Exchange Support] For those who host international and national blockchain seminars, forums and other high-level exchange meetings, after being approved and filed, a subsidy of 50% of the hosting costs will be given, with the maximum support for a single event of the same institution being 600,000 yuan and the maximum annual support being 1.2 million yuan. For those who host exchange meetings below the national level, a subsidy of 50% of the hosting costs will be given, with the maximum support for a single event of the same institution being 300,000 yuan and the maximum annual cumulative support being 600,000 yuan.

Article 14 [Talent Support] Talents of blockchain enterprises are included in the talent protection scope of the district, and can enjoy preferential policies and convenience measures such as talent subsidies, housing, spouse employment, children's schooling, and medical insurance in accordance with relevant regulations. Enterprises, industry associations or alliances with blockchain training qualifications and capabilities in the jurisdiction are encouraged to carry out blockchain talent training. For training activities registered with the district government, support will be provided in accordance with 50% of the actual funding input (venue fees, teacher fees, teacher travel expenses, training materials fees and other prescribed fees for training). The maximum support for a single activity of the same institution is 300,000 yuan, and the maximum cumulative support for the whole year is 600,000 yuan.

Chapter IV Supplementary Provisions

Article 15: It is strictly prohibited for all kinds of intermediary institutions or individuals to illegally withhold, misappropriate, misappropriate, or falsely claim reward funds. If an enterprise applying for support funds commits fraud to obtain funds or violates the relevant commitments in Article 2, once discovered, the competent department will cancel the reward and recover the reward funds that have been issued, and will not accept the enterprise's reapplication within three years, and its dishonest behavior will be included in the enterprise credit information. If it constitutes a crime, criminal liability will be pursued in accordance with the law.

Article 16 The business income of enterprises referred to in these measures shall be calculated based on the independent legal person of the reporting unit and its first-level subsidiaries with a holding of more than 50%. The equity relationship in each year shall be based on the equity registration status on December 31 of the year. The economic contribution referred to in these measures refers to the total tax payment in a complete accounting year (tax payment time) (including the transfer of the "exempt" tax amount of value-added tax on exported goods and personal income tax). The district economic contribution referred to in these measures refers to the portion of value-added tax, corporate income tax, etc. included in the district-level local share during the period of tax payment paid by the reporting enterprise in the district. The major domestic capital markets referred to in these measures include the Shanghai Stock Exchange and the Shenzhen Stock Exchange, and the major overseas capital markets include the New York Stock Exchange, the Nasdaq Stock Exchange, the London Stock Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, and the Frankfurt Stock Exchange. The technical members referred to in these measures refer to technical personnel engaged in blockchain architecture design, underlying technology, system application, system testing, system deployment, and operation and maintenance. The "above" referred to in these measures includes the original number, and the "below" does not include the original number.

Article 17 If the same project or matter that meets the requirements of the measures also meets the requirements of other supporting policies of the district (including the policy requirements of the superior departments requiring the district to provide matching or bear funds), support will be given in accordance with the principle of higher priority and no duplication, unless otherwise specified. The actual amount of reward received by the enterprise may be appropriately adjusted according to the fiscal budget of the year. The tax-related expenses of the reward shall be borne by the enterprise or individual.

Article 18 These measures shall come into force on February 15, 2021 and shall be valid for three years. Upon expiration of the validity period or if the relevant laws and policies change, they shall be evaluated and revised based on the implementation situation.

Article 19 These measures shall be interpreted by the Longhua District Development and Reform Bureau.