1. Profile:
Based on the IT industry foundation of Tianhe Scitech Park founded in 1991, Tianhe Software park was established in August 1999. In December 1999, it was duly entitled by the State Planning Commission and the Ministry of Information Industry as one of the China Software Industry Bases.
Since the founding of Tianhe Software Park, the economic index of the park has been growing by a two-digit rate. In 2005, the gross income of software enterprises reached RMB 19 billion Yuan, RMB 9.5 billion Yuan of which are the software and service income. The annual growth rate is around 30%.
Tianhe Software Park is the pool of software industry. It is hosting more than 1000 software enterprises, 500 out of them are Certified Software Enterprises. 150 have got ISO accreditation and 15 have passed CMM II. More than 1800 software products have been registered.
The Administrative Commission of Tianhe Software Park is the accredited government organization responsible for the development and construction of the campuses as well as providing supportive services and administration for the enterprises in the Park.
2. Major Software Sectors:
March 1991, Tianhe SciTech Park was certified as one of the state-level hi-tech industry development zones by the State Council;
August 1999, Tianhe Software Park was approved to set up on the basis of Tianhe SciTech Park by Guangzhou Municipal Government;
Dec. 1999, Tianhe Software Park was certified as the National Torch Program Software Industry Base by the Ministry of Science and Technology;
June 2001, Tianhe Software Park was certified as one of the top ten China Software Industry Bases by the State Development Planning Commission and the Ministry of Information Industry;
August 2005,The establishment of a China Network Games and Animation lndustry Base in Tianhe Software Park was approved by the General Administration of Press and Publication.
3. Milestones：
March 1991, Tianhe SciTech Park was certified as one of the state-level hi-tech industry development zones by the State Council;
August 1999, Tianhe Software Park was approved to set up on the basis of Tianhe SciTech Park by Guangzhou Municipal Government;
Dec. 1999, Tianhe Software Park was certified as the National Torch Program Software Industry Base by the Ministry of Science and Technology;
June 2001, Tianhe Software Park was certified as one of the top ten China Software Industry Bases by the State Development Planning Commission and the Ministry of Information Industry;
August 2005,The establishment of a China Network Games and Animation lndustry Base in Tianhe Software Park was approved by the General Administration of Press and Publication.
4.Preferential Policies
4.1 Industrial Policies at State Level
All preferential policies promulgated by Guangzhou City, Guangdong Province and the State for the state-level hi-tech industry development zone and the China Software Industry Base apply to the Parks.
Preferential Policies for Hi-tech Industries.
Corporate income tax is waived for two years for a certified Newly Established Hi-tech Enterprise and reduced to 15% for an annually certified Hi-tech Enterprise.
A new or regular Hi-tech Enterprise shall be exempted from sales tax for its technology service contract after registration.
Adjustive tax for investments to the construction of hi-tech infrastructures or to the technology reform projects shall be waived. Supportive tax exemption and reduction is available for Hi-tech enterprise or hi-tech projects using special loans of the state in case of repayment difficulties.
Preferential Policies for Software Enterprises:
A certified Newly Established Software Enterprise shall be exempted from corporate income tax in the first two profit-making years and allowed a one half reduction in the next three years;
Before 2010, the value-added tax for selling software products shall be levied at the rate of 17% but the portion exceeding 3% shall be returned immediately after levy;
Software Enterprise importing equipment (except for products listed in the Directory of Non-Tax-Free Products) and its relevant technology (including software) shall be exempted from custom tax and value added tax in the course of importing;
The actual salaries and cost of trainings for the staff members of the Software Enterprise can be deducted before corporate income tax;
Beside the above listed income tax exemptions or reductions, if a Software Enterprise is enlisted in the National Arrangement as a Key Software Enterprise, the corporate income tax shall be levied at the reduced rate of 10%.
Preferential Policies for Foreign Invested Enterprises (FIEs):
FIEs of production nature scheduled to operate for more than 10 years, enjoy a government waiver of corporate income tax for the first two years of profitable operation, cut by 50% for the next three years;
The investor of a technologically advanced or an export-oriented enterprise is not required to pay the income tax when remitting whose share of distributed profits;
After the expiration of tax concessions stipulated by the state, the income tax for an export-oriented enterprise shall be cut by half given a 70% export of its total output;
After the expiration of tax concessions stipulated by the state, the income tax for a technologically advanced enterprise shall be cut by half for another 3 years;
To promote the reinvestment of profits, a 40% tax refund is granted to foreign investors that reinvest their share of distributed profits for five or more consecutive years. Additionally, 100% refunds are permitted if the reinvestment is in a technologically advanced or an export-oriented enterprise.
4.2 Supporting Policies at the city (Guangzhou) Level.
Beside the above policies, enterprises are entitled to the policies promulgated by the municipal government of Guangzhou.
Subsides for Enterprise Certifications
A fiscal subsidy (RMB 50,000 at most) shall be granted to the certified Software Enterprise which passes ISO9000 accreditation. A fiscal subsidy (RMB 300,000 at most) shall be granted to the certified Software Enterprise which obtains CMM accreditation.
Subsides for Returned Overseas Scholars
A subsidy of RMB 100, 000 shall be granted to the certified returned overseas scholar who has set up a company in Guangzhou as starting fund.
Special Funds for Technological Projects
A budget of more than RMB 50,000,000 shall be arranged for supporting project R&D, medium test and industrialization of software and IC design enterprises.
4.3 Preferential Policies implemented in the Park:
More special policies and services can be enjoyed by the enterprises registered in Tianhe Software Park including:
Free Administrative Services
No administration fees will be collected for Software Enterprise certification, Software Product register, annual examination for Software Enterprise, Newly Established Hi-Tech Enterprises certification, Hi-Tech Enterprise Certification, project proposal of FIE and Scientific Project Fund Application. Fees for HR Register and File Keeping will be collected favorably.
Rent Allowance
Two years' rent allowance of RMB 30,000-120,000 are available to the certified Software Enterprise or IC Design Enterprise residing in specified buildings according to the value of paid tax (not less than RMB 100,000). The increment is RMB 10,000 for every RMB 100,000 tax paid.
Premium for Senior Personnel
Senior mangerial or technological personnel (of bachelors degree or above, worked the enterprise for more than one year, with annual salary of RMB 150,000 or more) who works for a certified software or IC enterprise that has paid a total tax of RMB 5 million to 20 million Yuan(or above) last year shall be awarded 35%(or 50%) of whose personal income tax paid to the Tianhe Tax Bureau last year with a maximum of RMB 100,000 (150,000) Yuan as premium.
Special Funds for Industrialization Projects
An annual special fund of at least RMB 5,000,000 shall be placed to support the industrialization of scientific projects of the Software or IC Design enterprises.
5. Development of Gaotang Campus
Today, Tianhe Software Park has shifted its battle field of software industry to the Gaotang Campus. Located in the northeast part of Guangzhou city with a total planning area of 12.25 square kilometers, Gaotang is a brand new development area of Tianhe Software Park. The aim of Tianhe Software Park is to become a big-league software industry base, a high-class training base and a top-ranking software product exporting and out-sourcing base.
Gaotang is an area embraced by 3 national forest parks of Phoenix, Huolu and Baowei, two reservoirs of Lingtang and Xintang. Quiet water and beautiful mountains give an attractive view. The first construction phase of Gaotang has finished and appealed to tens of IT enterprises. The infrastructure and route network are under speedy construction. At the same time, high class commercial center, hotels and restaurants, leisure and entertainment facilities, apartments and luxury residential quarters will be built within three years as supporting establishments for the Park.
Science, humanism, green color, ecology. the Gaotang New Zone together with Guangzhou Science City, Olympic center, Village of Asian Games, the Grandview Plaza and the biggest botanic garden in South China will constitute an attractive view in the east of Guangzhou city.
In this place, investors will get favorable supports for land utilization, tax, talent introduction and so on from government. Software enterprises here will get funding supports such as technology funds, national torch program funds and different venture capitals. In this place, we have prepared for every ventruers and investors with high quality habitation for living, residing, entertainment and recreation. We will adhere to the motto of Service First, Honesty and Sincerity Supremacy to provide prompt and convenient one-stop services for our investors.
6. Contact Information:
The Administration Commission of Tianhe Software Park
Add: 1039, Gaopu Rd., Tianhe District, Guangzhou, PRC (510663)
URL: www.thstp.com. Call centre: 95100100
Facilitate Guangzhou's Dynamics to Promote All-round Development