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Interim Measures for Special Funds Administration for Xi'an Software and service Outsourcing Industry Development

2014-12-31 16:30:21

Article I. According to “Budget Law” and “enterprise financial rules” and The “Circular on the Issuance of Interim Measures on the Management of Xi'an Municipal Special Funds from Xi'an Municipal People's Government” (Municipal Fat [2007] No. 161), and combined with the factual situation in our city, this measures was formulated to carefully implement the spirit of “Circular on the Implementation of ‘Thousand-hundred-ten' Project from the Ministry of Commerce (Commercial UNCDF [2006] No. 556), the “Suggestion on Accelerating Software and Service Outsourcing Industry Development” from Municipal Committee and Municipal Government (Municipal Fat [2007] No. 7) and the “Suggestion on Accelerating Training Personnel for Software and Service Outsourcing Industry from Xi'an People's Government” (Municipal Fat [2007] No. 108), to thoroughly carry out the “Agreement on Together Building Service Outsourcing Bases City in China” co-signed by municipal government, the Ministry of Commerce, Ministry of Information Industry and the Ministry of Science and technology and promote the rapid and healthy development of the city's software services outsourcing industry.


Article II. The special funds for Xi'an software services outsourcing industry development (hereinafter referred to as special funds) referred to in this measures means the special funds that are arranged by the municipal financial departments and development zones respectively, and use to support and guide building Xi'an into China's service outsourcing base city with a certain international Competitiveness.

Chapter II. Use principles

Article III. the principles of being open, fair, equitable. According to the “Suggestion on Accelerating Software and Service Outsourcing Industry Development” from municipal Committee and municipal government, all the enterprises and training institutes with registration and tax address within Xi'an popedom, if complying with relevant conditions might be supported with the special funds regardless of their Ownerships.
Article IV. the principle of supporting the superior and the stronger. The financial resources should be given fully play to support the superior service outsourcing enterprises playing a leading role in city's economic development and industrial optimization to become bigger and stronger and actively cultivate leading service outsourcing enterprises. The service outsourcing enterprises with advanced management concept, standard management and developing potential should be supported preferentially in their development.
Article V. The principles of giving scientific management strengthen supervision appropriate value for the special funds. The municipal foreign trade bureau, municipal personnel bureau and the municipal finance bureau should look though the projects together and disburse the special funds and monitor its use.
Article VI. The principles of government guidance and market-oriented operation. Government, parks, enterprises, colleges and training institutions should act jointly and cooperate with each other to make the service outsourcing industry in Xi'an bigger and stronger.

Chapter III. Raising and using about the funds

Article VII. according to the spirit of “Suggestion on Accelerating the Development of Software and Service Outsourcing Industry from Xi'an Municipal People's Government under CPC Xi'an Municipal Committee” and relevant Municipal government executive meeting, 80 million RMB should be arranged in Xi'an as the special funds to promote the development of software and service outsourcing industries. Municipal finance bureau should arrange 40 million RMB to the existing technology R&D funds (three kinds of technology fees), special funds for the development of high-tech industry, special funds for the development of export-oriented economy, budget arrangement, and 30 million RMB to High-tech Zone and 10 million RMB to the Economic and Technological Development Zone, which are totally 80 million RMB to compose the special funds for the development of software and service outsourcing industries in Xi'an.
Article VIII. These special funds should provide subsidies and awards to the following aspects according to the integrated funds category.
1. The special funds used to support the development of software industry should be drawn from the science and technology R & D funds (no less than 6 million RMB in annual arrangement) and the special funds for the development of high technologies (no less than 12 million RMB in annual arrangement) arranged in the budget. Relevant departments should mainly support the technological innovation and achievement conversion in software enterprises; and to establish the information security systems for outsourcing enterprises and intellectual property protection.
2. The awards use to support the export of software and service outsourcing should be drawn from the special funds for the development of external-oriented economy (no less than 2 million RMB in annual arrangement). The government should support enterprises to take initiative to undertake international (offshore) outsourcing business to expand exports of software and services outsourcing.
3. The subsidy funds used to support service and outsourcing personnel training, Public Service Platform subsidy, international market-expansion and international certification should be drawn from the special funds for the development of service outsourcing industries arranged in the financial budget. Of which:
The subsidy funds used to support service outsourcing personnel training and the bases building should be implemented according to the “Xi'an Detailed Regulations on the Financial Support to Encourage Service Outsourcing Personnel Training” (Annex 1)
The subsidy funds used to support the establishment of service outsourcing information public service platform international market expansion and international certification should be drawn according to the “Xi'an Detailed Regulations on the Financial Support for Undertaking Offshore Service Outsourcing Business” (Annex 2), should mainly support and encourage service outsourcing enterprises to carry out activities to promote investment and publicize brands in international market; the international certification or upgrading certification of service outsourcing enterprises; fostering and strengthening brand-name enterprises of service outsourcing; as well as the expanding of international market, etc. Among them, the projects in line with the national or provincial subsidy conditions on the international market expansion should be given priority to apply for the national and provincial subsidies. 
4. The projects about service outsourcing and personnel training in high-tech zone or the economic and technological development zone should be supported from the annual 30 million RMB and annual 10 million RMB arranged for high-tech zone and economic and technological development zone respectively. Relevant departments should Focus on the entering subsidy funds and venue costs subsidies to the domestic and foreign well-known and powerful service outsourcing enterprises; and the various funds supports and subsidies for the achievements conversion of Scientific and technological innovation, international market expansion, personnel training as well as the public platform construction of kinds of service outsourcing enterprises in the parks. The enterprise or project that has enjoyed two financial support items for service outsourcing industry development in same year can not repeatedly enjoy the relevant financial support for service outsourcing industries arranged by the municipal finance departments. Development zones should provide the plan for the use of the special funds at the beginning of every year and implement it after the censorship of the municipal leading group for the service outsourcing industries.
Article IX. Department linkage mechanism should be established for the special funds. When carry out the collection, application and Accreditation about the funds every year, the management Committees of high-tech zone and the economic and technological development zone, municipal technology and science bureau, municipal Information Office, the Municipal Personnel Bureau, and Municipal Foreign Economic and Trade Bureau and other leading departments to the special funds should send the relevant materials and work information timely. The subsidy projects belonged to the offshore service outsourcing projects should be reported to the leading group of service outsourcing bases for review, and the projects belonged to the support projects of service outsourcing personnel training should be reported to the personnel leading group of the software and service outsourcing industry for review.
When the uses of the annual funds are completed at the year end, they should report to the two leading groups timely about the use condition of their charged funds. The subsidy projects belonged to the offshore service outsourcing projects should be reported to the leading group of service outsourcing bases, and the projects belonged to the support projects of service outsourcing personnel training should be reported to the personnel leading group of the software and service outsourcing industry.

Chapter IV. Support manner

Article X. a certain funds should be arranged as the subsidies for developing investment promotion activities of service outsourcing. Relevant departments should support the holding of the international meeting about service sourcing industry and other relevant meetings, forums and exhibitions, actively develop a wide range of brand promotion activities and expand investments with target to create the brand of “Xi'an--the Service Outsourcing Capital of China”
Article XI. The service enterprises established by well-known domestic or foreign companies with an operating length of more than 3 years and the total investment of more than one million U.S. dollars will be provided 100-500 thousand RMB as Rent subsidies or Purchase subsidies
Article XII. Actively participate in the construction of China's service outsourcing information platform, and arrange a certain funds to build and maintain the portal web for Xi'an service outsourcing industries every year.
Article XIII. Software and service outsourcing enterprises should be encouraged to develop offshore outsourcing business vigorously. After comprehensively evaluation, The top 20 enterprises with annual export value exceeding 500 thousand U.S. dollars or with the annual growth exceeding 100%, will be identified as the “Xi'an Outstanding Enterprise in Service Outsourcing Industry” and will be granted an one-time 50-200 thousand RMB as support award annually.
Article XIV. The service outsourcing enterprises should be supported to expand international market actively and take part in domestic and international professional exhibition and investment promotion activities. The Eligible service outsourcing enterprises should be provided subsidies at the amount of no more than 70% of their cost for every international market expansion activity to undertake offshore outsourcing business and no more than 50 thousand RMB per household.
Article XV. Software and service outsourcing enterprises should be provided subsidies for the cost of leasing International line and video conferencing line, at the amount of no more than 30% of the actual cost after censorship combining with the whole condition of the special funds use in the year and no more than 100 thousand RMB per enterprise with the period for two years.
Article XVI. Service outsourcing enterprises should be supported to gain the Capability Maturity Model Integration (CMMI) certification, the Capability Maturity Model (CMM) certification, People Capability Maturity Model (PCMM) certification, information security management (ISO27001/BS7799) certification, IT Service Management (ISO20000) certification and the Service providers, environmental safety (SAS70) certification, etc.
The service outsourcing enterprises gained the above-mentioned certifications should be provided subsidies for their actual costs which should be implemented according to the relevant regulations in “Xi'an Regulations on Financial Support for Encouraging Undertaking Offshore Service Outsourcing Business” (Annex 2). The identified projects that have enjoyed fund subsidies by the country or Shaanxi province should not be subsidized repeatedly.
Article XVII. Brand strategy should be carries out to cultivate and strengthen brand-name enterprises of service outsourcing industries and encourage enterprises to implement mergers and acquisitions. The service outsourcing enterprises that created and owned their own brand name should be rewarded according to the Incentive policies of brand strategy.
Article XVIII. Service outsourcing enterprises can apply for Xi'an Science and Technology R & D funds and the special funds for the development of high-tech industry for their high-tech achievement transformation and self-innovation.
Article XIX. The “Thousand-hundred-ten project” personnel training should be promoted in service outsourcing industry vigorously. Special funds should be given overall arrangement and mainly used as the subsidies for the service outsourcing personnel training in the training institutions outside parks and the training bases construction, and relevant departments should manage and use the funds for service outsourcing personnel training and development according to the “Interim Measures on the Special Funds Use for Personnel Training in Business Fields” (Business Finance Fat [2006] No. 281) made by the Ministry of Commerce and the Ministry of Finance, “Suggestion on Accelerating Training Personnel for Software and Service Outsourcing Industry” (Municipal Fat [2007] No. 108) made by the municipal government, and “Xi'an Detailed Regulations on the Financial Support to Encourage Service Outsourcing Personnel Training” (Annex 1).
Article XX. The Intellectual Property Rights Projects in the service outsourcing business that gained significant social and economic benefits should be ranked in the scope of government incentives. The enterprises with service outsourcing IPRs increased and approved more than 30 items should be rewarded a one-time award at the amount of 50 thousand RMB.
Article XXI. A group of development zones and University Parks with service outsourcing base and growth potential should be identified as “National Service Outsourcing Demonstration Zone in Base City”. A certain funds should be arranged annually to support construction of the public service platform for Technical support in demonstration zones as well as the infrastructure construction such as the reforms of power systems, networks, systems, etc., and to improve the industrial development environment.
Article XXII. Parks, enterprises, and training institutions should be supported to strive for the Policy support and financial support from provincial departments. Meanwhile, according to the requirements of the “building agreement” and the relevant policies from state ministries and commissions, the projects or units gained the national support funds for service outsourcing industries should be provided corresponding support by the municipal departments and parks according to the administration grade.
Article XXIII. The special funds should be used to support other service outsourcing support projects identified by municipal government, the leading group for service outsourcing industry, the leading group for software and service outsourcing personnel.

Chapter V. the scope of the subsidies and reward, the eligibility criteria, and application procedures

Article XXIII. The scope of the subsidies and reward and the eligibility criteria
(A) The scope of the subsidies and reward
The service outsourcing enterprises or training institutions Registered in Xi'an area and with tax relations in Xi'an
(B) Eligibility criteria
1. The identified service outsourcing enterprises, with annual revenues of the offshore service outsourcing business accounted for more than 70% of total revenue, and whose ultimate serving targets are foreign contract providers and with long-term contracts signed.
2. The identified training institutions, means the institutions that was identified by the charge department of Xi'an service outsourcing personnel training, meet the conditions required by the training, such as venues, facilities, professional textbooks and Faculty, etc. and have experiences of providing customized training for service outsourcing enterprises.
3. Applicant must have an independent legal personality, with standard management, sound financial management system and accounting system, have no violations of law in financial management, tax management, foreign exchange management, customs management in the last two years, and have no malicious default to National governmental funds.
4. The applying enterprises and institutions should submit the relevant statistical reports on time according to the requirements of “service outsourcing business management system” made by the Ministry of Commerce.
Article XXIV. The procedures for application, censorship and funds disbursement
(A) Application procedures
The eligible applying units should provided necessary materials:
1. Project funding application form and Project Award Application Form;
2. The contract signed by service outsourcing enterprises and the contract provider and the export certificate (customs certificates, approval of outer administration, bank revenue bill);
3. The service outsourcing enterprises should provide certification or upgrade certificates, certification contract, cost details and the Proof of payment of foreign exchange issued by the Administration of Foreign Exchange;
4. The training institutions should provide the copies of relevant certification, training programs, curricula, fees list, and name list of trainers, competency certificate issued to students after examination, academic qualifications, tuition invoices and labor contract for two or more years;
5. The participants notice (invitation) of the international market expansion, proof of relevant costs, conference situation and the key performance situation;
6. The copies of business license, tax registration and other relevant licenses of the applying units;
7. Other necessary relevant information.
(B) The auditing procedure
The application materials according to the project classification should be submitted to the Bureau of foreign trade and economic cooperation of Xi'an Municipality, the Municipal Personnel Bureau and other charge departments as well as the municipal finance bureau for auditing before every April 15th. After receiving the suggestions from the Bureau of foreign trade and economic cooperation of Xi'an Municipality, Municipal Personnel Bureau and municipal finance bureau, the projects classified as support project being encouraged to undertake offshore service outsourcing business should be reported to the municipal leading group of service outsourcing base city for decision, and the projects classified as the support project for service outsourcing personnel training should be firstly examined by the leading group for software and service outsourcing personnel and then reported to the office of the municipal leading group of service outsourcing base city for record.
(C) Disbursement of funds
Bureau of foreign trade and economic cooperation of Xi'an Municipality, the Municipal Personnel Bureau and other charge departments together with the municipal finance bureau should preside over the collecting and auditing of their charged projects during the whole process. Within the budget amount, the municipal finance bureau should allocate the municipal funds directly to the project units according to the funds use scheme and the allocation list. In principle, this matter is accepted perennially, the funds are allocated once a year, and the enterprises or institutions should pay themselves and be subsidized later.

Chapter VI. Supervision and inspection and performance evaluation to the funds

Article XXV. The project units should manage the received special funds according to the relevant national Accounting regulations, fiscal laws and relevant provisions of current financial system strictly. The fixed assets purchased with the special funds must be brought into the fixed asset of the units for management according to relevant approach for Asset management.
Article XXVI. Enterprises and institutions applying for various incentive funds should provide the application materials accurately and Faithfully, those who make fraud in the application materials should be treated according to “penalties Regulations for Financial violations” and disqualified to apply for the special funds for the development of service outsourcing industry in the next three years, and the subsidies should be recovered entirely.
Article XXVII. The project subsidies should not withheld, occupied and misappropriated by any departments and units for any reason. The municipal finance bureau, bureau of foreign trade and economic cooperation of Xi'an municipality and municipal personnel bureau should adhere to the principle of being open and justice, carry out supervision and inspection duties seriously, and give  serious scrutiny according to this measure.
Article XXVIII. The performance evaluation system of the special funds should be established. The municipal finance bureau together with other charge departments should carry out track management to the projects regularly or irregularly to see the practical effects after the projects implementation, and give inspection and evaluation to the use performance of the special funds to ensure the its rational and effective use.

Chapter VII. Supplementary Provisions

Article XXIX. Service outsourcing enterprises or units eligible to this measure can give a merit-based selection to the policies made by the state, Shaanxi province, Xi'an or demonstration zones and can not have repeated enjoyment.
Article XXX. The finance bureau of Xi'an municipality and the bureau of foreign trade and economic cooperation of Xi'an municipality are responsible for the interpretation and amendment of this measure.