What Are The Conditions For Government Subsidies?

2011/1/25 14:59:00 41

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Government Subsidy

(1) government subsidies are free and conditional.

The subsidy provided by the government to enterprises is characterized by gratuitous nature.

The government does not enjoy business.

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enterprise

Nor do we need to repay in the future by providing services or pferring assets.

government

Subsidies are usually accompanied by certain conditions, including:

1. Policy conditions.

Only eligible government subsidy policy is eligible for government subsidy.

In accordance with policy requirements, government subsidies may not always be obtained, and government subsidies can not be obtained if they do not meet policy requirements and do not have the qualification to apply for government subsidies.

II. Conditions of use.

Where an enterprise has been approved to obtain government subsidies, it shall be used in accordance with the purposes prescribed by the government.

(2) the government's capital investment does not belong to the government subsidy.

The government invested capital into the enterprise as an investor, enjoying the corresponding ownership of the enterprise, and the enterprise has the obligation to distribute profits to the investors. The relationship between the government and the enterprise is between the investor and the investor.

In the special appropriations allocated by the government such as investment subsidies, the relevant state documents as "capital reserves" are also the nature of capital input.

No matter what form the government's capital investment takes, it does not belong to the government subsidy.