FINANCIAL INCENTIVES Government provides supports to private sector companies in Macao through interest subsidises to their banking loans for financing the following types of investment projects: Construction of buildings Purchases or finance leases of buildings (with official utilisation permit issued after 1 January 1988); Renovation or refurbishing works of buildings (with official utilisation permit issued after 1 January 1988, or, if such renovation or refurbishing undertaken is to prevent particular dangers, no restriction on permit issuing date); Purchases or finance leases of new equipments; Purchases or finance leases of new cargo vehicles (only apply to fisheries and manufacturing industries).   Prerequisites for granting the interest subsidies to investment projects include: Contributing to diversification and modernisation of economic activities; Introducing technological innovation and transformation of enterprises, upturning production capabilities, product quality, competitiveness, and reducing environmental damages; Promoting modernisation of facilities in terms of operation, safety and health conditions.   Applicants in following industries are eligible to apply for the interest subsidies: Fisheries Manufacturing Wholesalers and commercial agencies (except motor vehicles and motorcycles) Cargo transportation Warehousing Forwarding agents and related-ancillary operators Information technology and co-related industries Other business services companies   Beneficiaries of the interest subsidies are conditional on the followings: Beneficiaries must not operate economic activities under either concession or sub-concession schemes In case of companies, beneficiaries must be duly incorporated in accordance with relevant legislative requirements Beneficiaries must have: i) duly organised accounting systems ii) compliant status in taxation iii) required permits or similar documentary evidence to undertake the concerning operations   Banking loans eligible for the interest subsidies must meet the following vetting criteria: The lending credit institutions must be duly authorised to operate in Macao territory Currency denomination of loans must be Macao Pataca (MOP) Loan amount of each application:   i) over MOP500,000 for eligible investment projects   ii) minimum of MOP100,000 for investments intended for:   - rationalisation of capabilities of production and design by innovation of computer-aided facilities - improvement of quality management systems by installation of verifying, measuring, testing and quality controlling equipments - implementation of electronic data interchange systems - enhancement of environmental workplace and safety conditions Repayment period: 2 years or more Repayment terms: repayments of principal and interest by equal consecutive instalments on quarterly, half-yearly or yearly basis   The interest subsidising rates range from 4% to 6%, with maximum subsidising period of 4 years commencing from the first repayment of loan. Interest subsidisation covers the following three categories: Grade I Basic subsidising rate of 4% Grade II Subsidising rate of 5% for investment projects of: - purchases and technological revamping of equipments and related maintenance services - purchases or finance leases of buildings (with official utilisation permit issued after 1 January 1991) - concentration of industrial facilities, or reallocation of industrial facilities to outer urban areas Grade III Subsidising rate of 6% for investment projects of: - computer-aided design and production facilities - installation of verifying, measuring, testing and quality controlling equipments - implementation of electronic data interchange systems - improvement of environmental workplace and safety conditions Interest subsidies are granted on case-by-case basis upon documentary application accompanied by all prescribed supporting documents.