2. For enterprises (including foreign-invested enterprises and foreign enterprises) that introduce advanced technologies listed in the National Catalogue of High-tech Products, the software fees paid overseas according to the provisions of the contract shall be exempted from customs duties and import value-added tax.
3. The total wages actually paid by software development enterprises are allowed to be deducted when calculating the taxable income.
4. Small-scale taxpayers belonging to production enterprises, who produce and sell computer software, pay VAT at the rate of 6%; Small-scale taxpayers belonging to commercial enterprises can calculate and pay VAT at the rate of 4% for selling computer software, and the tax authorities can issue VAT invoices on their behalf at different rates.
Excerpt from "The Ministry of Finance and State Taxation Administration of The People's Republic of China on Implementing <; Decision of Central the State Council on Strengthening Technological Innovation, Developing High-tech and Realizing Industrialization > Notice on Tax Issues (Caishuizi [1999] No.273)
5. From 1 month/day, 2006, newly established high-tech enterprises in the National High-tech Industrial Development Zone will be exempted from enterprise income tax for two years from the profit-making year, and income tax will be levied at a reduced rate of 1 5% after the tax exemption expires.
Excerpted from the Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Preferential Policies for Enterprise Income Tax on Enterprise Technological Innovation (Caishui [2006] No.88).
6. Foreign-invested enterprises established in the National High-tech Industrial Development Zone in the State Council and recognized as high-tech enterprises shall pay enterprise income tax at the reduced rate of 15% from the tax year when they are recognized as high-tech enterprises or new-tech enterprises.
7. For productive foreign-invested enterprises recognized as high-tech enterprises, whose production and operation period is more than 10, the income tax can be exempted from the first and second years from the profit-making year, and the income tax will be reduced by half in the third to fifth years.
Excerpted from the Notice of State Taxation Administration of The People's Republic of China on How to Apply Preferential Tax Policies to High-tech Enterprises (Guo Shui Fa [1994] 15 1No.)
8. Starting from 200 1 year/month 1 day, enterprises in software development, integrated circuits and other industries can deduct the advertising expenses within the proportion of 8% of sales (business) income in each tax year, and the advertising expenses exceeding the proportion can be carried forward to future tax years indefinitely.
9, engaged in software development, integrated circuit manufacturing and other business of high-tech enterprises, Internet sites, venture capital enterprises engaged in high-tech venture capital, within five tax years from the date of registration, audited by the competent tax authorities, advertising expenses can be deducted according to the facts.
Excerpted from the Notice of State Taxation Administration of The People's Republic of China on Adjusting the Pre-tax Deduction Standard of Advertising Expenses in Some Industries (Guo Shui Fa [2001] No.89).
10. From June 24, 2000 to the end of 20 10, the general VAT taxpayers will sell their own software products, and after the VAT is levied at the statutory tax rate of 17%, the part whose actual VAT tax burden exceeds 3% will be refunded immediately. The tax refund is used by the enterprise to research and develop software products and expand reproduction, and is not regarded as taxable income of enterprise income tax, and enterprise income tax is not levied.
1 1. After the newly established software manufacturing enterprises in China are recognized, the enterprise income tax will be exempted in the first and second years from the profit-making year, and the enterprise income tax will be reduced by half in the third to fifth years.
12. The enterprise income tax will be levied at the reduced rate of 10% for the key software production enterprises within the national planning and layout, if they did not enjoy the tax exemption in that year.
13. Wages and training expenses of software production enterprises can be deducted when calculating taxable income according to the actual amount.
14, enterprises and institutions purchase software, where the purchase cost reaches the standard of fixed assets or constitutes intangible assets, it can be accounted for according to fixed assets or intangible assets, and domestic-funded enterprises are approved by the competent tax authorities; Foreign-invested enterprises with an investment of more than US$ 30 million shall be reported to State Taxation Administration of The People's Republic of China for approval; With the approval of the competent tax authorities, the depreciation or amortization period of foreign-invested enterprises with an investment of less than US$ 30 million may be appropriately shortened, with a minimum of two years.
15, integrated circuit manufacturers with an investment of more than 8 billion yuan or an integrated circuit line width of less than 0.25um can enjoy the following preferential tax policies:
(1) It shall be implemented according to the preferential tax policies to encourage foreign investment in energy and transportation.
(2) The import of productive raw materials and consumables for self-use shall be exempted from customs duties and import value-added tax.
Excerpted from the Notice of the Ministry of Finance, State Taxation Administration of The People's Republic of China and the General Administration of Customs on Tax Policy Issues Concerning Encouraging the Development of Software Industry and Integrated Circuit Industry (Caishui [2000] No.25).
16. For the manufacturers of integrated circuit products whose production line width is less than 0.8 micron (inclusive), the policy of "two exemptions and three reductions in corporate income tax" will be implemented from the profit-making year, that is, from the profit-making year, the corporate income tax will be exempted in the first and second years, and the corporate income tax will be reduced by half in the third to fifth years.
17, from 2002 1 month 1 day to the end of 20 10, investors in integrated circuit manufacturing enterprises and packaging enterprises will directly invest their profits after paying enterprise income tax in this enterprise to increase their registered capital, or start other integrated circuit manufacturing enterprises and packaging enterprises as capital investment. From 2002 1 month 1 day to the end of 20 10, if domestic and foreign economic organizations, as investors, use their profits after paying enterprise income tax as capital investment to set up integrated circuit manufacturing enterprises, packaging enterprises or software product manufacturing enterprises in the western region, and the operating period is not less than 5 years, the reinvested part will be refunded at the rate of 80%.