Circular of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on Issues Concerning Tax Policies for Encouraging the Development of Software and Integrated Circuit Industries
Circular of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on Issues Concerning Tax Policies for Encouraging the Development of Software and Integrated Circuit Industries
Circular of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on Issues Concerning Tax Policies for Encouraging the Development of Software and Integrated Circuit Industries
Cai Shui [2000] No.25
September 22, 2000
The finance departments (bureaus), the administrations of state taxation and administrations of local taxation of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning, Guangdong Branch of the General Administration of Customs, and all customs houses directly under the General Administration of Customs:
With a view to implementing the spirit of the Circular of the State Council on Printing and Distributing Several Policies on Encouraging the Development of Software Industry and Integrate Circuit Industry (Guo fa [2000] No.18), promoting the development of software industry and integrate circuit industry of our nation and enhancing the innovation and International competitiveness of information industry, we hereby notify issues concerning the taxation policies for encouraging the development of the software and the integrated circuit industries as follows:
Article 1 Taxation Policies on Encouraging the Development of the Software Industry
(I) From June 24, 2000 to the end of 2010, after levy of VAT on software product self-developed and self-produced by general VAT taxpayers at the legal rate of 17%, the part with the actual VAT burdens exceeding 3% may enjoy the simultaneous levy and refund policy. The refunded tax payment shall be used for research and development of software as well as production expansion and will be neither taken as taxable income nor imposed on enterprise income tax.
The exported software that is for sale after localized reconstruction from imported software by a general value-added taxpayer may enjoy preferential tax policy of simultaneous levy and refund according to relevant regulations on self-developed and self-produced software products.
Localized reconstruction refers to re-design, enhancement, alteration and the like to imported software.
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