Software and integrated circuits get preferential

In order to encourage the development of the software industry and the integrated circuit industry, the State Council regular meeting of the People's Republic of China adopted relevant policy measures on Wednesday to provide investment financing and tax incentives for these industries.

The relevant policy measures include investment in the central budget to support qualified IC companies' technological advancement and technological transformation projects; encouraging and supporting companies to reorganize mergers and acquisitions across regions, and strengthen industrial resource integration.

“Efforts have been made to establish equity or venture capital funds and actively promote the use of intangible assets such as intellectual property to carry out loan pledges and expand the financing channels of enterprises,” the meeting said.

At the same time, tax concessions will continue to be implemented, including preferential policies for value-added tax on software products, and business tax and income tax concessions will be granted to eligible companies.

According to the current regulations, from June 24, 2000 until the end of 2010, VAT general taxpayers selling software products developed and produced by themselves will be subject to VAT on the basis of a 17% statutory tax rate. More than 3% of the part of the implementation of the rebate policy.

The software industry and integrated circuit industry is one of the strategic emerging industries identified by China. Compared with the international advanced level, its development foundation is still weak. The enterprise's technological innovation and self-development ability is not strong, and the level of application and development needs to be improved.

The executive meeting of the State Council also mentioned that it will strictly implement the intellectual property protection system for software and integrated circuits to combat all types of infringement; guide enterprises and the public to use genuine software, and support enterprises to apply for intellectual property abroad in accordance with the law.

According to the data released by the China Copyright Protection Center, during the “Eleventh Five-Year Plan” period, the average annual growth rate of software copyright registrations in China reached 37%, from 21,495 in 2006 to 81,966 in 2010. The year has reached more than 240,000 pieces.