Shanghai Securities News, 11/02/11
Chinese government authorities reportedly plan to provide further tax incentives for productivity software companies, with cities such as Shanghai researching tax cuts for software firms. Speaking at the World Congress for Software Quality in Shanghai, Chen Chong, director of the China Software Industry Association, estimated China's total software industry revenue will exceed RMB 1.6 trln this year.
According to a "Notice Regarding Value-Added Tax Policy for Software Products" by China's Ministry of Finance and State Administration of Taxation that took effect on October 14, after paying value-added taxes at the standard rate of 17%, software companies will receive a refund for all taxes paid above a 3% rate.
Shao Zhiqing, deputy director of the Shanghai Municipal Economic and Information Technology Committee, said Shanghai is exploring several options for reducing software companies' tax burden.