Ministry of Industry and Information Technology: New draft of the software industry has been reported to the State Council

Yesterday, Li Yizhong, Minister of Industry and Information Technology, revealed at the 14th China International Software Expo in Beijing that the Ministry of Industry and Information Technology is studying and has come up with a draft policy report to the State Council to promote the introduction of policies to further encourage the development of the software industry.

Li Yizhong stated that it is necessary to speed up the formulation of guidance opinions and further improve the system for the identification of software companies and registration of software products. He also said that the National Development and Reform Commission and the Ministry of Finance also expressed support for this.

According to the report, thanks to the "Policies for Encouraging the Development of the Software Industry and Integrated Circuit Industry" issued in 2000 (referred to in the industry as "Document No. 18"), China's software service industry reported revenue of 997 billion yuan in 2009, close to one trillion yuan. Yuan is 16 times that of 2000; in 2009 software exports were 19.6 billion U.S. dollars, which is 49 times that of 2000.

According to the "Document No. 18", VAT general taxpayers selling software products developed and produced by themselves will be subject to a statutory tax rate of 17% before 2010, and those that exceed 3% of the actual tax revenue will be refunded immediately. However, this preferential policy will be partially suspended by the end of this year.

Relevant experts believe that the New Deal of the software industry will be introduced within the year this year, and the preferential rate of tax revenue should continue or even exceed the support of “Document 18”.