What sort of preferential policies can foreign investors in software and integrated circuit industry enjoy?
Developing and manufacturing software products in China is encouraged by the State. If, before the year 2010, normal Value Added Tax (VAT) taxpayers who sell self-developed and self-produced software goods pay BAT on the basis of legal tax rate of 17%, then the part of tax paid by over 3% rate may be refunded for R&D and reproduction on an extended scale of software enterprises. The newly set up software enterprises which are verified by the relevant competent department shall, form the year beginning to make profit, be exempt form income tax in the first and second years and allowed from a fifty percent reduction of income tax from the third to fifth years. Except goods listed in Catalogue For Equipment Imported By Foreign Invested Enterprises Not Enjoying Tax Exemption, the Customs Duties and VAT on importing equipment may be exempt if the equipment, technology (including software), accessories and parts imported together with the equipment of software enterprises are imported for se
