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China Adopts New Policies to Boost IT Industry
The State Council, China's cabinet, has mapped out a series of new policies to encourage IT development and raise its creativity and competitiveness on the world market.
The policies, made public Tuesday in Beijing, consist of 13 chapters of 53 articles. Their aim is to boost the country's software and integrated circuit (IC) sectors so that China's software development and production can meet or approach world standards, with domestic-made IC basically meeting the needs of the home market.
The state welcomes venture investment in IT industry, and the stocks held by venture investment companies can be traded on the market as soon as related IT companies are listed, according to the policies.
IT companies that sell self-developed products to tax-payers in general will be levied up to 17 percent in value added tax, while newly-launched software firms will be income tax-free for the first two years they record profits; for the following three years, their income tax will be cut by half.
Investors of more than eight billion yuan can also enjoy favorable tax policies, according to the new regulations.
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