"Pre-tax Reduction and Exemption"
to Promote Technological Development
of SIP Domestic Enterprises
SIP Local Taxation Bureau is doing everything possible to implement the preferential polices concerning software industry, and effectively reduces development cost and enhances the growth momentum of enterprises. Since 2005, the Bureau has adopted the policy of reduction and exemption of business tax prior to taxation, instead of the previous "taxation before rebate", so that the working capital is put to more effective use in strengthening the enterprises. In 2005, domestic enterprises in SIP realized 141 technological transfers, from which an avenue of 33.8894 million RMB was reaped, and a total business tax of 1.6945 million RMB was exempted or reduced. In 2006, the technical increased to 165, or by 17.2%, and revenue therein amounted to 56.1069 million RMB, an increase by 65.55%, for which tax reduction and exemption amounted to 2.8053 million RMB. With the support of preferential policies of taxation, the domestic enterprises in SIP are steadily raising capabilities of technological development and market expansion, with greater potentials for added values of projects.
Feb. 27, 2007