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.
BEIJING, 12 July 2000 (Asia Pulse) - The policies, made public on July 11, consist of 13
chapters of 53 articles.
The 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 ICs basically meeting the needs
of the home market.
The state welcomes venture investment in the 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% 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.