BEIJING, May 15 (Xinhua) -- China's preferential business income tax (BIT) policies for software sector have been researched over and passed at an executive meeting of the State Council, the Chinese cabinet, reported Economic Daily Wednesday.
Qualified software firms can continue to enjoy the 2-year exemption of BIT and 3-year long halved BIT rate policies in 2018, with the first year with taxable income above zero as the starting year of the preferential period, the newspaper quoted Li Guanyu, vice head of the information and software service department of China's Ministry of Industry and Information Technology (MIIT) as saying.
In 2019 and years above, software enterprises will continue to be allowed to enjoy the aforementioned preferential policies, according to Li.
The report said the extended policies targeted further sharpening competitiveness of China’s software industry via speeding sector innovation.
Software industry is the soul of information technology and the key supports for building a strong manufacturing and network powerhouse, said Xie Shaofeng, head of the information and software service department of MIIT.
Statistics showed China's software sector pocketed 6.3 trillion yuan of business incomes last year, up 14.2 percent year on year and generated in total 807.9 billion yuan of profit, up 9.7 percent year on year, with overall corporate profitability up stably.
In the first quarter of this year, software industry earned 1.4755 trillion yuan of business incomes, up 14.4 percent year on year.
Software sector R&D intensity reached 10.4 percent, with registered number of software copyrights exceeded 1.10 million. (Edited by Duan Jing, [email protected])