How Preferential Policies on Tax Be Applied to Software Enterprise and High & New Tech Enterprise Through Certification

Author: Zhong Yi, attorney at law; Michael Ni; [Shanghai Runhe Law Firm]

To promote the development of high and new tech enterprises in the national software industry and integrated circuit industry, our country has enacted a series of law and regulations to encourage and aided them to grow robustly. Such enterprises gains benefits on tax in accordance with relevant laws and regulations after they have been certified or applied related registration. This article takes software enterprise as example to summarize the vectors of application of certification and benificiary on tax:

NOTE:

1. Enterprise Who Enjoys the Software Copyright

Enterprise who enjoys software copyright can apply for double certification of software conventionally. That means the enterprise first apply for software copyright registration and then apply for the certification of software product and sofware enterprise. After certification, if it is necessary, the enterprise may apply for certification of high and new tech enterprise.

2. Enterprise Who Does Not Enjoys the Software Copyright

1) gain right through exclusive license of the software and the term of license generally is 5 years. After gaining the license, the enterprise may apply for the certification of high and new tech enterprise, while it can not apply for the certification of software enterprise.

2) may get authorization of the localization of source code and industrial development through software license contract. An enterprise may apply for software copyright registration concerning its developped applicational fruit and may apply for software product and software enterprise certifications or high and new tech enterprise certification if meeting the requirements.

3) may choose appropriate high and new tech zone or software zone, within which to get the enterprise registered and enjoy relevant preferential policies on tax.

Generally speaking:

1) enterprise who gets the certification of software enterprise may enjoy more preferential policies than that gets the certification of high and new tech enterprise; the enterprise who gets both the certifications of software enterprise and high and tech enterprise may enjoy more preferential policies than those who only get either of the certifications.

2) software enterprise generally applys for software copyright registration at the first place and then applys for the certifications of software product and software enterprise (double certifications of software). Finally it needs to consider whether to apply for high and new tech enterprise or not.

Relevant Articles:

Software Copyright Registration

Software Product Registration

Software Enterprises Certification

Applying for the Certification of Communication Information Network System Integration Enterprise

Summary of Provisions Concerning Software, Software Products and Software Enterprise

Certification for High and New Tech Enterprise

Summary of Provisions Concerning Certification for High and New Tech Enterprise

Note: the above materials are edited by G·IPRs in April of 2009, which are only for your reference; detailed regulations shall refer to effective laws, regulations and policies when applying.