These regulations are formulated in accordance with "Circular of the State Council on Printing and Distributing 'Policies for Promotion of Software and Integrated Circuit Industries'" (Guo Fa [2000] No.18), for the purpose of promoting the development of Fuzhou's software industry, enhancing the innovation capability and international competition capability of software enterprises and providing a favorable development environment for software enterprises.

1. In case software enterprises produce and sell software products, and the general tax payers of added value taxes sell their own software products, the added value taxes are collected according to the statutory tax rates of 17% from June 24, 2000 to 2010 while the practice of prompt collection and refunding shall be adopted in case the actual tax burdens in excess of 3%. By this means, the software businesses can use this part of funds for the R&D work and an expanded production. 

2. Computer software products developed by the software enterprise and registered at National Copyright Administration will only be collected with business tax and exempted from value added tax when they are sold with copyright ownership, according to provisions set forth in Cai Shui Zi [1999] No.273.  

3. Software enterprises will enjoy the favorable income tax policies as “tax exemption for two years and half tax payment for three years” starting from the year of profits. 30% of local retained portion of taxes paid by member enterprises of the software park shall be used for supporting the development of those enterprises. 

4. For incomes obtained from the transfer of software technologies and associated technical consultation, technical training and technical service required during the technology transfer, they will be temporarily exempted from the income tax if the annual net income is below RMB 300,000 (including RMB 300,000), according to provisions set forth in Cai Shui Zi [1994] No.001.

5. The salaries and training fees of the software business employees shall be listed and paid according to the actual amounts as the pre-income tax costs.

6. For software enterprises covered by the “the Catalogue of Key Industries, Products and Technologies Encouraged by the State”, the equipment imported for their own use, and the technologies (including the software) and the supporting and spare parts imported along with the said equipment according to the contracts, are exempted from the customs duties and the value-added tax for imported goods. There is an exception to the goods among the List of Imported Goods Not Exempt from Import Duties in the Domestic Investment Projects (Guo Fa [1997] No.37).
For products included in the "Catalogue of Chinese High-tech Export Products" promulgated by Ministry of Science and Technology and Ministry of Foreign Trade, if the export rebate rate fails to meet the taxation rate, such exported products may apply for tax refunds in accordance with the taxation rate and existing administrative regulations for export rebates, upon approval the competent taxation authority at the end of the year.  

7. Software enterprises with registered capital no less than RMB 2 million and products for exportation can apply for the registration of independent import and export right according to relevant regulations of the department for foreign trade and economic cooperation, and are also allowed to broaden their business scopes, including agency exportation of products transferred to other enterprises. 

8. Good measures shall be taken to introduce high-level software talents and encourage returned overseas Chinese students to start up business in the software park. Returned overseas Chinese students will be exempted from personal income tax according to provisions set forth in Min Cai [2000] No.156, if they are engaged in software technology research or have their scientific and technological achievements be priced and converted to shares or capital contributions. For those who have been granted the right of permanent residence in overseas countries, their personal income taxes will be deducted through the approach of grossed-up.  　　

9. Take efforts to build up various high-level talent training posts. Specialized technical personnel of member software enterprises enjoy the priority of being recommended to register for the examination to enter postgraduate training posts launched by high learning institutes in the software park. In case a software enterprise establishes a circulating post-doctoral post, it can apply for fund support for the research project.   

10. Apartments constructed by the software park industry base can be sold or rented to excellent technical personnel of member software enterprises at a preferential price.  

11. Member enterprises can, through the competent municipal department of science and technology, apply for fund support to the national or provincial innovation fund for software projects.  

12. Member software enterprises are allowed to extract further technical development funds in accordance with provisions set forth in "Guo Shui Fa [1996] No.152". For a profit-making enterprise with general R&D expenses on new product, new technology and new process of this year exceeding 10% of that of last year (including 10%), besides getting actual expenses listed and paid in accordance with rules, the enterprise may further have its 50% of actual expenses to offset taxes payable of the current year.  

13. The software purchased by the enterprises and the institutions, once the purchasing costs reach the fixed assets standard or constitute the intangible assets, shall be calculated according to the fixed or intangible assets and has the periods of depreciation and amortization shortened even to two years as long as approved by the departments of taxation. The competent taxation department shall then report to State Administration of Taxation for further approval. 

14. Member software enterprises applying for various technology programs may apply for three kinds of funds for supporting scientific and technical projects, as well as supports of venture and guaranty funds.

15. Priorities shall be offered to member software enterprises with scientific management, favorable performance and qualification for listing to get listed in the securities market.  

16. Agency services shall be provided for incoming software enterprises. After incoming enterprises have provided necessary documents, the management committee of the software park shall handle related procedures for those enterprises for free (exclusive of necessary charges specified in related regulations).  

17. The technology park shall positively help software enterprises to carry out import and export businesses, and shall share the preferential treatment of export subsidy with export enterprises when it is commissioned to export software products. 

18. Member software enterprises may lease the production house, research office and standard software & hardware facilities constructed by the software base at a favorable price.  

19. If staffs of member software enterprises need to go abroad for business, the application shall be submitted to the competent authority by the management committee of the technology park. The foreign affairs department shall give priority to related procedures if they meet corresponding regulations for simplifying the approval process for business and economic personnel.  

20. Strong measures shall be taken to protect legitimate rights and interests of software enterprises, implement associated rules and regulations for protecting the intellectual property rights of software and punishing software piracy, so as to ensure fair market competition.   

21. Besides enjoying favorable policies provided by these regulations, member software enterprises may also enjoy preferential policies set forth in “Regulations of Fuzhou Municipal People's Government for Supporting the Construction of Fuzhou Software Park” (Rong Zheng Zong [1998] No.177) and “Regulations of CPC Fuzhou Municipal Committee and Fuzhou Municipal People’s Government on Supporting the Development of High-tech Industries” (Rong Wei [1999] No.28).

22. The determination of software enterprises shall be performed in accordance with related state rules.