1. Income tax "two exemptions and three reductions"
The newly established software manufacturing enterprises in China will be exempted from enterprise income tax in the first and second years from the profit-making year, and the enterprise income tax will be halved in the third to fifth years. (According to State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC)? Notice of the General Administration of Customs on Tax Policies to Encourage the Development of Software Industry and Integrated Circuit Industry (Caishui [2000] No.25), in which the Notice on the Implementation of Relevant Provisions on Preferential Income Tax Policies for Software Enterprises and High-tech Enterprises (Guoshuifa [2003] No.82) explains the "profit-making year" as follows:
The profit-making year refers to the first year after an enterprise starts to operate with taxable income. If an enterprise suffers losses in the initial stage of operation, it can carry them forward year by year to make up for them in accordance with relevant tax regulations, and the year with taxable income after making up for the losses is the profit-making year.
For software manufacturing enterprises enjoying "two exemptions and three reductions", the tax reduction and exemption year shall be calculated continuously from the profit-making year, and the period shall not be postponed due to losses.
2. Investors of domestic and foreign economic organizations who set up software product manufacturing enterprises in the western region with their profits after paying enterprise income tax in China as capital investment for a period of not less than 5 years will be refunded the enterprise income tax paid by their reinvested part according to 80%. (According to the Notice on Tax Policies to Further Encourage the Development of Software Industry and Integrated Circuit Industry (Caishui [2002] No.70))
3. Refund of VAT on demand
1) Enterprises (general VAT taxpayers) sell their own software products, and after VAT is levied at the statutory tax rate of 17%, the part with the actual VAT tax burden exceeding 3% will be refunded immediately.
The tax refund is used by enterprises to research and develop software products and expand reproduction, and is not regarded as taxable income of enterprise income tax, and enterprise income tax is not levied. (Notice on Tax Policy Issues Concerning Encouraging the Development of Software Industry and Integrated Circuit Industry (Caishui [2000] No.25))
2) The general VAT taxpayer sells imported software that has undergone localization transformation such as conversion, and the software it sells can enjoy the preferential tax policy of immediate refund according to the above relevant provisions. (According to Caishui [2000] No.25)
Among them, localization transformation refers to the redesign, improvement and transformation of imported software, not including the simple processing of imported software into Chinese characters and then selling it. The article was transferred from
3) Software products exported by enterprises themselves or sold by export enterprises are not applicable to the method of VAT refund upon collection.
4. The wages and training expenses of software production enterprises can be deducted according to the facts when calculating the taxable income. (According to Caishui [2000] No.25)
5. Exemption from customs duties and import value-added tax.
According to the document Caishui [2000] No.25, the following commodities are exempt from customs duties and import value-added tax:
1) Self-use equipment required by the software manufacturer to be identified;
2) The technology (including software), supporting parts and spare parts imported with the equipment according to the contract do not need to issue a confirmation letter and occupy the total investment;
3) It does not include the goods listed in the Catalogue of Imported Goods Not Duty Free for Foreign Investment Projects and the Catalogue of Imported Goods Not Duty Free for Domestic Investment Projects stipulated in the State Council Guofa [1997] No.37.
6. Preferential treatment of halving income tax
In the high-tech industrial development zone approved by the State Council, newly-established high-tech enterprises identified as newly-established software production enterprises can enjoy preferential tax reduction and exemption for newly-established software production enterprises. During the tax reduction period, the enterprise income tax will be levied by half, and the tax rate is15%; After the expiration of tax reduction or exemption, enterprise income tax will be levied at the rate of 15%. (Notice on Implementing Standards in Accordance with Relevant Provisions of Preferential Income Tax Policies for Software Enterprises and High-tech Enterprises (Guo Shui Fa [2003] No.82))
Please see the following suggestions on whether a registered company chooses a general taxpayer or a small-scale taxpayer:
1. Look at the scale. If the investment scale of the company is large, and the annual sales income soon exceeds 5 million yuan, it is suggested to be directly recognized as a general taxpayer. If the company's monthly sales are expected to be below 654.38+10,000 yuan, it is suggested to choose small-scale taxpayers and enjoy the VAT exemption policy from 2065.438+09. 1.00.
2. Look at the buyer. If your buyer is expected to be mainly a big customer in the future, it is very likely that he will not accept the special VAT invoice with a tax rate of 3%, so it is recommended to directly identify the general taxpayer, otherwise choose a small-scale taxpayer.
3. Look at the deduction. If the cost of your company accounts for a high proportion of the special VAT invoice, and the input tax is fully deducted, it is estimated that the VAT tax burden is less than 3% through calculation, so it is recommended to choose general taxpayers, otherwise choose small-scale taxpayers.
4. Look at the industry. If it is an industry with a tax rate of 16%, and it is a light asset industry. Generally, the tax burden of value-added tax in such industries is high, so it is recommended to choose small-scale taxpayers, otherwise choose ordinary taxpayers.
5. Look at the discount. See if your industry can sell VAT preferential policies. For example, you can enjoy the value-added tax preferential policies of software companies, and it is recommended to choose general taxpayers, otherwise choose small-scale taxpayers.