Preferential policies for foreign investment in software industry

Policy on Business Tax

1. Except the sale revenue of software enterprise from which value-added tax should be levied; the income from technology transfer with appropriate conditions and procedures, technology development business, consulting business related with technology development, technology service business shall be exempted from business tax; urban maintenance and construction tax, Surtax for Education and (local) education supplementary tax.

2. For the private scientific and technical enterprise, income from technology transfer shall be exempted from business tax, according to the approval papers issued by local tax bureaus.

3. As to entity or individual (including foreign-funded enterprises, foreign-funded research center, foreign enterprises and foreigners), the income from technology transfer, technology development business, consulting business related with technology development, technology service business shall be exempt from business tax.

Policy on Personal Income tax

1. Income from the hi-tech and software projects in the hi-tech and software enterprises as well as the shares distributed and issued to individuals, shall be reutilized in the production and management system and be exempted from the personal income tax. 

2. The salaries of returned overseas students who are engaged in accredited transformation projects with new and high-tech achievements may enjoy the additional deduction of the cost, according to the stipulations concerning personal income tax.

3. The salaries of technicians is based on the directions of the enterprises, which are engaged in the technique development, technique transfer, consulting business as well as the relevant technique transfer and technique service. The personal income tax shall be levied according to the remuneration for providing services.

Policy of Attracting Talents

1. Long-term effective “temporary residential card” will be issued to overseas Chinese who work with their spouses and underage children; they will be exempted from the city environmental fee. If their children enter school or kindergarten, they can enjoy the same treatment as the normal residents in Wuxi, and they can also enjoy related treatment described in “Regulations for encouraging overseas Chinese to work in Wuxi”.

2. Special funds established by related departments of the state, the province and the city will be provided for enterprises every year. Enterprises can also get support from VC firms.

3. Enterprises can enjoy preferential treatment in buying or renting office buildings. Employees of the enterprises can get preferential treatment in buying excellent residential buildings.

*This English version is only for reference. To learn more, please refer to the authoritative Chinese version.