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SOME LAWS AND REGULATIONS

Policy Provisions on Encouraging the Development of
Software Industry and Integrated Circuit Industry of Shanghai Municipality

(Published and enacted on December 4, 2000)

 

Chapter I General Provisions

Article 1 In order to quicken the development of software industry and integrated circuit industry of Shanghai and pursuant to policies on Encouraging the Development of Software Industry and Integrated Circuit Industry published and promulgated by the State Council( State Council Issue No.18, hereinafter called “ Policies”), Shanghai Municipality People's Government, taking into consideration the practical conditions of Shanghai Municipality, formulated its present policy Provisions.

Article 2 According to the provisions promulgated by the State council and its relevant Ministries and Commissions, the authenticated software enterprises and integrated circuit enterprises are entitled to enjoy this Policy Provisions, besides the related policies on encouraging the development of hi-tech industry promulgated by the State and Shanghai Municipality .

Article 3 The authenticating organization and procedures shall be determined accordance with relevant provisions by Shanghai Municipal Information office, jointly with Shanghai Municipal Planning Commission, Shanghai Municipal Economic Commission, Shanghai Municipal Science & Technology Commission, Shanghai Municipal Foreign Economic Relations and Trade commission, Shanghai Municipal economic relations and Trade Commission, Shanghai Municipal Education Commission, Shanghai Municipal Financial Bureau and Shanghai Municipal Administration of Quality & Technical Supervision.

Chapter II Software Industry

Article 4 RMB0.S billion of specific funds will be allocated by shanghai Municipal Government to support the infrastructure construction of software industry. Important software projects and the conversion and industrialization of software technologies and the relevant State projects will be provided with match funds.

Of the above-mentioned funds, risk investment seed money will be specifically established to set up, with various pioneering funds, investment companies, Listed companies at home and abroad, risk investment organization that co-invest in software industry.

Article 5 Shanghai Municipal Economic Commission, Shanghai Municipal

Science & Technology Commission, Shanghai Municipal Information Office and the People's Government of the districts and counties shall annually at least 25% of the science and technologic development funds to which they are entitled to support the research and development of such basic software and general software as operating system, large-scale database, network platform, developing platform, information security, cut- in system and large scare application software system.

Article 6 The risk investment organizations Set up by Shanghai Municipal Government and its relevant departments shall strengthen the investment in software industry and other science risk investment organizations are encouraged to invest in software industry.
Shanghai Municipal Restructuring office shall , jointly with the relevant departments, help the qualified software enterprises list at home and abroad

Article 7 If an enterprise which was registered with the relevant department of Shanghai Municipality and hands in income tax invests, with the after-tax profits achieved after January 1,2000, in the authenticated software enterprises with the contact term longer than 5 years and the capital of the enterprises ifs formed or increased, the part of local revenue of the handed-in corporate income tax corresponding to the invested capital shall be refunded by relevant financial department at the same level.

Article 8 If the software enterprises in Pudong Software Park, Shanghai Software Park, State Information Security (East China) Base and Shanghai Integrated Circuit Design Industrialization Base bear an actual corporate income tax of more than 10% of the income of the relevant year, the park of the relevant year, the part of local revenue from the income tax beyond 10% shall be put into specific funds by the government at the same level and shall be used to support the building , construction and development of the parks and base concerned.

Article 9 Departments of Administration for Industry and Commerce shall simplify the examination and approval formalities and procedures and "Registration as Approval” system shall be applied to the establishment of software enterprises.

Article 10 The government-invested projects, with the price the software system RMB 0.5 million, shall go through invitation and submission of tenders.
Government agencies and non-profit institutions shall, by means of government procurement, purchase the software products relating to the security of the State.
Information security products shall be authenticated by the State information security authenticating organization before they are sold in Shanghai municipality.

Article 11 The relevant government agencies shall strengthen the safeguard over intellectual property, severely combat against piracy and safeguard, coordinating with the judicial department, the lawful rights of the owners of intellectual properties.
The government agencies at various levels, enterprises and institutions must apply authentic software.
The financial agencies at various levels shall appropriate specific funds for the government agencies and non-profit institutions with funds appropriated by the relevant government to purchase authentic software. The government agencies and the abovementioned institutions that do not purchase authentic software in a relevant year will be allocated budgets on a reduced basis.

Article 12 Shanghai will establish INTERNET thoroughfare specific to the exportation of software products. The software products exported through the specific thoroughfare, which have been determined by the customs, are entitled to the relevant preferntial policies. The foreign exchanges hereof can be collected, reimbursed an( cancelled after verification as they are done in tangible trade.

Article 13 If the software (software technology included), which is imported enterprises, will be exported after being redeveloped, the imported software (software technology included) shall be adopted corresponding bonded measures or the import of the software (software technology included) will be carried out as processing trade.

Article 14 The authenticated software enterprises are entitled to software import and export power.
Shanghai Municipal Foreign Economic Relations and Trade Commission, Shanghai Municipal Economic Commission and the overseas affiliates of Shanghai Industry (group) Corporations shall encourage software enterprises to establish branches and affiliates abroad and the software enterprises shall be guided and assisted in the establishment formalities and procedures.

Article 15 The rewards granted to the persons who have developed the software with autonomous intellectual property shall, after approval by Shanghai Municipality Government through Shanghai Information Office, be exempted from personal income tax.
The rewards in-kind granted to software developing employees by the relevant enterprises could be calculated into wages paid.

Article 16 The autonomous intellectual properties owned by software enterprises can, after assessment and verification of value, be added to the registered capital funds as Intangible capital.

Article 17 The application of the employees working with software enterprises for going abroad can be submitted for examination and approval once a year and the approval shall be valid for several times in the relevant year. The software enterprises which must dispatch employees to travel to and fro between Shanghai and Hong Kong can apply to going through the formalities for traveling several times to and for between Shanghai and Hong Kong. The employees of the software enterprises without supervisory administrative department can, after authentication by Shanghai Information Office, go through the formalities for going abroad with reference to those for public affairs.

Article 18 The colleges and universities shall make greater efforts to build up such disciplines as computer science and software. The enrolled students shall be permitted to change into the discipline of software and to develop software in relevant enterprises. The students with remarkable achievements in the development of software will be credited.
In colleges and universities, the courses with respect to software science shall be taught bilingually.

Article 19 The colleges & universities, educational institutions, well-known software enterprises are encouraged to establish schools on cooperative basis or to set up vocational software training organizations to train software professionals.
The training of software professionals shall be brought into the intellects introduction scheme formulated by Shanghai Municipality Government. In the intellects introduction projects, a certain proportion of software professionals will be sent to participate into the relevant training.

 
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