Software industry revenues rose 26 percent year-on-year to 652 billion yuan($103.06 billion) from January to April, slowing 1.9 percentage points from the sameperiod last year.
The growth during the January-April period also marked a slowdown of 0.4percentage points from the first quarter of this year, the MIIT data showed.
Software exports amounted to $10.47 billion during the period, up 10.2 percent year-on-year, slowing 13 percentage points from a year ago and decelerating 4.9percentage points and 2.3 percentage points, respectively, from February and March.
To boost the sector’s growth, the Chinese government has created preferential taxpolicies for software and integrated circuit (IC) enterprises to spur technologicalinnovation and industrial upgrades, according to a government statement issued onThursday.
Backdated to January 1, 2011 and effective until December 31, 2017, enterprises thatmanufacture IC lines thinner than 0.8 microns will be approved for two-yearcorporate tax exemptions once they make a profit.
They will then be taxed on only half of their corporate income for another threeyears, according to a joint statement from the Ministry of Finance and the StateAdministration of Taxation issued earlier this month.
The country’s current corporate income tax rate is set at 25 percent. Companiesproducing IC lines thinner than 0.25 microns or that have investment exceeding 8billion yuan will be taxed at a discounted rate of 15 percent, the statement said.