1. As to the approved application project of converting high-tech achievements into actual productive force, the government will offer them a series of preferential policies. Within the first three years from the day of approval, the government will refund the land-use fee and the land-transfer fee for the projects to the approved hi-tech achievements transfer projects; The transaction formality fees and the property right registration fee in purchasing the production and operation buildings will be free of charge, and part of the house deed tax can be returned as the government’s allowance; Water-supply cost, gas-capacity expansion fee and electricity supply and ration fee during the construction process will be exempt from taxation. Within the first three years from the day of approval, the Ministry of Finance will earmark special fund to support the local revenue from business tax, enterprise income tax and the value added tax and reduce the amount of the special fund by half in the next three years.

2. High and new technology achievements may participate in the investment of transfer projects as invisible assets. The value of high and new technology achievements as invisible assets may account for as much as 35% of the registered capital. The cooperative parties can act according to their own agreement if there is any in this aspect.

3. The government will give privileged position to the approved hi-tech achievements transfer projects in the list of the technical transformation projects program and give support in terms of capital injection and loan-interest subsidization.

4. Once the new-edition software enterprises are approved, the enterprise income tax will be exempt from taxation for the first two years from their first profit-earning year and exempt by half from the third year to the fifth year.

5. To the key software enterprises in the national planning program, if they have not enjoyed the preferential rights in tax exemption during the current year, the enterprise income tax will be levied at the rate of 10 percent.

6. The enterprises that have invested in domestic technical transformation projects according to the national industrial policies, 40 percent of the homemade facilities investment needed in their projects would be offset against the enterprise income tax that is newly added in purchasing facilities for the enterprise technical projects compared to that of the previous year.

7. From June 24,2000 to the end of the year 2010, if ordinary taxpayers of the value added tax sell the software products developed and produced by themselves, the amount of the actual tax charge of the value added tax that surpasses 3 percent will be returned as soon as it is levied after the value added tax has been levied at the rate of 17 percent according to the law.

8. From June 24, 2000 to the end of the year 2010, if ordinary taxpayers of the value added tax sell the integrated circuit products (including monocrystallines) developed and produced by themselves, the amount of the actual tax charge of the value added tax that surpasses 6 percent will be returned as soon as it is levied after the value added tax has been levied at the rate of 17 % according to the law.