To follow the regulations posted yesterday:

4. The Ministry of Finance and the State Administration of Taxation issued the Notice of the Value Added Tax (VAT) Policy for Software Product (hereinafter referred to the Notice)

On 13th October, 2011, the Ministry of Finance and the State Administration of Taxation jointly issued the Notice to further define the applicable scope, applicable conditions, and the calculation of the tax refund amount and other specific details of the preferential policy for the VAT of software product. The Notice clarifies that when the general taxpayers of VAT selling the software products developed and produced by themselves, the VAT shall be charged at the rate of 17%, while the amount exceeding 3% of the actual imposed VAT shall be refunded immediately. This policy will enter into force on 1st January, 2012.