The State Council Encourages The Software IC Industry To Develop &Nbsp And Implement VAT Preferences.

Premier Wen Jiabao chaired a State Council executive meeting on 12 April to study and deploy policies and measures to further encourage the development of the software industry and integrated circuit industry.

The meeting pointed out that the software industry and the integrated circuit industry are national strategic emerging industries, and are important foundations for national economic and social informatization.

In recent years, China's software industry and IC industry have developed rapidly, the scale of industry has expanded rapidly, and the level of technology has improved significantly, which has greatly promoted the construction of national informatization and economic and social development.

But compared with the international advanced level, the development base of China's software industry and IC industry is still weak.

To encourage the development of the software industry and the IC industry, the meeting has identified the following

Mergers and acquisitions in software industry will accelerate

Analysts believe that after the implementation of the policies and measures that the State Council further encourages the development of the software industry and the IC industry, the software industry will develop faster and the M & A of the industry will accelerate.

The meeting clearly stated that the value-added tax policy for software products will continue to be implemented and business tax and income tax concessions will be granted to eligible enterprises.

At the same time, we should further improve and cultivate the market environment of software service industry.

Analysis of the industry, in 2011, the software industry will usher in various favorable policies.

The ministries and commissions of the Ministry of industry and Commerce will actively implement the adjustment and revitalization plan of key industries such as electronic information, continue to foster excellent software enterprises and encourage indigenous innovation and internationalization of local software enterprises. The preferential policy of "new 18" is expected to be finally implemented.

Statistics show that, according to the development goals of the software industry during the "12th Five-Year" period, the average annual growth rate of the software services industry over the past 2011-2015 years was over 20%, accounting for more than 20% of the total income of the electronic information industry, and over 10 of the enterprises with more than 10 billion annual income.

In addition to the "12th Five-Year plan", "new 18" is also worth looking forward to.

The core content of the "18 article" that is about to expire is the tax preference for enterprises. It reduces the value added tax of 17% to 3%, and implements the policy of "levy immediately and retire", which has brought great space to reduce the burden of Taxation for software enterprises.

The market expects that "new 18" will continue to continue this preferential tax policy.

Recently, China's software industry has seen rapid growth.

According to the data released by the Ministry of industry and Commerce recently, China's software industry achieved a total revenue of 12081 billion yuan in the first 11 months of 2010, an increase of 30% over the previous year, breaking the 1 trillion yuan mark ahead of schedule and extending the upward trend since the three quarter.

Mergers and acquisitions will speed up

The "endogenous development" relying on technology, service and management innovation is the development mode of the software industry in our country. However, the change of internal and external situation makes the "epitaxial M & a" play an increasingly important role in the development strategy of software enterprises.

In the past two years, UFIDA, Kingdee, Southeast finance, Donghua software, Huasheng Tiancheng and Guang Lian Da and other software service enterprises have accelerated their own development speed through M & A.

UF software has explicitly mentioned mergers and acquisitions in its annual strategy for three consecutive years.

Wang Wenjing, chairman of the company, said that if you have the right target and the right price, UFIDA will take over.

The choice of M & A objects will focus on those complementary enterprises and competitive enterprises, while strengthening the integration of M & a business and improving the efficiency of M & A.

Supplementary products and meeting the diverse needs of customers are an important reason for the active acquisition of the software industry.

For example, in January 12th, Neusoft Group signed a share pfer agreement with Momi Yasunobu to acquire the 73.14% stake in the latter and become its controlling shareholder.

Lu Zhaoxia, senior vice president of Neusoft, said the acquisition enabled the company to expand and strengthen the medical ERP product line on the basis of its existing products and solutions.

The meeting clearly encouraged and supported enterprises to reorganize mergers and acquisitions across regions and strengthen the integration of industrial resources.

We should guide the establishment of equity or venture capital funds, and actively promote enterprises to use the intangible assets such as intellectual property rights to pledge loans, and broaden the financing channels for enterprises.

Analysts point out that under the three driving forces of capital, market and technology, the merger and reorganization of management software industry in 2011 will rise again, and the number of software providers will decrease.