CIRCULAR OF NDRC, MII, MOFCOM, SAT ON PRINTING AND DISTRIBUTING MEASURES FOR THE ADMINISTRATION OF KEY SOFTWARE ENTERPRISE ACCREDITATION WITHIN NATIONAL PROGRAMMING LAYOUT

National Development and Reform Commission, Ministry of Information Industry, Ministry of Commerce, State Administration of Taxation

Circular of NDRC, MII, MOFCOM, SAT on Printing and Distributing Measures for the Administration of Key Software Enterprise Accreditation
within National Programming Layout

Fa Gai Gao Ji [2005] No. 2669

The development and reform commissions, economic commissions (economic and trade commissions), authorities in information industry,
departments of commerce, state tax bureaus and local tax bureaus of all provinces, autonomous region, municipalities directly under
the central government, municipalities separately listed in the state plan:

In order to implement Several Policies concerning Encouraging the Development of Software Industry and Integrated Circuit (Guo Fa
[2000] No.18) of the State Council, to standardize the accreditation of key software enterprises within the national programming
layout, Measures for the Administration of Key Software Enterprise Accreditation within National Programming Layout is hereby formulated,
printed and distributed to you for observing hereof and doing well the relevant work.

Appendix: Measures for the Administration of Key Software Enterprise Accreditation within National Programming Layout

National Development and Reform Commission

Ministry of Information Industry

Ministry of Commerce

State Administration of Taxation

December 20, 2005 Appendix:Measures for the Administration of Key Software Enterprise Accreditation within National Programming Layout

Article 1

In accordance with Several Policies concerning Encouraging the Development of Software Industry and Integrated Circuit (Guo Fa[2000]No.18)
of the State Council, The Measures is hereby formulate in order to certify key software enterprises within national programming
layout, and to promote the rapid development of China’s software industry.

Article 2

The Key software enterprise within national programming layout refers to such an enterprise as obtains the accreditation of software
enterprises and meets one of the following conditions:

(i)

Its annual business income exceeds 0.1 billion yuan without loss in the same year.

(ii)

Its annual export volume exceeds 1 million USD, accounting for more than 50% of its annual business income.

(iii)

It ranks first top five in the annual key preferential software region.

The “business income” and “export volume” as prescribed in paragraph i) and paragraph ii) of Article 1 , “annual key preferential
software region” in paragraph iii) shall be dynamically adjusted by the authorities in charge of accreditation of key preferential
software enterprises within the national programming layout in accordance with the relevant provisions and the industrial performance
and be published in the website of China Software Industry Association(https://www.csia.org.en)and be audited on the basis of the
total volume certified by the authorities in charge of the accreditation of key preferential software enterprises within the national
programming layout.

The authorities in charge of the accreditation of key preferential software enterprises within the national programming layout refers
to the National Development and Reform Commission, the Ministry of Information Industry, the Ministry of Commerce, and the State
Administration of Taxation( hereinafter referred to as authorities in charge).

Article 3

The authorities in charge shall jointly entrust China Software Industry Association to act as accreditation authorities of key software
enterprises within the national programming layout (hereinafter referred to as accreditation authorities), responsible for organizing
the annual accreditation thereof.

Its responsibilities include:

(i)

Accepting application from key software enterprise within the national programming layout;

(ii)

Organizing the annual accreditation of key software industry within the national programming layout and raising the opinions about
accreditation

Article 4

The enterprise shall, in the process of applying for key software enterprises within the national programming layout, raise its application
directly and submit the following documents:

(i)

Application form for key software enterprises within the national programming layout;

(ii)

Accreditation of the software enterprise;

(iii)

Balance sheet, profit and loss statement, statement of cash flow, tax declaration form of the previous-year business income tax, staffing
tables and their academic credentials, documents about the software development environment and its business performance and etc.

(iv)

Where the enterprise applies for key software enterprise within the national programming layout in accordance with paragraph ii) of
Article 2 , it shall submit such documents as its previous-year software export certificates, export contract registration certificates,
valid export contract, foreign exchange earnings certificates or customs statistics.

(v)

The certificates that the tax authorities ascertain the enterprise’s immunity from bad faith tax arrears, evasion or fraud.

(vi)

Other documents required by the authorities in charge.

The due time for the application from key software enterprises within the national programming layout shall be May 30 of the same
year.

The application forms of the key software enterprises within the national programming may be downloaded from the website of China
Software Industry Association.

Article 5

The accreditation authorities shall be responsible for certifying the authenticity of the documents submitted by the applicant, judging
whether it meets the qualification for key software industry within the national programming layout. Where key software enterprise
is applied in accordance with paragraph iii) of Article 2 , the accreditation authorities shall be responsible for organizing a seminar
of the experts. The accreditation authorities shall, in accordance with its inspection and examination, submit the primarily selected
name list and the relevant documents hereof to the authorities in charge.

Article 6

The National Development and Reform Commission, the Ministry of Information Industry, the Ministry of Commerce, and the State Administration
of Taxation shall, by means of joint meeting, audit the primarily selected name list, certificate its by means of joint dispatch
prior to October of the same year and issue annual certificate to the certified enterprise.

Article 7

The name list of the key enterprises within national programming layout shall be published in the website the accreditation authorities
and the relevant media, and be subject to social supervision.

Article 8

The annual accreditation system shall be enforced upon national programming layout. Where the certified key software enterprises
within the national programming layout fails to enjoy tax exemption preference, its business income tax shall be reduced by 10%,
and the enterprise may, by holding the certificate issued in the same year, handle tax reduction and exemption procedures in the
tax authorities. Where the key software enterprise within the annual national programming layout fails to pass the ensuing-year certificate,
it shall not enjoy tax preferential policy.

Article 9

Where such alterations as readjustment, separation, merger, restructuring arise from the key software enterprise within the certified
national programming layout, the enterprise shall, within 30 days as of the date when the alteration was made, handle alteration
certificate or reapplication procedures in the accreditation authorities. Where the enterprise alters its certificate without approval,
it shall not succeed, of its own accord , the post_title of key software enterprise within the national programming layout and the relevant
preferential policies.

Article 10

Key software enterprises within the national programming layout shall pay taxes pursuant to law. Where such offences against the law
as tax evasion, tax dodging is found in the key software enterprises within the national programming layout, its qualification for
enjoy preferential tax policy shall, after its verification, be canceled.

Article 11

The key software enterprises within the national programming layout shall submit their genuine and authentic documents, guaranteeing
the sincerity and credibility of its contents and data.

Where false and faked documents or inaccurate contents and data are submitted, its accreditation application shall be ceased, its
qualification for key software enterprise within the national programming layout shall be revoked and its reduced or exempted tax
sum be recovered at the same time, the accreditation authorities shall not handle its accreditation application within three years.

Article 12

The accreditation certificate for key software enterprises within the national programming layout shall be printed uniformly.

Article 13

The Measures shall be interpreted jointly by the National Development and Reform Commission, the Ministry of Information Industry,
the Ministry of Commerce, and State Administration of Taxation

Article 14

The Measures shall be implemented as of January 1, 2006.