‍1. Company Background‍

The company is a Wholly Foreign Owned Enterprise (WFOE)established in 2003 . The Company's main business can be divided into twoparts:

1) Sales of its own produced software, application of copyrights onits software and filing of the relevant tax incentive (refund of 14% VAT on the17% paid) . After the software’s free service period, relevant technologysupport and maintenance services will be provided at a service fee.

2) The software development contract entered with the parentcompany was filed at Technology Market Management Office (TM), at theCommission of Commerce (COC) Outsourcing Services System and at the COCTechnology Import and Export System. After the BT-VAT reform, the contract was alsofiled at the State Tax Office and the VAT exemption qualification was obtained. In 2014, the overseas revenue was estimated at 5.25 million USD.

2. Current Requirements and Problems

1) The outsourcing service contract was not filed on the COCSoftware Import and Export System? Is it necessary?

2) The company failed to obtain the 2014 COC financialsubsidy because as？ there were nopatents on the software, however, the same contract was used in previous yearsto apply for the financial subsidy.  So, for the 2015 COC financialsubsidy application, what will be the best approach to take?

3) Details regarding the application of the AdvancedTechnology Service Outsourcing Enterprises (ATSE) qualification.

4) Summary of the different relevant departments.

5) Suggestions about the company's actual situation.

‍3. RTF Analysis about the Potential Missed Preferential Opportunities‍

1)  Possibility ofobtaining the COC financial Subsidy.

2) Check the feasibility of applying for the ATSEqualification and its implementation.

3) Check the existence of any input VAT, whereby the 0% taxrate application might be an area to consider.

4) Check eligibility of other incentives and theirimplementation.