BEIJING, Oct. 10 -- The revenue of Shanghai's software industry in Shanghai is likely to jump 30 percent to hit 80 billion yuan (10.52 billion U.S. dollars) this year, thanks to strong exports and core software product development, Shanghai Municipal Information Commission said Tuesday.

Local software firms can apply for product certification and tax deduction within one day at the commission's office starting from Tuesday. In the past it took up to three months.

Shanghai's software industry revenue reached 38.5 billion yuan in the first half. It is expected to grow 30 percent year on year to surpass 80 billion yuan in 2007, which is in line with the city's forecast of US$10 billion.

In 2006, the local software industry earned 61.67 billion yuan in revenue, one-eighth of the national level. Exports were worth 990 million dollars, one-sixth of the country level, according to the commission.

"Shanghai's firms have become competitive in core sectors such as operating system and midware. Previously, the sectors were dominated by foreign players," said Shi Xingde, the commission's senior official.

China Standard Software Co, which provides self-developed operating system, has won deals from 23 government bureaus already this year.

A total of 1,200 firms have software certification in Shanghai and more than 10 firms, such as The9 Ltd and Baosight Inc, are listed in domestic or overseas markets. The profit margin of the software industry has improved in the last four years - 13.67 percent in 2006 compared with 2.63 percent in 2002, according to the commission.

To boost the development of the software industry, the commission decided to improve efficiency of the firms' certification and product registry in one location.

Certified software firms also needn't pay income taxes for the first two years and are required to pay half of the tax in the following three years.

(Source: Shanghai Daily)