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Notice on Preferential IIT Policies for the Great Bay Area
As everyone are aware of, integrated circuit (IC) industry and software industry are the core of information industry and the key force to lead a new round of scientific and technological revolution and industrial transformation. on 4 August 2020, the State Council released the Policies of Promoting High-quality Development of Integrated Circuit Industry and Software Industry in the New Era, effective from July 27, 2020.842020727The highlights are as follows:
I. An IC manufacturer or project encouraged by the State to manufacture ICs with a linewidth of less than 28 nanometers (inclusive) and an operation period of more than 15 years are exempted from corporate income tax (CIT) from the first to the tenth year. CIT will be exempted for the first five years and will be reduced by half from the sixth to the tenth year at the statutory rate of 25% for an IC manufacturer or project encouraged by the State to produce ICs with a linewidth of less than 65 nanometers (inclusive) and an operation term of more than 15 years.Where such IC manufacturer is entitled to the preferential tax policies, the period of tax preference shall be calculated from the profit-making year; where such IC production project is entitled to the preferential tax policies, the period of tax preference shall be calculated from the taxable year in which such project obtains the first sum of production and operation income.1.2815651525%II. Enterprises engaged in IC design, equipment, materials, packaging and testing and software enterprises that are encouraged by the State are exempted from corporate income tax in the first and second years from the year when they begin to make profits, and shall pay corporate income tax reduced by half at the statutory tax rate of 25% in the third to fifth years.2. 25%
III. Key IC design enterprises and software enterprises encouraged by the State are exempted from corporate income tax from the first to the fifth year from the profit-making year and shall be subject to corporate income tax at a reduced tax rate of 10% for subsequent years.3. 10%
IV. Preferential VAT policies for IC enterprises and software enterprises shall continue to be implemented.4.
V. All eligible IC enterprises (including enterprises engaging in design, production, packaging, testing, equipment and materials) and software enterprises established within the territory of China, regardless of the nature of their ownership, are entitled to these Policies.5. Tap "Read More" to visit our website \n

Tax Privileges for Integrated Circuit and Software Companies

Tap "LegalTips"

to follow us

You may also feel interested in: Tax boost for Hainan FTP
Negative List for Pilot FTZ
Notice on Preferential IIT Policies for the Great Bay Area
As everyone are aware of, integrated circuit (IC) industry and software industry are the core of information industry and the key force to lead a new round of scientific and technological revolution and industrial transformation. on 4 August 2020, the State Council released the Policies of Promoting High-quality Development of Integrated Circuit Industry and Software Industry in the New Era, effective from July 27, 2020.842020727The highlights are as follows:
I. An IC manufacturer or project encouraged by the State to manufacture ICs with a linewidth of less than 28 nanometers (inclusive) and an operation period of more than 15 years are exempted from corporate income tax (CIT) from the first to the tenth year. CIT will be exempted for the first five years and will be reduced by half from the sixth to the tenth year at the statutory rate of 25% for an IC manufacturer or project encouraged by the State to produce ICs with a linewidth of less than 65 nanometers (inclusive) and an operation term of more than 15 years.Where such IC manufacturer is entitled to the preferential tax policies, the period of tax preference shall be calculated from the profit-making year; where such IC production project is entitled to the preferential tax policies, the period of tax preference shall be calculated from the taxable year in which such project obtains the first sum of production and operation income.1.2815651525%II. Enterprises engaged in IC design, equipment, materials, packaging and testing and software enterprises that are encouraged by the State are exempted from corporate income tax in the first and second years from the year when they begin to make profits, and shall pay corporate income tax reduced by half at the statutory tax rate of 25% in the third to fifth years.2. 25%
III. Key IC design enterprises and software enterprises encouraged by the State are exempted from corporate income tax from the first to the fifth year from the profit-making year and shall be subject to corporate income tax at a reduced tax rate of 10% for subsequent years.3. 10%
IV. Preferential VAT policies for IC enterprises and software enterprises shall continue to be implemented.4.
V. All eligible IC enterprises (including enterprises engaging in design, production, packaging, testing, equipment and materials) and software enterprises established within the territory of China, regardless of the nature of their ownership, are entitled to these Policies.5. Tap "Read More" to visit our website \n

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