Four departments clarify the preferential policies for enterprise income tax in software IC industry

According to the Ministry of Finance on May 9, the Ministry of finance, the State Administration of Taxation, the development and Reform Commission and the Ministry of industry and information technology jointly issued a notice on issues related to preferential policies for enterprise income tax in the software and integrated circuit industries. The notice shall be implemented as of january1,2015.

The notice points out that, according to the decision of the State Council on canceling and adjusting a number of administrative examination and approval items (GF [2015] No. 11) and the decision of the State Council on canceling non administrative examination and approval items (GF [2015] No. 27), integrated circuit manufacturing enterprises, integrated circuit design enterprises, software enterprises The non administrative licensing examination and approval for the tax preference qualification of key software enterprises and integrated circuit design enterprises (hereinafter referred to as software and integrated circuit enterprises) within the national planning layout have been canceled.

The notice specifies the definitions of integrated circuit manufacturing enterprises, integrated circuit design enterprises and software enterprises.

The circular pointed out that software and integrated circuit enterprises should calculate the preferential period of regular tax reduction and exemption from the profit-making year of the enterprise. If the profit-making year does not meet the preferential conditions, it shall enjoy the corresponding tax reduction and exemption for the remaining years of the preferential period from the year that meets the conditions for software and integrated circuit enterprises for the first time.

[full text of notice]

Ministry of finance, State Administration of Taxation, development and Reform Commission, Ministry of industry and information technology

Circular of the State Council on Relevant Issues concerning preferential policies for enterprise income tax in the software and integrated circuit industries

CS [2016] No. 49

Finance departments (bureaus), state taxation bureaus, local taxation bureaus, development and reform commissions, and competent departments of industry and information technology of all provinces, autonomous regions, municipalities directly under the central government and cities specifically designated in the state plan: