BEIJING -- China specified preferential policies for enterprise income tax in software and integrated circuit (IC) industry 9, according to an official circular jointly published by the Ministry of Finance, State Administration of Taxation, National Development and Reform Commission and Ministry of Industry and Information Technology on May 9.
China has removed non-administrative review on the identification of software and IC enterprises' qualification to enjoy tax incentives. Those enterprises include IC manufacturing enterprises, IC design enterprises, software enterprises, major software enterprises and IC design enterprises within the national planning.
According to the circular, tax reduction or exemption period for software and IC enterprises should be calculated from the profit-making year. If profit-making year is not qualified for tax preference, those enterprises can enjoy tax reduction or exemption in the remaining period after identified as qualified for the first time.
In addition, the circular has clearly defined IC manufacturing enterprises, IC design enterprises and software enterprises.
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