December 24 2020

Four Authorities Unveil Preferential Corporate Income Tax Policies for Integrated Circuit and Software Companies

Announcement by Multi-authority

The Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission and the Ministry of Industry and Information Technology recently released the Announcement about Corporate Income Tax Policies for Promoting High-quality Development of the Industries of Integrated Circuit and Software.

According to the announcement, eligible integrated circuit companies can enjoy corporate income tax exemptions for as long as ten years; starting from the year of profitability, eligible integrated circuit design companies and software companies can be exempted from corporate income tax in the first five years and pay a lower tax rate of 10% in the following years.