China Details Tax Concessions for IC and Software Industries

China’s Ministry of Finance, State Taxation Administration, National Development and Reform Commission and Ministry of Industry and Information Technology recently issued a joint announcement (No. 45 [2020]) concerning enterprise income tax policies to support the integrated circuit (IC) and software industries.

IC manufacturers and manufacturing projects involving IC line width of 130 nanometres or less, as well as enterprises whose business relates to IC design, equipment, materials, packaging or testing, are eligible for tax cuts (subject to stipulated conditions), as are software enterprises. The list of eligible enterprises or projects will be prepared by the four authorities listed above and other relevant departments. These measures took effect on 1 January 2020.

Source: State Taxation Administration