SMM News: Ministry of Finance Administration of Taxation notice No. 68 of 2019
In order to support the development of integrated circuit design and software industry, the following is announced on the relevant enterprise income tax policies:
1. Integrated circuit design enterprises and software enterprises established according to law and eligible for the requirements shall, before December 31, 2018, calculate the preferential period from the profit year, and shall be exempted from enterprise income tax from the first year to the second year. From the third to the fifth year, the enterprise income tax shall be halved at the statutory rate of 25% and shall be entitled to the expiration of the period.
2. "meeting the conditions" as mentioned in Article 1 of this announcement, It refers to the Circular of the State Administration of Taxation of the Ministry of Finance on further encouraging the Development of Enterprise income tax Policy of Software Industry and Integrated Circuit Industry (Finance and Taxation (2012) No. 27) and the Development of the State Administration of Taxation of the Ministry of Finance. The conditions set out in the Circular of the Ministry of Industry and Information of the Reform Commission on issues relating to preferential income tax policies for enterprises in the software and integrated circuit industries (Finance and Taxation (2016) No. 49).
I hereby announce.
General Administration of Taxation of the Ministry of Finance
17 May 2019