China News Service, December 17th. According to the website of the Ministry of Finance, the Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission, and the Ministry of Industry and Information Technology have jointly issued the "Announcement on Promoting the High-quality Development of the Integrated Circuit Industry and Software Industry Enterprise Income Tax Policy" (hereinafter referred to as " announcement").
The "Announcement" clarifies that the integrated circuit design, equipment, materials, packaging, testing and software companies encouraged by the state will be exempted from corporate income tax for the first to second years starting from the profit-making year. The statutory tax rate of 25% is halved and levied corporate income tax.
According to the "Announcement", in accordance with the relevant requirements of the "Notice of the State Council on Issuing Several Policies to Promote the High-quality Development of the Integrated Circuit Industry and Software Industry in the New Era" (Guo Fa [2020] No. 8), it aims to promote the high-quality development of the integrated circuit industry and the software industry. , Hereby announces the following related corporate income tax policy issues:
First, the integrated circuit line width encouraged by the state is less than 28 nanometers (inclusive), and the integrated circuit production enterprises or projects with an operating period of more than 15 years are exempt from corporate income tax from the first to the tenth year; the integrated circuit line width encouraged by the state For IC manufacturing enterprises or projects that are smaller than 65 nanometers (inclusive) and have an operating period of more than 15 years, corporate income tax is exempt from the first to the fifth year, and the statutory tax rate of 25% from the sixth to the tenth year is reduced by half Enterprise income tax; the state encourages integrated circuit production enterprises or projects with an integrated circuit line width less than 130 nanometers (inclusive) and an operating period of more than 10 years, exempted from enterprise income tax from the first to the second year, and from the third to the fifth year Annual corporate income tax is levied at a statutory tax rate of 25%.
For integrated circuit production enterprises that enjoy preferential tax policies, the preferential period starts from the profit-making year; for integrated circuit production projects that enjoy preferential tax policies, the preferential period starts from the tax year in which the project obtains the first production and operation income. Integrated circuit production projects need to be separately accounted for and calculated, and period expenses should be reasonably allocated.
The list of integrated circuit production enterprises or projects encouraged by the state shall be formulated by the National Development and Reform Commission, the Ministry of Industry and Information Technology in conjunction with the Ministry of Finance, the State Administration of Taxation and other relevant departments.
Second, the nationally encouraged integrated circuit manufacturing enterprises with a line width less than 130 nanometers (inclusive), which belong to the list of nationally encouraged integrated circuit manufacturing enterprises, are allowed to carry forward the unrecovered losses that occurred in the five tax years before the year. The longest rollover period shall not exceed 10 years.
Third, the integrated circuit design, equipment, materials, packaging, testing, and software companies encouraged by the state will be exempted from corporate income tax for the first to second years from the profit-making year, and 25% for the third to fifth years. The statutory tax rate is halved and corporate income tax is levied.
The conditions for integrated circuit design, equipment, materials, packaging and testing enterprises and software enterprises encouraged by the state shall be formulated by the Ministry of Industry and Information Technology in conjunction with the National Development and Reform Commission, the Ministry of Finance, the State Administration of Taxation and other relevant departments.
Fourth, the key integrated circuit design companies and software companies encouraged by the state will be exempted from corporate income tax for the first to fifth years from the profit-making year, and the corporate income tax will be levied at a reduced rate of 10% for subsequent years.
The list of key integrated circuit design and software companies encouraged by the state shall be formulated by the National Development and Reform Commission, the Ministry of Industry and Information Technology in conjunction with the Ministry of Finance, the State Administration of Taxation and other relevant departments.
Fifth, companies or projects that meet the original policy conditions and have entered the preferential period before 2019 (inclusive) can continue to enjoy the original policy until the expiration date, if they also meet the first in this announcement According to Article 4, relevant preferential treatment can be enjoyed in accordance with the provisions of this Announcement. Among them, the regular tax reduction and exemption can be calculated in accordance with the provisions of this Announcement.
In line with the original policy conditions, enterprises or projects that have not entered the preferential period before 2019 (inclusive) will no longer implement the original policies from 2020 (inclusive).
Sixth, if integrated circuit companies or projects and software companies meet the conditions of multiple regular tax reduction and exemption preferential policies in accordance with the provisions of this announcement, the company can choose one of the policies to enjoy relevant preferential treatment.
Among them, those who have entered the preferential period can choose one of the policies to enjoy the relevant preferential during the remaining period.
Seventh, for the preferential treatment stipulated in this announcement, if a list is adopted for management, the National Development and Reform Commission and the Ministry of Industry and Information Technology shall provide the Ministry of Finance and the State Administration of Taxation with a list of enterprises and projects that can enjoy the preferential treatment in the previous year before the end of March each year. ; If the list is not adopted for management, the tax authority shall refer it to the development and reform, industry and information departments for verification in accordance with the provisions of Article 10 of Caishui [2016] No. 49.
Eighth, if integrated circuit companies or projects and software companies enjoy preferential treatment in accordance with the original policies and regulations, the tax authorities shall refer them to the development and reform, industry and information departments for verification in accordance with Article 10 of Caishui [2016] No. 49.
Ninth is the original policy referred to in the "Announcement", including: "Notice of the Ministry of Finance and the State Administration of Taxation on Further Encouraging the Development of the Software Industry and Integrated Circuit Industry on Corporate Income Tax Policies" (Caishui [2012] No. 27), and "The Ministry of Finance and the State Administration of Taxation" Notice of the Ministry of Industry and Information Technology of the National Development and Reform Commission on Further Encouraging the Development of the Integrated Circuit Industry Enterprise Income Tax Policy (Caishui (2015) No. 6), and the Ministry of Finance and the State Administration of Taxation, Ministry of Industry and Information Technology on the Software and Integrated Circuit Industry Notice on Issues Related to Preferential Enterprise Income Tax Policies (Caishui (2016) No. 49), and Notice of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology of the National Development and Reform Commission on Issues Concerning Enterprise Income Tax Policies for Integrated Circuit Manufacturers (Caishui (2018) 27), Announcement of the Ministry of Finance and the State Administration of Taxation on the Corporate Income Tax Policies for Integrated Circuit Design and Software Industry (Announcement No. 68 of 2019 of the Ministry of Finance and the State Administration of Taxation), and the Announcement of the State Administration of Taxation of the Ministry of Finance on Integrated Circuit Design Enterprises and Software Enterprises in 2019 Announcement on the applicable policies for the final settlement of corporate income tax" (Announcement No. 29, 2020 of the Ministry of Finance and the State Administration of Taxation).
Tenth, the "Announcement" will be implemented from January 1, 2020.
In Caishui [2012] No. 27, Article 2 "After certification, the enterprise income tax will be reduced at a 15% tax rate" and Article 4 "Key software companies and integrated circuit design companies within the national planning layout, if they did not enjoy For tax-exempt preferential treatment, the corporate income tax can be levied at a reduced tax rate of 10%."