Circular of the Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission and the Ministry of Industry and Information Technology on Enterprise Income Tax Policies for Further Encouraging the Development of the Integrated Circuit Industry
Circular of the Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission and the Ministry of Industry and Information Technology on Enterprise Income Tax Policies for Further Encouraging the Development of the Integrated Circuit Industry
Circular of the Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission and the Ministry of Industry and Information Technology on Enterprise Income Tax Policies for Further Encouraging the Development of the Integrated Circuit Industry
Cai Shui [2015] No. 6
March 2, 2015
The finance departments (bureaus), State tax bureaus, local tax bureaus, development and reform commissions and competent industry and information technology departments of all the provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the State plan,
According to the guiding principles of the Law of the People's Republic of China on Enterprise Income Tax and the implementation regulations thereof, the Circular of the State Council on Printing and Distributing Policies for Further Encouraging the Development of the Software Industry and the Integrated Circuit Industry (Guo Fa [2011] No. 4) and the Outline for Promoting the Development of the Integrated Circuit Industry of China, enterprise income tax policies for further encouraging the development of the integrated circuit (IC) industry are hereby notified as below to further advance technological innovation and industrial upgrading and promote the development of the information technology industry:
Article 1 If a qualified IC packaging or testing enterprise or enterprise producing IC critical and special materials or IC special equipment realizes profits before (or in) 2017, enterprise income tax will be exempted from the first and second years from the year of realizing profits, and enterprise income tax will be levied at a reduced rate of 50% based on the statutory tax rate of 25% from the third to fifth years up to the expiry of the preferential period.
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