IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 20 Apr 2012 | Removal date: 31 Dec 2017
Still in force

Tax or social insurance relief

On the 20th of April 2012, two Chinese ministries* jointly announced a policy granting corporate tax breaks to companies producing integrated circuits (ICs).

Two tiers of tax leniency were announced。

Firstly, any companies producing ICs with a circuit gauge of ≤0.8μm can apply for complete exemption from the tax for their first two years. For the third to fifth year, a half rate of 12.5% would be levied.

Secondly, for companies producing ICs with a circuit gauge of ≤0.25μm or whose investment amount is more than (CNY 8bn) who have been operating profitably for 15 years or more, a second scheme is available where the tax will be exempted for the first five years of profit-making, then at the full 25% for the sixth to tenth years, then at 15% for any remaining years up to 2017.

To be eligible, the firm in question must have been established before December 31st, 2017.

UPDATE: In 2018, the policy was updated - please see related act for more information.

 

*Chinese Ministry of Finance (MOF) and State Administration of Taxation (SAT)

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

831 Management consulting & management services; ITC services
843 On-line content

Please report this page in case you detect an inaccuracy in its content.