ANNOUNCEMENT 28 Mar 2018
March 28th, 2018 - Several Chinese ministries announced an updated version of preferential tax policy from 2012.
NUMBER OF INTERVENTIONS
PRC Ministry of Finance, March 28th, 2018. (财税〔2018〕27号 关于集成电路生产企业有关企业所得税政策问题的通知)
In March 2018, the Chinese government announced that a preferential policy for integrated circuit (IC) enterprises started in 2012 would be continued, with some alterations.
For full information on the existing preferential treatments that have been expanded, please see related act.
Changes in the 2018 policy are:
The previous policy was also extended for firms established before December 31st, 2018, but are not yet making profit.
The amber classification of this intervention is due to the fact that, while the maximum circuit gauge allowed to qualify for the scheme has been reduced, this reflects the advances made in IC technology since the previous scheme was incepted. The updated numbers have been selected to be proportional to the previous ones in terms of ease of manufacturing. In addition, since the previous policy was also extended for not-yet-profitable firms (as mentioned above).
UPDATE: On May 17th, 2019, the State Taxation Administration released Announcement 2019/68, which emphasised the policy regarding firms established before December 31st, 2018.