The Ministry of Finance announced on May 22 that in order to support the development of integrated circuit design and software industry, the Ministry of Finance issued an announcement on enterprise income tax policy for integrated circuit design and software industry, calculating the preferential period from the profit-making year before December 31, 2018, exempting enterprise income tax from the first year to the second year, and reducing the enterprise income tax by half according to the 25% statutory tax rate from the third to the fifth year. Tax payable and enjoy until the expiration date.
The full text of the announcement is as follows:
Announcement on Enterprise Income Tax Policy for Integrated Circuit Design and Software Industry
Announcement No. 68 of 2019 by the General Administration of Taxation of the Ministry of Finance
In order to support the development of IC design and software industry, the following announcements are made on enterprise income tax policies:
1. Integrated circuit design enterprises and software enterprises established in accordance with the law and qualified by the law shall calculate the preferential period from the profit-making year before December 31, 2018. Enterprise income tax shall be exempted from the first year to the second year. From the third year to the fifth year, enterprise income tax shall be reduced by half according to the 25% statutory tax rate and shall enjoy until the expiration of the period.
2. As mentioned in Article 1 of this notice
I hereby announce.
General Administration of Taxation, Ministry of Finance
17 May 2019
Source Ministry of Finance website