China introduces benefits for the IT sector
The People’s Republic of China is actively developing the IT sector. The State Council of the People’s Republic of China adopted a number of amendments to the tax policy regarding IT companies. The innovations will affect companies that produce integrated circuits and software.
The main points of the changes:
- Companies that develop 28nm chips or less, with a lifespan of 15 years or more, will be eligible for a corporate tax exemption for the next 10 years.
- The organization that develops 65 nm process chips will be exempted from paying corporate tax for the next 5 years, and the next 5 years will pay it at a rate of 50%.
- Companies developing chips for 130 nm or less are exempt from corporate tax for the next 2 years, and the next 3 years will pay it at a rate of 50%.
- For organizations that are engaged in the development of 130 nm chips and less, the loss carryover period has been extended by 10 years.
- Companies that are engaged in the design of integrated circuits, equipment, materials, software development, etc. also exempt from corporate tax for the next 2 years, and then 3 years will pay it at a rate of 50%.
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