The Amendment on Income Tax Policy for Foreign Invested Enterprises in Software and IC Industries

Ministry of Finance, The State Administrative of Taxation
Cai Sui [2005] No. 109
01 July 2005

This amendment is to simplify the examination and approval procedure of income tax policy for Foreign Invested Enterprises in Software and IC Industries.

The original regulation stipulated that: Enterprises should obtain approval from the State Administrative of Taxation if their investment amount is above USD30,000,000 and obtain approval from respective taxation bureau if their investment amount is under USD30,000,000. From now on, enterprises could choose their own depreciation method and depreciation period for the purchased software and hardware when filing income tax return to tax bureau. However, once the depreciation method and period confirmed, enterprises are not allowed to change freely.

The respective tax bureau has the right to request enterprises to submit related information during audit. If irregularities are found, the respective tax bureau can carry out tax treatment according to the related regulations.

財政部 國家稅務總局
財稅[2005]109號
2005-07-01

本通知明確了簡化外商投資企業執行軟體和積體電路企業所得稅政策的有關審批程式。

原規定："投資額在3000萬美元以上的外商投資企業報由國家稅務總局批准；投資額在3000萬美元以下的外商投資企業，經主管稅務機關核准"停止執行。現企業可在所得稅納稅申報時自行確定符合規定的購進軟體或生產性設備的折舊或攤銷年限，但該折舊或攤銷年限一經選定，不得任意變動。

通知當中還明確當地主管稅務機關在年度所得稅審計時可要求企業提供相關資料，如有不符當地主管稅務機關可按照有關規定進行稅務處理。