Preferential Corporate Income Tax (“CIT”) policies on the integrated circuit (IC) and software industry

To support the development of the technology enterprises such as Huawei, ZTE, etc., in May 2019, the Government announced the preferential CIT policies for the IC and software industry that:-

• Since 31 December 2018, the eligible IC and software enterprises would enjoy a two-year CIT exemption and followed by a three year 50% reduction from the year that the enterprises started to earn profit.
• The above-mentioned eligible enterprises refer to the IC and software enterprises stipulated in the Notice No. 27 (2012) and the Notice No. 49 (2016) of the Ministry of Finance.