State Administration of Taxation and Ministry of Information Industry, Administration of the Certification of Integrated Circuit Design Enterprises and Products Measures

Promulgated: March 7 2002
Effective: as of date of promulgation
Interpreting authority: State Administration of Taxation and Ministry of Information Industry
Applicability: For purposes of the Measures, "integrated circuit design enterprise" refers to any organization engaged in the design of integrated circuit products (including development of integrated circuit design software) that is legally established in the PRC with independent legal person status. Integrated circuit products refers to integrated circuit design software and circuits, including those domestically designed for which, due to lack of domestic production capabilities, the manufacture has been consigned to an overseas producer (Article 2).

Main contents: The Measures set forth the examination and certification Measures necessary for integrated circuit design enterprises and products to be qualified for preferential policies offered by the State Council, Encouraging the Development of the Software and Integrated Circuit Industries Several Policies.
Integrated circuit design enterprises applying for certification should fulfil the following conditions: they should be a legally established enterprise with integrated circuit design as the principal business; possess adequate production and quality assurance capabilities; and obtain at least 30% of total annual revenue from design of integrated circuit products (Article 6). Enterprises should submit applications for certification to the authorities in charge of taxation at the place where they are located, which shall forward the application to the State Administration of Taxation for assignment with the Ministry of Information Industry of a certification body; the enterprise shall also provide relevant documentation to the China Semiconductor Industry Association for the record (Article 7).
Any alteration in a certified enterprise's organizational structure such as merger or division should be reported to the State Administration of Taxation within 30 days (Article 14). Tax evasion on the part of an enterprise will result in immediate suspension of preferential tax privileges (Article 15).
Related legislation: State Council, Encouraging the Development of the Software and Integrated Circuit Industries Several Policies, Jun 24 2000, CLP 2000 No.7 p48
Repealed legislation: Certification of Integrated Circuit Design Enterprises and Products Tentative Administrative Measures, Nov 9 2000