China Accelerates Measures to Boost Local Software and Circuitry Sectors

May 30, 2019 | BY

Marilyn Romero

As the U.S. targets Chinese high tech in the escalating trade war, China introduces more tax incentives to boost its domestic software and integrated circuitry sectors.

Semiconductors

China's efforts to join the top rank of developed nations in terms of new technologies by 2020 received another boost in May 2019 when its Ministry of Finance and State Administration of Taxation announced that Chinese integrated circuit design and software enterprises will get more tax incentives.

The ministries introduced measures for qualified IC and software firms to enable such companies to benefit from an income tax exemption in their first two profit-making years, starting in 2019. From their third to the fifth years of operation, those companies that meet certain requirements will also qualify for a 50% reduction in income tax until the expiry of the preferential period.

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