China Adopts a Bill on Privileges for the IT Industry

The People's Republic of China creates the most attractive conditions for the development of the IT industry. The State Council of the People's Republic of China adopted a number of amendments to the tax policy regarding IT companies. Now companies that produce integrated circuits and software will receive favorable conditions for their business development.

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. If a company develops 65 nm process chips, it will be exempt from paying corporate tax for the next 5 years, and in the next 5 years, it will pay it at a rate of 50%. Companies developing 130 nm chips 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%.

In addition, China has extended the carryover period by 10 years for companies developing chips of 130 nm or less. Companies that are engaged in the design of integrated circuits, equipment, materials, software development, etc. are also exempt from corporate tax for the next 2 years, and then 3 years they will pay it at a rate of 50%.

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