China’s Ministry of Finance and Ministry of Industry and Information Technology have issued a notice introducing new tax incentives for qualified integrated circuit (IC) production enterprises.
For new IC production enterprises or projects established from 1 January 2018 will be entitled a 2 year tax exemption from the first year of profitability for IC production of 130-nanometers or narrower and a 50% tax rate reduction for the third to fifth year, provided that the operations period is more than 10 years; and a 5-year tax exemption from the first year of profitability for IC production of 65-nanometers or narrower or whose investment exceeds CNY 15 billion and a 50% tax reduction for the sixth to tenth year, provided that the operations period is more than 15 years.
