On 4 May 2016, the State Administration of Taxation (SAT), the Ministry of Finance (MOF), the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued a notice (Cai Shui 2016 No. 49) clarifying the tax incentives for enterprises engaged in software and integrated circuits (IC).
Qualifying enterprises are required to submit relevant documents to the tax authorities as part of their final annual tax settlements. Based on Notice Cai Shui [2012] No. 27, Notice Cai Shui [2016] No. 49 clarifies the requirements for the following enterprises to be eligible for the tax incentives:
- enterprises engaged in manufacturing IC;
- enterprises engaged in designing IC;
- software enterprises; and
- key software enterprises designated by the State.
