Software enterprises face new challenges in securing tax incentives
Since the State Council introduced supporting policies to promote the development of the software and integrated circuit ("IC") industries back in 2000, these industries have blossomed, making great contributions to the advancement of China’s economic structure. In January 2011, the State Council announced additional supporting policies (including various tax incentives) to further enhance the investment and technology upgrading of the software and IC industries.
In 2012, the State Administration of Taxation ("SAT") and Ministry of Finance ("MOF") jointly issued Caishui  No. 27 ("Circular 27"), detailing Corporate Income Tax ("CIT") incentives for the relevant industries. Recently, the Ministry of Industry and Information Technology ("MIIT"), the National Development and Reform Commission ("NDRC"), MOF and SAT jointly issued the (the "Measures"), setting out the administrative guidelines for the application of qualified software enterprises.
In this issue of News Flash, we’ll provide a recap of the relevant CIT incentives, highlight the important points in the assessment of qualified software enterprises and share with you our observations.
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