Integrated circuit enterprise

Introduction of policy

Enterprises producing IC less than 0.25 micron in width or with over RMB 8 billion investment can enjoy 15% preferential CIT rate. They can enjoy 5-year exemption followed by 5-year half-reduction on CIT if having operation period of over 15 years. Enterprise producing IC less than 0.8 micron (inclusive) in width, IC packaging or testing enterprises, IC key material production enterprises, IC special equipment production enterprises and IC design enterprises can enjoys 2-year exemption followed by 3-year half-reduction on CIT. Key IC design enterprises can enjoy 10% preferential CIT rate if they are not enjoying tax exemption in that year.

IC enterprises should satisfy regulatory requirements on personnel, core technology, R&D expenses, IC sales (operating) income, production capacity and facilities, relevant qualifications, etc. Requirements for key IC design enterprises are higher than those for IC design enterprises.