Understanding software and IC Enterprise Income Tax policy rules

May 3, the Ministry of Finance, the State administration of taxation issued "on further encourage the software industry and integrated circuit industry to develop enterprise income tax policy Notice" [tax (2012)27], the policy is the Ministry of Finance, the State administration of taxation to further implement the January 28, 2011 issued the " One of the implementation rules documents issued by the State Council concerning the issuance of a number of policies for further encouraging the development of software industry and integrated circuit industry (article 4th). The paper further regulates the income tax issues involved in the implementation of article 4th, and makes specific operational provisions for the collection of income tax on software and IC enterprises.

However, the industry is looking forward to more implementation of the rules document issued, so that China's software and integrated circuit industry to develop a more relaxed environment, innovative atmosphere more active, so that the industry to achieve faster and better development.

Time on the cohesive content on the inheritance

Article 4th of article 33rd clear that the policy by the National Development and Reform Commission with the Ministry of Finance, the State administration of taxation, industry and information, Ministry of Commerce, General administration of Customs and other departments responsible for interpretation. The promulgation of the [fiscal (2012)27] reflects the state's support to encourage the development of software and integrated circuit industry, innovation and other preferential policies in the tax on the latest progress, reflecting the previous preferential policies in time, in succession, development in the implementation of the overall thinking and principles, Represents the latest development in optimizing the environment for software and integrated circuit industries.

The first is the convergence of time. Article 4th positively affirmed the enormous promotional effect of article 18th and inherited and developed the main elements of the preferential tax policy set out in article 18th. However, due to the limitation of 18th, as at December 31, 2010, the beginning of the 2011 New Year, 4th, the timely introduction of the preferential policy of the limitation extended to December 31, 2017.

Article 18th and its supporting tax implementation policy is the Ministry of Finance, the State administration of taxation on corporate income tax on a number of preferential policies of the notice [tax (2008)1 number], the preferential policy of the time effective period is December 31, 2010. In order to the policy in the time of convergence, the tax (2012)27 document specifically stipulates: In accordance with the original (finance and taxation (2008)1) documents identified and enjoy the original periodic tax concessions, enterprises can continue to enjoy preferential tax policy after the implementation of this notice until December 31, 2017 expires. In order to maintain the limitation of the original 18th text, this notice provides for retroactive execution from January 1, 2011.

Second, the content of the inheritance. Article 4th inherits the main policy content of the national Support software and IC industry development since the release of article 18th, and according to the experience of the implementation in recent years, Enrich and supplement some new content, make it more perfect. [Tax (2012)27] inherits the main content of [finance and taxation (2008)1] document.

The main contents of the further clarifying and inheriting of article 4th are as follows: "Two free three halves (0.8 micron technical grade)" and "five free of five halves (0.25 microns and more than 8 billion yuan)" in the original 18th in accordance with the provisions of the integrated circuit enterprises, such as income tax preferential policies. The [tax (2012)27] document also has a clear and operable provisions.