The new deal will be introduced semiconductor income tax "five exemptions and five reductions"

The semiconductor industry will be introduced by the "five exemptions and five reductions of enterprise income tax preferential policies to support the new policy, the new policy is expected to be introduced in the second half, this reporter was informed from the person concerned. This preferential policy than the existing foreign companies in the country to enjoy the two free three halved policy has been greatly improved.

According to existing regulations, for the production of foreign invested enterprises operating in more than 10 years, the annual profit from the beginning, the first and second years will be exempt from enterprise income tax, the third to fifth years, the corporate income tax levied. The upcoming policy to support the semiconductor industry will adopt a similar approach. Semiconductor enterprises from the beginning of the year, the first year to fifth years will be exempt from income tax, from sixth to tenth years will be halved corporate income tax.

June 2000, to encourage China's semiconductor industry and the development of the software industry, the relevant departments have issued a number of "policy" to encourage the development of software industry and integrated circuit, this provision is called No. 18 document, the implementation of Jizhengjitui policy on enterprise VAT: domestic and foreign design the processing of IC products in the import of collection of import value-added tax in accordance with the actual tax burden of more than 6%; 3% part of the domestic IC companies jizhengjitui.

But the policy is under pressure from the United States, Intel and other companies believe that this policy does not comply with the rules of WTO. The policy has been suspended.

In order to encourage more norms of China's semiconductor industry development, the relevant departments to formulate new policy to support the development of the semiconductor industry is expected to be introduced in the second half. In addition to the "five exemptions and five reductions of enterprise income tax preferential policies for the semiconductor industry, including R & D tax (take credit and tax preferential policies, the composite fixed capital equipment) semiconductor integrated circuit design of tax-free and arrange special funds to support etc..

People China Semiconductor Industry Association China also revealed that the government will set up a special fund to support the semiconductor industry, the first year of the scale of investment will reach 12 million to 25 million U.S. dollars, then the funds will expand year by year.

China semiconductor association director Li Ke told reporters, and previously No. 18 corresponding software industry and integrated circuit industry, the introduction of new semiconductor industry policy will be supporting a comprehensive industrial policy for the integrated circuit industry, system.

And No. 18 by the original Commission rushed out, the semiconductor industry the new deal will be developed jointly by the NDRC, the Ministry of Commerce and the State Administration of Taxation and the General Administration of customs, Ministry of finance, the Ministry of information industry and other relevant ministries, the operation will be No. 18 more than.

In addition, Li Ke also revealed that, in order to better motivate the development of domestic semiconductor industry, the new policy committee is in discussions to allow Chinese personnel can hold foreign semiconductor enterprises equity, and after Chinese officials to hold foreign equity, through third party enterprises. This provision is expected to become part of the new deal semiconductor.