Multiple Departments: To compile a list of integrated circuit enterprises or projects and software enterprises that will enjoy tax incentives by 2025.

On April 1st, the National Development and Reform Commission and other departments issued a notice regarding the formulation of a list of integrated circuit companies or projects and software companies that will enjoy tax incentives in 2025. The notice will be implemented from the date of issuance and will apply to companies that qualify for the preferential tax policies for corporate income tax in 2024, the import tax policies specified in document [2021] No. 4 of the State Administration of Taxation, and the R&D expense deduction policy mentioned in the announcement. The original text is as follows: Notice from the National Development and Reform Commission and other departments regarding the formulation of a list of integrated circuit companies or projects and software companies that will enjoy tax incentives in 2025 Development and Reform High-Tech [2025] No. 385 To development and reform commissions of provinces, autonomous regions, municipalities directly under the Central Government, planned municipalities, Xinjiang Production and Construction Corps, industrial and information technology authorities, and finance departments (bureaus), Guangdong Branch of the General Administration of Customs, all subordinate customs, tax bureaus of provinces, autonomous regions, municipalities directly under the Central Government, planned municipalities: In order to promote the continuous and healthy development of China's integrated circuit and software industries, in accordance with the Notice of the State Council on Printing and Distributing Several Policies to Promote the High-Quality Development of the Integrated Circuit and Software Industries in the New Period (referred to as "Several Policies") and related supporting policies, as well as the Announcement by the Ministry of Finance, State Administration of Taxation, National Development and Reform Commission, and Ministry of Industry and Information Technology on Increasing the Deduction Ratio of R&D Expenses for Integrated Circuit and Industrial Mother Machine Enterprises (referred to as "Announcement"), after research, we hereby notify relevant matters regarding the formulation of a list of integrated circuit companies or projects and software companies that will enjoy tax incentives in 2025 (referred to as "list"). 1. The "list" mentioned in this notice refers to the list of national encouraged integrated circuit production companies or projects with line widths less than 28 nanometers (inclusive), less than 65 nanometers (inclusive), and less than 130 nanometers (inclusive) mentioned in Article (1) of the "Several Policies"; the key integrated circuit design companies and software companies encouraged by the country mentioned in Articles (3), (6), (7), and (8) of the "Several Policies" and the "Notice of the Ministry of Finance, General Administration of Customs, State Administration of Taxation on Supporting the Import Tax Policies for the Development of the Integrated Circuit and Software Industries" (No. 4 of [2021]), and the "Notice of the Ministry of Finance, National Development and Reform Commission, Ministry of Industry and Information Technology, General Administration of Customs, State Administration of Taxation on the Management Measures for Supporting Import Tax Policies for the Development of the Integrated Circuit and Software Industries" (No. 5 of [2021]). The list includes key materials and components (target materials, photoresists, masks, packaging substrates, polishing pads, polishing liquids, silicon wafers of 8 inches and above) production companies of the integrated circuit industry, major projects and construction companies in the integrated circuit industry; and the list of companies or projects affiliated with the national encouraged integrated circuit production companies or projects, and the list of national encouraged integrated circuit design companies mentioned in the "Announcement". 2. Companies that were on the list in 2024 and wish to enjoy the new year's tax incentives (excluding the phased payment policy for value-added tax in the import stage) in 2025 must reapply. Companies applying to be included in the list should submit their applications on the Information Reporting System (https://yyglxxbs.ndrc.gov.cn/xxbs-front/) from March 31st to April 18th, 2025, and generate paper documents stamped with the company seal, along with necessary supporting materials (electronic and paper versions) to their provincial, autonomous region, municipality directly under the Central Government, planned municipality, Xinjiang Production and Construction Corps Development and Reform Commission or industrial and information authorities (receiving units designated by the local development and reform commissions). Audited company financial reports must be submitted with the application. 3. Based on the company's conditions and project standards (attached), local development and reform commissions and industrial and information technology departments will preliminarily review and submit the information provided by the companies to the National Development and Reform Commission and Ministry of Industry and Information Technology. The list of key materials and components production companies in the integrated circuit industry mentioned in Articles (1), (3), (6), (7) of the "Several Policies" and in document No. 4 of [2021] on import tax policies will be jointly reviewed and confirmed by the National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, General Administration of Customs, and State Administration of Taxation. The list of major projects in the integrated circuit industry mentioned in Article (8) of the "Several Policies" will be formed by the National Development and Reform Commission and the Ministry of Industry and Information Technology and then reported to the Ministry of Finance for final confirmation in collaboration with the General Administration of Customs and the State Administration of Taxation. The list of companies or projects affiliated with the national encouraged integrated circuit production companies or projects and the list of national encouraged integrated circuit design companies mentioned in the "Announcement" will be jointly reviewed and confirmed by the National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, and State Administration of Taxation before being jointly issued. 4. Companies included in the list can determine if they meet the conditions when making their advance corporate income tax declaration for the next year. If they meet the conditions, they can enjoy the benefits at the time of the advance declaration, and if they are not included in the next year's list at the annual settlement and payment, they must make the required tax payments without any late fees. Companies applying to enjoy the tax incentives mentioned in Articles (1), (3), (6), (7) of the "Several Policies", the customs duty incentives mentioned in document No. 4 of [2021], and the R&D expense deduction policy mentioned in the "Announcement" can check if they are included in the list through the Information Reporting System before the annual settlement and payment is completed. Companies benefiting from the incentives mentioned in Article (8) of the "Several Policies" will be informed by the local customs at the location of the enterprise. 5. Companies or projects that have already enjoyed the tax incentives mentioned in Articles (1), (3), (6), (7) of the "Several Policies", the customs duty incentives mentioned in document No. 4 of [2021], and the R&D expense deduction policy mentioned in the "Announcement", and that undergo name changes, separations, mergers, reorganizations, or significant changes in their main business, should promptly report to the local development and reform commissions and industrial and information technology departments and submit the significant changes in the enterprise form and relevant materials to the National Development and Reform Commission within 60 days of completing the registration of changes.National Development and Reform Commission, Ministry of Industry and Information Technology (the date of the document submitted by provincial departments shall prevail). The National Development and Reform Commission, Ministry of Industry and Information Technology, together with relevant departments, will determine whether enterprises or projects that have undergone changes continue to meet the conditions or standards for enjoying preferential policies.Six, the local development and industrial information departments, together with the financial, customs, and tax departments, will strengthen daily supervision of enterprises listed in the inventory. During the supervision process, if it is found that an enterprise has obtained eligibility for tax reduction or exemption by falsely reporting information, a joint verification should be conducted in a timely manner, and a joint report should be submitted to the National Development and Reform Commission and the Ministry of Industry and Information Technology for reexamination. After the reexamination by the National Development and Reform Commission and the Ministry of Industry and Information Technology, for enterprises or projects that do not meet the conditions and standards for enjoying preferential policies, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation should be notified to handle them in accordance with relevant regulations. Seven, enterprises are responsible for the authenticity of the materials and data provided. Applying enterprises should sign a commitment letter, promising that in case of dishonest behavior in the declaration, they will accept the relevant departments' handling in accordance with laws, regulations, and relevant national provisions. Information on illegal activities will be recorded in the credit records of enterprises, included in the national credit information sharing platform, and published on the "Credit China" website. Eight, this notice shall be implemented from the date of issuance and apply to enterprises enjoying the preferential corporate income tax policies for the year 2024 and the import tax policies stipulated in the document "Caifinshui [2021] No. 4", as well as the research and development expenditure additional deduction policy mentioned in the "Announcement". The National Development and Reform Commission, together with relevant departments, will adjust the conditions or standards for enterprises or projects eligible for preferential policies in a timely manner according to industrial development, technological progress, and other circumstances. National Development and Reform Commission Ministry of Industry and Information Technology Ministry of Finance General Administration of Customs State Administration of Taxation March 27, 2025 This article is excerpted from the National Development and Reform Commission, GMTEight Editor: Chen Wenfang. (Note: Some terms may not have an exact equivalent in English)