China Provides New Incentives for Integrated Circuit Production Enterprises

China's Ministry of Finance and Ministry of Industry and Information Technology have issued a notice introducing new tax incentives for qualified integrated circuit (IC) production enterprises. For new IC production enterprises or projects established from 1 January 2018, the following incentives are provided:

• A two-year tax exemption from the first year of profitability for IC production of 130-nanometers or narrower and a 50% tax rate reduction for the third to fifth year, provided that t…