More tax-free incentive announced for IC and software companies

China's integrated circuit design and software enterprises will benefit from a new tax-free incentive policy, according to a statement by the Ministry of Finance and State Taxation Administration on Wednesday.

Companies that meet certain requirements will be exempt from income tax in the first and second profit-making years and allowed a 50 percent reduction from the third to fifth years until expiry of the preferential period, which shall start from the first profit-making year prior to December 31, 2018.

The two departments released tax preferential measures to develop software and integrated circuit industries back in 2012, followed by another policy rolled out by four governmental departments in 2016.

These regulations included requirements for enterprises to enjoy the policy, focusing on quality certification and sales revenue.