Notice of the National Development and Reform Commission and Other Departments on Doing a Good Job in Formulating the List of Integrated Circuit Enterprises or Projects Enjoying Tax Preferential Policies and Software Enterprises for 2025 (Document No. [Gao Ji] (2025) 385)

To the Development and Reform Commissions, Departments of Industry and Information Technology, and Finance Departments (Bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, cities divided into districts, and the Xinjiang Production and Construction Corps; to the Guangdong Branch of the General Administration of Customs, all direct customs districts; and to the State Taxation Administrations of all provinces, autonomous regions, municipalities directly under the Central Government, and cities divided into districts:

To promote the sustained and healthy development of China's integrated circuit (IC) and software industries, in accordance with the "Notice on Issuing Several Policies for Promoting High-Quality Development of the IC and Software Industries in the New Era" issued by the State Council (hereinafter referred to as the "Several Policies") and its supporting policies, as well as the provisions of the "Announcement on Increasing the Super Deduction Ratio for R&D Expenses of IC and Industrial Mother Machine Enterprises" jointly issued by the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission, and the Ministry of Industry and Information Technology (hereinafter referred to as the "Announcement"), we hereby notify the following matters regarding the compilation of the list of IC enterprises or projects and software enterprises eligible for tax incentives in 2025 year (hereinafter referred to as the "List").

1. The term "list" in this notice refers to the list of integrated circuit (IC) production enterprises or projects encouraged by the state, as mentioned in Article 1 of the "Several Policies," with line widths of less than 28 nanometers (inclusive), less than 65 nanometers (inclusive), and less than 130 nanometers (inclusive); the list of key IC design enterprises and software enterprises encouraged by the state, as mentioned in Articles 3, 6, 7, and 8 of the "Several Policies," and in the "Notice on Import Tax Policies Supporting the Development of the IC and Software Industries" (Cai Guan Shui [Year 2021] No. 4), and the "Administrative Measures for Import Tax Policies Supporting the Development of the IC and Software Industries" (Cai Guan Shui [Year 2021] No. 5); the list of logic circuit and memory production enterprises with line widths of less than 65 nanometers (inclusive), specialty process IC production enterprises with line widths of less than 0.25 micrometers (inclusive), compound IC production enterprises and advanced packaging and testing enterprises with line widths of less than 0.5 micrometers (inclusive), key raw material and component (target materials, photoresists, masks, substrate boards, polishing pads, polishing slurries, 8-inch and larger silicon single crystals, 8-inch and larger silicon wafers) production enterprises, major IC projects and their contractors; and the list of IC production enterprises or projects and their parent companies, as well as the list of IC design enterprises, all encouraged by the state as mentioned in the "Announcement."

II. Enterprises included in the list for 2024 that wish to avail themselves of new tax incentives for the upcoming year (excluding the import VAT installment payment policy) must reapply in 2025. Companies applying to be added to the list should submit their applications via the information reporting system between 2025 3 31 and 4 18, generate a hard copy, affix the company seal, and submit it along with required supporting documents (both electronic and paper versions) to the local Development and Reform Commission or Industry and Information Technology Department of the province, autonomous region, municipality directly under the Central Government, planned single city, or Xinjiang Production and Construction Corps (the specific receiving unit is designated by the local Development and Reform Commission). Audited financial statements must be submitted concurrently with the application.

3. Local development and reform commissions and industrial and information technology departments shall conduct an initial review of enterprise submissions based on the specified criteria (see attached). Upon approval, they shall forward the applications to the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT). The list of key raw material and component manufacturers for the integrated circuit industry mentioned in Articles I, III, VI, and VII of the "Several Policies," as well as Document Cai Guanshui [ 2021 ] No. 4, shall be jointly reviewed and issued by the NDRC, MIIT, Ministry of Finance, General Administration of Customs, and State Taxation Administration. Major integrated circuit projects referenced in Article VIII of the "Several Policies" shall be listed by the NDRC and MIIT, then formally communicated to the Ministry of Finance, which will finalize the list in coordination with the General Administration of Customs and the State Taxation Administration. The list of state-favored integrated circuit manufacturing enterprises or affiliated projects, as well as the list of state-favored integrated circuit design enterprises mentioned in the "Announcement," shall be jointly reviewed and issued by the NDRC, MIIT, Ministry of Finance, and State Taxation Administration.

4. Enterprises listed on the roster may self-assess their eligibility when filing provisional corporate income tax returns for the following year. If eligible, they may claim the tax benefits during the provisional filing; if not included in the next year's roster upon annual reconciliation, they shall pay the owed taxes as required, without late fees or penalties. To claim tax incentives under Articles (1), (3), (6), and (7) of the "Several Policies," customs duty incentives referenced in Customs Tariff Document No. 2021 4, and R&D expense super deduction policies outlined in the Announcement, enterprises may query the information reporting system to confirm their listing status before the end of the annual reconciliation period. For enterprises benefiting from the policy under Article (8) of the "Several Policies," the relevant local direct customs authority will notify them accordingly.

5. Enterprises or projects that have already benefited from the tax incentive policies mentioned in Articles (1), (3), (6), and (7) of the "Several Policies," the tariff incentive policy referenced in Document [财关税〔2021〕4], or the R&D expense super-deduction policy outlined in the "Announcement" must promptly report any changes—including name changes, splits, mergers, reorganizations, or significant shifts in core business activities—to local development and industry authorities. Within 60 days of completing the registration change, these enterprises must submit the Enterprise Major Change Report and supporting documents to the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT). The submission deadline is based on the date stamped on the forwarding document by the provincial authority. The NDRC and MIIT, in coordination with relevant departments, will determine whether the enterprise or project continues to qualify for the preferential policies following such changes.

6. Local development and reform authorities, along with industry and information technology departments, shall strengthen routine supervision of enterprises on the list in coordination with finance, customs, and tax authorities. If any enterprise is found to have obtained tax reduction or exemption qualifications through false reporting during supervision, a joint investigation shall be conducted promptly, and the findings shall be jointly reported to the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) for verification. After reviewing with relevant departments, the NDRC and MIIT will formally notify the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration to take appropriate actions in accordance with relevant regulations against enterprises or projects that do not meet the eligibility criteria or standards for preferential policies.

7. Enterprises are responsible for the accuracy and authenticity of the materials and data provided. Declaring enterprises must sign a commitment letter stating that if any dishonest behavior occurs during the declaration, they will accept handling by relevant authorities in accordance with laws, regulations, and national provisions. Information involving illegal activities shall be recorded in the enterprise's credit record, included in the National Credit Information Sharing Platform, and published on the "Credit China" website.

8. This notice shall take effect on the date of issuance and apply to corporate income tax preferential policies for enterprises during the 2024 fiscal year, import tax policies stipulated in Cai Guan Shui [202021] No. 4, and the R&D expense super-deduction policy mentioned in the Announcement. The National Development and Reform Commission and the Ministry of Industry and Information Technology, in coordination with relevant departments, will periodically adjust the eligibility criteria for enterprises or project standards based on industry development and technological advancements.

Attachment:

1. Enterprise conditions and project standards for enjoying tax incentive policies

2. Focus on key areas of integrated circuit design and software

3. List of Documents Submitted by Integrated Circuit Enterprises, Projects, and Software Enterprises Enjoying Tax Incentives

4. Significant Corporate Changes Table

National Development and Reform Commission

Ministry of Industry and Information Technology

Ministry of Finance

General Administration of Customs

State Taxation Administration

2025-3-27

Attachment 1: Conditions and Standards for Enterprises Eligible for Tax Incentives

1. The tax incentive eligibility conditions for integrated circuit (IC) production enterprises or projects with line widths under 28 nm (inclusive), under 65 nm (inclusive), and under 130 nm (inclusive), as referenced in Section 1 of the "Several Policies," as well as for IC production enterprises or their parent companies mentioned in the "Announcement" that are nationally encouraged, are as follows:

(1) Enterprises legally registered within China (excluding Hong Kong, Macao, and Taiwan regions) with independent legal person status.

(II) Complies with national layout planning and industrial policies;

(3) During the annual tax reconciliation year, enterprises must have employees under labor contracts, labor dispatch, or employment agreements. The proportion of monthly average employees with a bachelor's degree or higher shall be no less than 30% of the total monthly average workforce, and the proportion of monthly average R&D personnel shall be no less than 20% (no less than 15% for those engaged in producing integrated circuits of 8 inches or smaller).

(4) The enterprise possesses key core technologies and intellectual property rights owned by it, and conducts business operations based on these. Additionally, the total amount of research and development expenses declared in the annual tax settlement must account for no less than 2% of the enterprise's total sales (operating) revenue (sum of main operating income and other operating income). This requirement, along with the following R&D expense policies, shall be implemented in accordance with the provisions of the "Notice of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Science and Technology on Improving the Policy of Pre-tax Additional Deduction for Research and Development Expenses" (Cai Shui [Year 2015] No. 119) and the "Announcement of the State Administration of Taxation on Issues Concerning the Collection Scope of Pre-tax Additional Deduction for Research and Development Expenses" (State Administration of Taxation Announcement Year 2017, No. 40).

(5) The proportion of the integrated circuit manufacturing sales (operating) revenue to the enterprise's total revenue in the annual final settlement shall not be less than 60%.

(6) Possess the means and capability to ensure production of products with specified process line widths;

(7) No major safety incidents, major quality accidents, or serious environmental violations occurred during the tax reconciliation year;

(8) For tax incentives applicable to integrated circuit (IC) manufacturing projects, the project entity must meet the qualification requirements for IC manufacturers and be able to maintain separate accounting records for the project, calculate its taxable income independently, and reasonably allocate period expenses.

II. In addition to meeting the criteria for nationally encouraged integrated circuit design enterprises as stipulated in Announcement No. 2021 of 9 issued by the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, and the State Administration of Taxation, the conditions outlined in Articles (3) and (7) of the "Several Policies" and those referenced in the "Announcement" must also satisfy the following requirements:

(1) For the tax settlement year, the enterprise must have employees under labor contracts or dispatched employment arrangements. The proportion of employees with a bachelor's degree or higher in the monthly average headcount shall be at least 50%, and the proportion of research and development personnel in the total monthly average headcount shall be at least 40%.

(2) Possesses key core technologies and conducts business based on them, with the total R&D expenses for the annual tax settlement accounting year constituting at least 7% of the enterprise's total sales (operating) revenue (sum of main business income and other operating income).

(3) The proportion of sales (operating) revenue from integrated circuit design (including EDA tools, IP, and design services, hereinafter the same) to the enterprise's total revenue in the annual settlement year shall be no less than 70%, among which the proportion of sales (operating) revenue from independently designed integrated circuits to the enterprise's total revenue shall be no less than 60%. For enterprises with sales (operating) revenue from integrated circuit design exceeding 50 billion yuan, the proportion of sales (operating) revenue from integrated circuit design to the enterprise's total revenue in the annual settlement year shall be no less than 60%, among which the proportion of sales (operating) revenue from independently designed integrated circuits to the enterprise's total revenue shall be no less than 50%.

(4) The enterprise must possess core critical technologies and intellectual property rights. It shall hold a total of at least 8 authorized invention patents (where the enterprise is the first right holder), layout design registrations, and computer software copyrights related to integrated circuit product design.

In addition to the above conditions, at least one of the following must also be met:

(I) For the annual settlement and finalization year, sales (operating) revenue from integrated circuit design must be at least 5 billion yuan, and taxable income must be at least 3000 million yuan. For enterprises with sales (operating) revenue from integrated circuit design of at least 50 billion yuan, the taxable income requirement may be waived, provided that total R&D expenses account for no less than 8% of total sales (operating) revenue (the sum of main business revenue and other business revenue).

(2) Within the key integrated circuit (IC) design fields encouraged by the State (see Attachment 2), the IC design sales revenue for the annual settlement year must be at least 3000 ten thousand yuan, and the taxable income must be at least 350 ten thousand yuan.

3. For the tax incentive conditions applicable to key software enterprises endorsed by the State as referenced in Sections (3) and (7) of the "Several Policies," in addition to meeting the criteria for state-endorsed software enterprises outlined in Announcement No. 2021 of 10 issued by the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, and the State Taxation Administration, such enterprises must also satisfy at least one of the following conditions:

(1) Enterprises developing basic professional software, industrial software for R&D and design, or artificial intelligence software (specific domains are detailed in Attachment 2, hereinafter the same): The total revenue from software product development, sales, and related information technology services during the annual tax reconciliation year shall not be less than 5000 million yuan. (Relevant IT services refer to consulting, design, software maintenance, and data services directly enabling software product functions.) Additionally, the ratio of total R&D expenses to total sales (operating) revenue during the annual tax reconciliation year shall not be less than 7%.

 (2) For enterprises engaged in the professional development and production of industrial software for production control, emerging technology software, and information security software: the annual revenue from software product development, sales, and related IT services (operating income) during the tax reconciliation year shall not be less than 1 billion yuan; the taxable income shall not be less than 500 ten thousand yuan; the proportion of average monthly R&D personnel to the average total monthly workforce shall not be less than 30% ; and the ratio of total R&D expenses during the tax reconciliation year to total sales (operating) revenue shall not be less than 8%.

 (3) Enterprises engaged in professional development of key application software, industrial management and operation software, public cloud service software, or embedded software must meet the following requirements for the annual tax reconciliation year: software product development and sales revenue and related information technology service (operating) revenue shall not be less than 5 billion yuan; taxable income shall not be less than 2500 ten thousand yuan; the proportion of average monthly R&D personnel to the total average monthly workforce shall not be less than 30%; and the proportion of total R&D expenses to total sales (operating) revenue shall not be less than 7%.

4. The following tax incentive conditions apply to logic circuit and memory manufacturers with integrated circuit line widths of 65 nanometers (nm) or less, specialty process IC manufacturers with line widths of 0.25 micrometers (μm) or less, compound semiconductor IC manufacturers with line widths of 0.5 μm or less, and producers of key raw materials and components (target materials, photoresists, masks, substrate carriers, polishing pads, polishing slurries, 8-inch and larger silicon single crystals, 8-inch and larger silicon wafers) for the IC industry as referenced in Caishui Document [2021] No. 4:

(1) Enterprises legally registered within China (excluding Hong Kong, Macao, and Taiwan regions) with independent legal person status.

(II) Complies with national layout planning and industrial policies;

(3) Possess the means and capability to ensure product production.

(4) No major safety incidents, major quality accidents, or serious environmental violations occurred during the tax settlement year.

5. The eligibility criteria for advanced packaging and testing enterprises to enjoy tax incentives under Article 6 of the "Several Policies" are as follows:

(1) Enterprises legally registered within China (excluding Hong Kong, Macao, and Taiwan regions) with independent legal person status.

(II) Complies with national layout planning and industrial policies;

(3) For the annual final settlement, the planned capacity for enterprise advanced packaging and testing (wafer-level packaging, system-level packaging, 2.5-dimensional packaging, and 3-dimensional packaging) shall account for no less than 40% of total planned capacity, calculated by the number of packaged product dies or wafers (converted to 8-inch equivalents).

(4) Possess the means and capability to ensure product manufacturing.

(5) No major safety incidents, quality accidents, or serious environmental violations occurred during the tax reconciliation year.

6. For the tax incentives referenced in Section 8 of the "Several Policies," in addition to the implementing enterprise meeting the corresponding requirements specified in Sections 4 and 5 of this Notice, the project must also satisfy at least one of the following conditions:

(I) Major chip manufacturing projects must meet all of the following conditions:

1. Complies with national layout planning and industrial policies;

2. For chip manufacturing projects with different process types, the following conditions must be met separately:

For logic circuit and memory projects with process node widths less than or equal to 65 nm, the total fixed asset investment must exceed 80 billion yuan, and the planned monthly capacity must surpass 1 million wafers (equivalent to 12-inch).

(2) For special chip manufacturing projects including analog, mixed-signal, high-voltage, RF, power, optoelectronic integration, image sensing, MEMS, and SOI processes with a process line width of less than 0.25 micrometers (inclusive), the total fixed asset investment must exceed 10 billion yuan, and the planned monthly capacity must exceed 1 million wafers (equivalent to 8-inch).

For compound integrated circuit manufacturing projects with process line widths of 0.5 micrometers or less, the total fixed asset investment must exceed 10 billion yuan, and the planned monthly capacity must surpass 1 million wafers (equivalent to 6-inch).

(II) Major projects in advanced packaging and testing must meet all of the following conditions:

1. Complies with national layout planning and industrial policies;

2. Total fixed-asset investment exceeds 10 billion yuan.

3. Packaging capacity planning for the target year exceeds 10 billion chips or 50 million wafers (equivalent to 8 inches).

Attachment 2: Key Integrated Circuit Design Areas and Key Software Areas

1. Key Integrated Circuit Design Areas

If your business scope covers multiple areas, select only one area for the application. The sales (operating income) from the selected area must account for at least 50% of your enterprise's total IC design sales (operating income).

(1) High-performance processors and FPGA chips;

(II) Memory Chips;

(3) Smart Sensors;

(4) Industrial, communication, automotive, and security chips;

(5) EDA, IP, and Design Services.

II. Key Software Areas

If your business spans multiple domains, select only one domain for application. The proportion of software product development and related information technology service sales (operating) revenue in the selected domain to the enterprise's total software product development and related IT service sales (operating) revenue must be at least 50%. Related IT services refer to consulting, design, software operations and maintenance, and data services directly supporting the functions of the selected software products. The enterprise must hold no fewer than 2 invention patents as the first rights holder in the selected domain, and possess no fewer than 2 computer software copyright registration certificates in that domain (all accompanied by corresponding test reports).

(I) Basic Software: Operating Systems (including industrial OS), database management systems, middleware, general-purpose office software, firmware (BIOS), development support tools, and editing/processing software for minority languages.

(2) R&D Design Industrial Software: Virtual Simulation Systems, Computer-Aided Design (CAD), Computer-Aided Engineering (CAE), Computer-Aided Manufacturing (CAM), Computer-Aided Process Planning (CAPP), Building Information Modeling (BIM), and Product Data Management (PDM) software.

(III) Artificial Intelligence Software: Human-Computer Interaction, General-Purpose Algorithm Software, Basic Algorithm Libraries, Toolchains, Machine Learning, Knowledge Graphs, Deep Learning Frameworks, Natural Language Processing Software, Intelligent Speech, Computer Vision, and General-Purpose and Industry-Specific Large Models.

(4) Production Control Industrial Software: Industrial Control Systems (ICS), Manufacturing Execution Systems (MES), Manufacturing Operations Management (MOM), Scheduling Optimization Systems (ORION), Advanced Process Control (APC), Distributed Control Systems (DCS), Supervisory Control and Data Acquisition (SCADA), Safety Instrumented Systems (SIS), Programmable Logic Controllers (PLC).

(5) Emerging Technology Software: Big data software (distributed computing, data analysis and mining, visualization, data collection and cleaning), information system operation and maintenance software, supercomputing software, blockchain software, industrial internet platform software, cloud management software, and virtualization software.

(6) Information Security Software: Software for information system security, network security, cryptographic algorithms, data security, and security testing.

(7) Key Industry Application Software: Specialized application software for government agencies, national defense, energy, transportation, logistics, telecommunications, broadcasting and television, healthcare, construction, manufacturing, emergency response, social security, agriculture, water conservancy, education, finance and taxation, intellectual property, inspection and testing, scientific research, public safety, environmental protection and energy conservation, natural resources, urban management, and geographic information.

(VIII) Industrial Software for Business Management: Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM), Human Resource Management (HRM), Enterprise Asset Management (EAM), Product Lifecycle Management (PLM), Maintenance, Repair, and Operations (MRO) software, and related cloud services.

 (IX) Public Cloud Service Software: Large-scale public cloud IaaS and PaaS service software.

(10) Embedded Software (Software revenue must be at least 50%): Communication equipment, automotive electronics, traffic monitoring devices, electronic measurement instruments, equipment automatic control systems, electronic medical devices, computer application products, terminal devices, and related embedded software development environments.

(The scope of the above software terminology may refer to the national standard GB/T 36475 Classification of Software Products.)

Attachment 3 – Detailed Submission List for Integrated Circuit Enterprises, Projects, and Software Enterprises Enjoying Tax Preferential Policies

Note: The above enterprise types and material lists are based on State Council Document No. 2020 (8) and the "Announcement." For material templates, please contact the provincial Development and Reform Commission (or industry and information technology competent department). For submission instructions, refer to the information submission system.

Attachment 4: Enterprise Major Change Report

Original Company Information

Note: Attach scanned copies of the old and new business licenses (copies) for the legal representative, along with legally binding supporting documents demonstrating the changes and any other explanatory materials required by the provincial Development and Reform Commission (or industry and information technology department). Enterprise information after the change.