Mainland Semiconductor Industry Tax Rebate Offered for Three Plants

In response to the 12th Five-Year Plan's policy of strengthening industrial competitiveness, the Ministry of Finance of the Mainland China and the State Administration of Taxation have announced the tax rebate concessions for the semiconductor industry, including equipment tax rebates and rebates, and plans to foster the development of semiconductor and IC industries.

Chen Wenxiao, deputy general manager of Qinye Zhongxin's taxation and business consultancy, stated that the Chinese authorities issued the No. 18 document in 2000 to allow software, ICs, IC design and other industries to enjoy the tax concessions of VAT, that is, Taxes that exceed 3% of the tax can be refunded. At the end of the year, the expiration of the 18th document expired. In January this year, the No. 4 document was issued, extending the past VAT tax preferences.

Chen Wenxiao pointed out that the State Administration of Taxation of the Mainland issued (No. 107 and No. 60) this (11) month, which included the two new policies of the purchase tax refund for purchase equipment and the tax rebate method for “tax rebate” and further increase. Semiconductor industry tax convenience.

Circular 107 stipulates that enterprises may purchase input tax for imported equipment, and may apply for a tax deduction from November this year, and may directly return the tax at the end of the year to solve the problem of the use of VAT input tax for semiconductors caused by long-term purchases of expensive and expensive equipment. Help increase cash flow.

This offer is limited to 29 semiconductor industries, including three Taiwanese companies, including Riyueguang, TSMC and AU Optronics.