("ANNOUNCEMENT") (国家税务总局关于执行软件企业所得税优惠政策有关问题的公告), ISSUED BY SAT
The Announcement clarifies several issues relating to the implementation of preferential software enterprise income tax policies, as follows:
- Software companies’ qualifications: The software enterprise income tax preferential policy applies to recognized software enterprises that are charged tax based on their accounting books1. "Recognized" means the software enterprise recognition institutions have recognized the enterprises under relevant provisions, based on these enterprises’ software enterprise recognition management and their software enterprise recognition certificates.
- The "software enterprise’s profit-making year" mentioned in the favorable policy refers to the first taxable year in which the taxable income is greater than zero after a software enterprise begins production and business, including the tax year in which the enterprise income tax is levied by verification. The term during which a software enterprise can benefit from this tax reduction or exemption is calculated consecutively, and cannot be interrupted for profit, loss or other reasons.
Date of issue: July 25, 2013. Effective date: January 1, 2011.