The meeting of the State Council’s Standing Committee on 8 May 2019 centred on two main topics: enhancing the innovative development of national economic development zones; and extending the preferential corporate income tax policy for enterprises operating in integrated circuits and software.
Concerning the first topic, the meeting highlighted the importance of further delegating authority to the local management committees, in order to shorten investment approval procedures and optimise the business environment: specifically, the number of new investments approved will be now considered as a new KPIs for local committees. Economic development zones should also be on the front line of fully implementing or piloting national policies, particularly in terms of incentives and bonuses for technology transfer from research institutes to enterprises. Finally, economic development zones should increase the presence within the zone of private enterprises and foreign entities (enterprises, research structure, and capital), from foreign countries as well as from Hong Kong and Macao. Comprehensive bonded zones will be supported within economic development zones.
The meeting has also agreed to extend the current preferential tax policy (Several Policies for Further Encouraging the Development of the Software and Integrated Circuit Industries) for software and IC enterprises: exemption of the corporate income tax (CIT) for the first two years, and 50% reduction for the following three years. This applies to any software or IC enterprise (including foreign-invested).
MOF’s Notice on Increasing the Proportion of Pre-tax Deduction for R&D expenditure (Cai Shui  No. 99)