According to the Announcement of the Ministry of Industry and Information Technology of State Taxation Administration of The People's Republic of China Development and Reform Commission of the Ministry of Finance on Enterprise Income Tax Policies for Promoting the High-quality Development of Integrated Circuit Industry and Software Industry (Announcement No.45 of State Taxation Administration of The People's Republic of China Ministry of Industry and Information Technology of the Ministry of Finance in 2020): "IV. Key integrated circuit design enterprises and software enterprises encouraged by the state shall be exempted from enterprise income tax from the first year to the fifth year, and enterprise income tax shall be levied at a reduced rate of 10% in subsequent years.

The list of key integrated circuit design and software enterprises encouraged by the state shall be formulated by the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, State Taxation Administration of The People's Republic of China and other relevant departments.