Research On Improving The Preferential Tax Policies For China’s Integrated Circuit Industry

As an important part of industrial support policies, preferential tax policy has played a very significant role in promoting the development of integrated circuit industry in China. Currently, China is vigorously promoting the reform of supply side, so it is necessary to continuously improve preferential tax policies for the integrated circuit industry, helping the industry grow and upgrade and giving full play to its leading role in high and new technology to speed up the pace of constructing an innovative country.Firstly, this paper reviews the theory of preferential tax policies and describes three characteristics of the integrated circuit industry, for example, it is of great economic benefits, it has attracted a lot of scientific and technological talents and it has higher investment risks too. Secondly, it introduces the present scale of China’s integrated circuit industry and its challenges. And by summarizing current preferential tax policies on integrated circuit in accordance with tax types from policies of value-added taxes, business taxes, corporate income taxes and customs, it points out that further improvement in the following aspects is needed, for example, the formulation of present preferential tax policies for integrated circuit industry still needs systematic planning, the preferential objects like small and medium-sized enterprises should be given sufficient attention, the preferential scope needs to be expanded, tax incentives for risk compensation should be issued, and tax preferential policies for domestic and foreign capitals should be balanced. Thirdly, it summarizes preferential tax experience which can be used for reference in aspects such as legal basis, preferential contents, the transformation of scientific and technological achievements and small and medium-sized enterprises through the analysis of relevant preferential tax policies for the integrated circuit industry of the United States, Japan, South Korea and Taiwan and other developed countries or regions. Lastly, combined with the above research, this paper puts forward many suggestions for preferential tax policies such as systematically planning preferential tax policies, attaching great importance to preferential tax needs of small and medium-sized enterprises, expanding the scope of the tax preferences, increasing the risk compensation of preferential tax policies and optimizing talent attraction plans.