China Tax Alert: Technology, Media & Telecommunications Focus - Issue 2, August 2013
The State Administration of Taxation (SAT) issued Announcement No. 43 on 25 July 2013. The announcement provides further clarification on scope of eligible software enterprises, assessment criteria and transitional rules with respect to previous and current policies.
Based on Announcement 43, software enterprises that are incorporated before 31 December 2010 but have not been assessed, could enjoy the CIT incentive policies in accordance with Cai Shui  No. 1 (“Cai Shui No. 1”) until the expiration of the incentive period. These enterprises should be assessed under Assessment Criteria and Administration Measures for Software Enterprises (Trial Implementation) (Xin Bu Lian Chan  No. 968, or “Previous Assessment Measures”). We recommend that such enterprises that have not been assessed should carry out self-assessment based on the criteria provided under the Previous Assessment Measures, and apply for qualification assessment on a timely basis, so as to enjoy the relevant CIT incentives.