China mandates new tax breaks for chip and software firms

China's government is updating its list of companies eligible for tax breaks on chips and software. This means companies that want these tax benefits for 2026 must reapply, even if they got them last year.

This is an administrative update to an existing policy. It clarifies which companies and projects qualify for tax incentives aimed at boosting China's domestic semiconductor and software industries. The process requires companies to reapply annually, ensuring that the government can track and potentially adjust its support for these strategic sectors. It's a signal that China continues to prioritize these industries through financial incentives.