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Analysis on policy of additional deduction of R&D expenses

Released Date: Dec 18,2020 Article Source: HUANZE
Our country has been encouraging enterprises to carry out research and development. In 2018, the state introduced more favorable policies to encourage enterprises to carry out research and development, and issued the Notice on Increasing the Proportion of Pre-tax Plus Deduction of research and Development Expenses (Finance and Taxation [2018] No. 99), which stipulates: If the R&D expenses actually incurred in the R&D activities of an enterprise do not form intangible assets and are included in the current profit and loss, on the basis of actual deduction according to regulations, 75% of the actual amount will be deducted before tax during the period from January 1, 2018 to December 31, 2020; If intangible assets are formed, 175% of the cost of intangible assets shall be amortized before tax during the above-mentioned period.

Our country has been encouraging enterprises to conduct research and development, in2018In 2005, the state introduced more favorable policies to encourage enterprises to carry out research and development, and issued the Notice on Increasing the Proportion of pre-tax plus deduction of research and development Expenses2018:99(), which provides that: if the R&D expenses actually incurred in the development activities of an enterprise have not been recorded into the current profit or loss as intangible assets, they shall be deducted according to the provisions and on the basis of actual deduction2018years1month1sunrise2020years12month31During the day, in accordance with the actual amount75%Add a deduction before tax; If intangible assets are formed, the cost of intangible assets shall be applied during the above-mentioned period175%Amortization before tax.

If an enterprise wants to enjoy the preferential policy, it needs to know clearly how to enjoy the preferential policy.

First of all, if the enterprise needs to do the following in accounting:

1Separate accounting. If the enterprise has not established a special research and development institution or the enterprise research and development institution concurrently undertakes production and operation tasks, the research and development expenses and production and operation expenses shall be accounted separately.

2Special account management. Enterprises must implement special account management of research and development expenses.

3Itemized collection. If an enterprise conducts multiple research and development activities in a single tax year, the amount of research and development expenses that can be deducted shall be collected separately according to different development projects.

4Reasonable calculation. The enterprise shall calculate the expenses of research and development accurately and reasonably, and shall not add up or deduct the expenses if the division is not clear.

5Fill in the form accurately. Enterprises need to116The specified items in the schedule shall be accurately collected and filled in the actual amount of the annual research and development expenses that can be deducted.

In addition, in terms of the collection of expenses, only the expenses listed below can be counted into the R&D expenses:

1, new product design fee, new process regulation formulation fee and technical books and materials translation fee directly related to research and development activities.

2, materials, fuel and power costs directly consumed by R&D activities.

3, wages, salaries, bonuses, allowances and subsidies of in-service personnel directly engaged in R&D activities.

4, depreciation or rental of instruments and equipment used specifically for research and development activities.

5And amortization expenses of intangible assets such as software, patent rights and non-patented technologies exclusively used for research and development activities.

6Die, process equipment development and manufacturing expenses specially used for intermediate test and product trial production.

7Fees for field testing of exploration and development technologies.

8Expenses for demonstration, review and acceptance of R&D achievements.

Note: Only the expenses specifically used for research and development listed above can be collected into the research and development expenses and enjoy the preferential policy of pre-tax deduction of research and development expenses given by the state.

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