Premier Li Keqiang's report on the Work of the Government this year has attracted much attention recently, with most people focusing on the preferential policies of value-added tax and income tax. However, this kind of preferential treatment is mainly for small companies. Large companies should pay more attention to the following preferential treatment: "Continue to implement the additional deduction of enterprise research and development expenses75%Policy to increase the proportion of additional deductions for manufacturing enterprises to100%".
The purpose of this preferential tax policy is to use the preferential tax mechanism to encourage enterprises to increase investment in research and development, and to encourage enterprises to lead development through innovation. In addition, the larger the manufacturers, the more they spend on research and development, the more they will feel the government s determination to encourage independent innovation.
Let's take Midea Group as an example, this year Midea Group announced the third quarter financial results show that: up to the third quarter Midea Group revenue is2177Hundred million, the cost1957(of which, the amount of R&D expenses incurred is67Hundred million) if other factors and expenses are not considered. So Midea Group's profit is220Hundreds of millions.
1.If you do not enjoy the preferential deduction of R&D expenses, the enterprise income tax payable:
2.If additional deduction is made according to the latest research and development expenses of manufacturing enterprises, deduct the proportion100%, then the enterprise income tax payable:
(220-67(additional deduction)*25%=38.25Hundred million
This credit alone can reduce taxes16.75Hundreds of millions.
Therefore, paying full attention to and making reasonable use of Chinese enterprise tax preferential policies can significantly reduce the cost of enterprise tax.
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