(1) Annual wages and salaries of personnel engaged in research and development activities (also known as R&D personnel), including basic wages, bonuses, allowances, subsidies, year-end salary increases, overtime wages, and their employment or employment other relevant expenses.
(2) Direct investment in raw materials and other related expenses purchased by the enterprise for the implementation of research and development projects. Such as: water and fuel (including gas and electricity) usage fees, etc.; used for intermediate testing and product trial production of molds, samples, prototypes and general testing methods that do not meet fixed asset standards, purchase fees, inspection fees for trial products, etc.; used for Simple maintenance fees for instruments and equipment for research and development activities; leasing fees for fixed assets rented under operating leases, etc.
(3) Depreciation expenses and long-term deferred expenses include the depreciation expenses of instruments and equipment purchased for the execution of research and development activities and buildings in use for research and development projects, including the reconstruction, modification, decoration and renovation of R&D facilities. Long-term deferred expenses incurred during repairs.
(4) Design costs include the costs incurred in the conception, development and manufacturing of new products and new processes, as well as the design of processes, technical specifications and operating characteristics.
(5) Equipment debugging fees mainly include expenses incurred in research and development activities during tooling preparation (such as developing and producing machines, molds and tools, changing production and quality control procedures, or formulating new methods and standards, etc. ). Expenses incurred for routine tooling preparation and industrial engineering for large-scale batch and commercial production cannot be included.
(6) Amortization of intangible assets Expenses incurred on proprietary technologies purchased for research and development activities (including patents, non-patented inventions, licenses, proprietary technologies, designs and calculation methods, etc.) Amortization.
(7) Entrusted external research and development expenses refer to the expenses incurred by enterprises entrusting other domestic enterprises, universities, research institutions, transformation institutes, technical professional service institutions and overseas institutions to carry out research and development activities (project results Owned by the enterprise and closely related to the main business of the enterprise). The amount incurred for entrusting external research and development expenses shall be determined in accordance with the arm's length principle.
During the certification process, 80% of the commissioned external research and development expenses will be included in the total R&D expenses. (8) Other expenses include other expenses incurred in research and development activities, such as office expenses, communication fees, patent application and maintenance fees, high-tech R&D insurance premiums, etc. This fee generally shall not exceed 10% of the total research and development costs, unless otherwise specified.
The research and development expenses incurred by an enterprise in China refer to all the actual expenses incurred by the enterprise’s internal research and development activities and those entrusted to domestic enterprises, universities, transformation institutes, research institutions, technical professional service institutions, etc. The total expenses incurred in research and development activities do not include the expenses incurred in research and development activities entrusted to overseas institutions.