The State Council executive meeting held on March 24 decided to increase the pre-tax super deduction ratio of R&D expenses for enterprises in eligible industries from 75% to 100% as a long-term institutional arrangement. In order to further encourage enterprises to increase investment in R&D and better support technological innovation, the Ministry of Finance and the State Administration of Taxation recently jointly issued the "Announcement on Further Improving the Pre-tax Super Deduction Policy for R&D Expenses" (Announcement No. 7, 2023, of the Ministry of Finance and the State Administration of Taxation) ), clarify issues related to the pre-tax super deduction policy for R&D expenses.
Today I will show you: The scope of R&D expenses that can be super deducted
The scope of R&D expenses that can be super deducted
Applicable entities
In addition to the tobacco manufacturing industry, accommodation and catering industry, wholesale and retail industry, real estate industry, leasing and business service industry, entertainment industry, etc., enterprises in other industries can enjoy it.
Discount content
1. Personnel labor costs. Salaries, basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and housing provident funds for personnel directly engaged in R&D activities, as well as labor costs for external R&D personnel.
2. Direct investment expenses.
(1) Material, fuel and power costs directly consumed by R&D activities.
(2) Development and manufacturing fees for molds and process equipment used for intermediate testing and product trial production, purchase fees for samples, prototypes and general testing methods that do not constitute fixed assets, and inspection fees for trial production products.
(3) Operation, maintenance, adjustment, inspection, repair and other expenses for instruments and equipment used for R&D activities, as well as the rental fees for instruments and equipment rented for R&D activities through operating leases.
3. Depreciation expenses.
Depreciation of instruments and equipment used for research and development activities.
4. Amortization of intangible assets.
Amortization expenses for software, patents, and non-patented technologies (including licenses, proprietary technologies, design and calculation methods, etc.) used for research and development activities.
5. New product design fees, new process procedure formulation fees, clinical trial fees for new drug development, and field test fees for exploration and development technology.
6. Other related expenses.
Other expenses directly related to R&D activities, such as technical book materials fees, data translation fees, expert consulting fees, high-tech R&D insurance premiums, retrieval, analysis, evaluation, demonstration, appraisal, and review of R&D results , evaluation and acceptance fees, intellectual property application fees, registration fees, agency fees, travel expenses, conference fees, employee welfare fees, supplementary pension insurance premiums, and supplementary medical insurance premiums. The total amount of such expenses shall not exceed 10% of the total R&D expenses that can be super-deducted.
Policy Basis
1. "Notice of the Ministry of Finance, State Administration of Taxation and the Ministry of Science and Technology on Improving the Pre-tax Super Deduction Policy for Research and Development Expenses" (Caishui [2015] No. 119)
p>2. "Announcement of the State Administration of Taxation on Issues Concerning the Scope of Pre-tax Super Deduction for R&D Expenses" (No. 40, 2017)