The latest good news about the super deduction policy for research and development expenses is sorted out for you! Pre-tax deductions to support scientific and technological innovation have been increased! (Ministry of Finance, State Administration of Taxation, Ministry of Science and Technology Announcement No. 28, 2022), take this opportunity, Let me take you to sort out the latest super deduction policy for R&D expenses! 1. The policy basically stipulates that R&D expenses incurred by an enterprise to develop new technologies, new products, and new processes, and that have not formed intangible assets, are included in the current period. For profits and losses, on the basis of actual deductions, an additional deduction will be made based on a certain proportion of research and development expenses. 2. Different enterprises are applicable to different super deduction ranges. For general enterprises, 175% or 175%. If no intangible assets are formed from January 1, 2018 to September 30, 2022 and are included in the current profits and losses, the deduction will be based on the actual deduction according to regulations. During the above period, an additional pre-tax deduction of 75% of the actual amount will be made. If intangible assets are formed, they will be amortized before tax at 175% of the intangible assets during the above period. General enterprises 2100% or 200%. If no intangible assets are formed from October 1, 2022 to December 31, 2022 and included in the current profits and losses, they will be deducted according to regulations from October 1, 2022 to December 31, 2022. During the period of December 31, 100% of the actual amount will be deducted before tax. If intangible assets are formed, they will be amortized before tax at 200% of the intangible assets from October 1, 2022 to December 31, 2022. If 100% or 200% of the intangible assets of manufacturing enterprises have not been included in the current profits and losses since January 1, 2021, on the basis of actual deductions in accordance with regulations, starting from January 1, 2021, the actual amount will be 100% plus deduction before tax. If intangible assets are formed, they will be amortized before tax at 200% of the intangible assets starting from January 1, 2021. If 100% or 200% of the intangible assets of technology-based small and medium-sized enterprises have not been included in the current profits and losses since January 1, 2022, on the basis of actual deductions in accordance with regulations, starting from January 1, 2022, the actual amount incurred will be 100% of the total is deducted before tax. If intangible assets are formed, they will be amortized before tax at 200% of the intangible assets from January 1, 2022. 3. Industries to which super deduction is not applicable Tobacco manufacturing industry Accommodation and catering industry Wholesale and retail industry Real estate industry leasing and business services industry Entertainment industry 4. Activities to which super deduction is not applicable 1. Routine upgrade of enterprise products (services); 2. The direct application of a certain scientific research result, such as the direct use of public new processes, materials, devices, products, services or knowledge, etc.; 3. The technical support activities provided by the enterprise to customers after commercialization; 4. The application of existing products, services, technologies , repeated or simple changes in materials or processes; 5 market survey research, efficiency survey or management research; 6 as an industrial (service) process link or routine quality control, test analysis, repair and maintenance; 7 social sciences, art or humanities Studies in literature. 5. Declaration and Enjoyment Time When enterprises prepay in October and declare corporate income tax for the third quarter (quarterly prepayment) or September (monthly prepayment), they can choose to enjoy the preferential super deduction policy for R&D expenses in the first three quarters of the year. Those who do not choose to enjoy the preferential policy of super deduction of R&D expenses during the prepayment declaration period in October can enjoy it during the final settlement period of the following year. 6. Scope of aggregation of R&D expenses 1. Personnel labor expenses include wages and salaries of personnel directly engaged in R&D activities, basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and housing provident funds, as well as external R&D Personnel labor costs. 2. Direct investment costs include materials, fuel and power costs directly consumed by R&D activities; development and manufacturing costs of molds, process equipment used for intermediate testing and product trial production, purchase costs for samples, prototypes and general testing methods that do not constitute fixed assets, and trial production costs. Product inspection fees; operation and maintenance, adjustment, inspection, repair and other expenses for instruments and equipment used for R&D activities, as well as rental fees for instruments and equipment rented through operating leases for R&D activities. 3. Depreciation expenses: depreciation expenses of instruments and equipment used for research and development activities.
4. Amortization of intangible assets: Amortization expenses of software, patents, non-patented technologies (including licenses, proprietary technologies, designs and calculation methods, etc.) used for research and development activities. 5. New product expenses include new product design fees, new process protocol 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 fees, retrieval, analysis, review, demonstration, identification, review, and evaluation of R&D results , inspection fees, intellectual property fees, registration fees, agency fees, travel expenses, conference fees, etc.