It mainly depends on what can be included in R&D expenses:
According to the Notice of the Ministry of Finance, State Taxation Administration of The People's Republic of China and the Ministry of Science and Technology on Improving the Pre-tax Addition and Deduction Policy of R&D Expenses (Caishui [215] No.119), I. R&D activities and the scope of R&D expenses collection. The R&D activities mentioned in this Notice refer to the systematic activities with clear objectives that enterprises continue to carry out in order to acquire new scientific and technological knowledge, creatively apply new scientific and technological knowledge, or substantially improve technologies, products (services) and processes.
(1) Deducted R&D expenses are allowed to be added. If the R&D expenses actually incurred in the R&D activities of enterprises are not included in the current profits and losses, they shall be deducted from the taxable income of this year according to 5% of the actual amount incurred in this year on the basis of actual deduction according to regulations; Where intangible assets are formed, they shall be amortized before tax according to 15% of the cost of intangible assets. The specific scope of R&D expenses includes:
1. Personnel labor expenses. Salaries, basic old-age insurance, basic medical insurance, unemployment insurance, work injury insurance, maternity insurance and housing accumulation fund of personnel directly engaged in R&D activities, as well as labor costs of external R&D personnel.
2. Direct input cost.
(1) expenses of materials, fuel and power directly consumed by R&D activities.
(2) Development and manufacturing expenses of molds, process equipment used for intermediate test and trial production of products do not constitute the purchase expenses of samples, prototypes and general test means of fixed assets, and the inspection expenses of trial production products.
(3) expenses for operation, maintenance, adjustment, inspection and repair of instruments and equipment used for R&D activities, and rental expenses for instruments and equipment used for R&D activities rented through operating lease.
3. Depreciation expense. Depreciation expenses for instruments and equipment used in R&D activities.
4. Amortization of intangible assets. Amortization expenses of software, patents and non-patented technologies (including licenses, proprietary technologies, design and calculation methods, etc.) used for R&D activities.
5. new product design fee, new process specification formulation fee, clinical trial fee for new drug development, and field trial fee for exploration and development technology.
6. Other related expenses. Other expenses directly related to R&D activities, such as technical books and materials fees, materials translation fees, expert consultation fees, high-tech R&D insurance fees, search, analysis, evaluation, demonstration, appraisal, evaluation and acceptance fees of R&D results, application fees, registration fees, agency fees, travel expenses, conference fees, etc. of intellectual property rights. The total amount of this expense shall not exceed 1% of the total amount of R&D expenses that can be added and deducted.
7. Other expenses stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.