The tax policy for super deduction of R&D expenses is summarized as follows. Pay attention to me, learn more about the law, and do not panic when encountering difficulties:
1. "Enterprise Income Tax Law of the People's Republic of China" Paragraph 1 of Article 30 stipulates that research and development expenses incurred in developing new technologies, new products, and new processes shall be deducted in addition when calculating taxable income, and shall be implemented from January 1, 2008.
2. The "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" was formulated by the State Council in accordance with the Enterprise Income Tax Law. Article 95 of the regulations stipulates that enterprises must develop new technologies, new products, and new processes. If the research and development expenses incurred do not form intangible assets and are included in the current profit and loss, on the basis of actual deductions in accordance with regulations, an additional deduction of 50% of the research and development expenses will be made; if they form intangible assets, they will be amortized at 150% of the cost of the intangible assets. pin.
3. Finance and Taxation [2015] No. 119 has broadened the scope of R&D activities and adopted a negative list to further expand the scope of super deduction of R&D expenses. The document is valid from January 1, 2016 to the present (some provisions were abolished by Finance and Taxation [2018] No. 99).
4. The General Administration Announcement No. 97 of 2015 clarified the policy implementation scope of Caishui [2015] No. 119, simplified the collection, accounting and filing management of R&D expenses in tax treatment, and further reduced threshold for discounts. The document is valid from January 1, 2016 to the present (some provisions were abolished by the State Administration of Taxation Announcement No. 40 of 2017, Finance and Taxation [2018] No. 64, and the State Administration of Taxation Announcement No. 41 of 2019).
5. The General Administration Announcement No. 40 of 2017 has improved and clarified the control standards for some R&D expenses, and appropriately reflected the systematization and completeness in the system. The document is valid from January 1, 2017 to the present.
6. Caishui [2017] No. 34, General Administration Announcement 2017 No. 18, Guoke Fazheng [2017] No. 115, Guoke Huozi [2017] No. 144, Caishui [2018] No. 76 , General Administration Announcement No. 45 of 2018, Guokehuozi [2022] No. 67, Ministry of Finance, State Administration of Taxation and Ministry of Science and Technology Announcement No. 16 of 2022 are policies and management systems for the super deduction of R&D expenses for small and medium-sized science and technology enterprises.
7. Caishui [2018] No. 64 stipulates that starting from January 1, 2018, the restriction on the super deduction of overseas R&D expenses entrusted by enterprises will be cancelled. The expenses incurred by enterprises entrusting overseas R&D activities will be 80% of the actual amount of expenses shall be included in the entrusted overseas R&D expenses of the entrusting party. The portion of entrusted overseas R&D expenses that does not exceed two-thirds of the domestic qualifying R&D expenses can be deducted as an additional deduction before corporate income tax in accordance with regulations.
8. The State Administration of Taxation Announcement No. 57 of 2018 is applicable to the final settlement and payment of corporate income tax in 2018 and subsequent years. Adjust the "Basic Information" related items of the original form to the "Basic Information Form for Annual Corporate Income Tax Return" (A000000); According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Policy Issues Concerning Pre-tax Super Deduction of Overseas Research and Development Expenses Entrusted by Enterprises" 》 (Finance and Taxation [2018] No. 64) cancels the restriction on the super deduction of overseas R&D expenses entrusted by enterprises, revised the relevant content of "entrusted R&D" projects, and refined the original line content into "entrusting domestic institutions or individuals to conduct R&D activities" "Expenses incurred", "Expenses incurred by entrusting overseas institutions to conduct R&D activities", "Including: expenses incurred by entrusting overseas institutions to conduct R&D activities that allow for super deduction", "Expenses incurred by entrusting overseas individuals to conduct R&D activities", and adjust the table Compute relationships.
9. Finance and Taxation [2018] No. 99 has increased the scope of the super deduction of R&D expenses, stipulating that if the R&D expenses actually incurred by the enterprise in carrying out R&D activities and have not formed intangible assets and are included in the current profits and losses, they will be included in the current profit and loss. On the basis of actual deductions, during the period from January 1, 2018 to December 31, 2020, 75% of the actual amount will be deducted before tax; if intangible assets are formed, during the above period, they will be deducted as intangible assets. 175% of the cost is amortized before tax.
10. The General Administration Announcement No. 23 of 2018 stipulates that enterprises should adopt the method of "self-judgment, declaration for enjoyment, and retention of relevant information for future reference" for enterprises to enjoy preferential treatment.
Enterprises should judge on their own whether they meet the conditions for preferential matters based on their operating conditions and relevant tax regulations. Those who meet the conditions can calculate their own tax reductions and exemptions according to the time listed in the "Catalog" and enjoy tax preferential treatment by filling in the corporate income tax return. At the same time, relevant information will be collected and retained for future reference in accordance with regulations.
11. State Administration of Taxation Announcement No. 41 of 2019 stipulates that when enterprises apply for the super deduction policy for R&D expenses, they must follow the "State Administration of Taxation's revised "Measures for handling corporate income tax preferential policies" According to the provisions of the Announcement of the State Administration of Taxation (State Administration of Taxation Announcement No. 23 of 2018), it is no longer necessary to fill in the "Collection Form of Research and Development Expenses for Super Deductions for R&D Projects" and submit the "Auxiliary Account Summary Form of "R&D Expenditures"". The "R&D Expenditure" Auxiliary Account Summary Sheet shall be retained by the enterprise for future reference. This announcement applies to corporate income tax final settlement declarations for 2019 and subsequent years.
12. On March 15, 2021, the State Administration of Taxation issued the "Monthly (Quarterly) Prepayment Tax Return for Enterprise Income Tax of the People's Republic of China (Category A)" (State Administration of Taxation Announcement No. 3, 2021), revise the prepayment tax return form for corporate income tax collection, simplify the form style, line 7 of the main table: Deduction: tax-free income, subtraction income, super deduction (7.1+7.2+…), according to " "Catalogue of Enterprise Income Tax Declaration Items", in lines 7.1 and 7.2... fill in the specific names and accumulated amounts for the year of tax-free income, subtracted income, super deductions and other preferential items stipulated in tax regulations.
13. On March 15, 2021, the "Announcement of the Ministry of Finance and the State Administration of Taxation on Extending the Implementation Period of Some Preferential Tax Policies" (Announcement No. 6 of the Ministry of Finance and the State Administration of Taxation of 2021) will be issued by Caishui [2018] No. 99 The implementation period of the preferential policy on increasing the pre-tax super deduction ratio for research and development expenses has been extended to December 31, 2023. That is to say: if the R&D expenses actually incurred by the enterprise in carrying out R&D activities have not formed intangible assets and are included in the current profits and losses, they will be deducted in accordance with the regulations on the basis of actual deductions from January 1, 2018 to December 31, 2023. 75% of the actual amount will be deducted before tax; if intangible assets are formed, 175% of the cost of the intangible assets will be amortized before tax during the above period.
14. On April 8, 2021, the announcement on further improving the pre-tax super deduction policy for R&D expenses (Announcement No. 13 of the Ministry of Finance and the State Administration of Taxation of 2021) clarified that the actual expenses incurred in the R&D activities of manufacturing enterprises If R&D expenses do not form intangible assets and are included in the current profits and losses, on the basis of actual deductions in accordance with regulations, starting from January 1, 2021, an additional deduction of 100% of the actual amount incurred will be made before tax; if intangible assets are formed , starting from January 1, 2021, it will be amortized before tax at 200% of the cost of intangible assets. When enterprises prepay and declare corporate income tax for the third quarter (quarterly prepayment) or September (monthly prepayment) of the year, they can choose to enjoy the preferential policy of super deduction for R&D expenses in the first half of the year, and adopt the "self-judgement, declaration and enjoyment" , Retain relevant information for future reference” handling method.
15. On September 13, 2021, the "Announcement of the State Administration of Taxation on Issues Related to Further Implementing the Super Deduction Policy for R&D Expenses" (State Administration of Taxation Announcement No. 28 of 2021), the announcement clearly stated: First, in When applying for prepayment in October this year, companies are allowed to choose to enjoy the preferential discount on the super deduction of R&D expenses for the first three quarters in advance. (Note: Expanding from the first half of the year to the first three quarters, that is, enjoying one more quarter); second, adding an optimized and simplified auxiliary account format for R&D expenses to reduce the difficulty of filling in. Combine the 4 types of auxiliary account styles into one category, *** "1 auxiliary account + 1 summary table". Third, the calculation method of the "other related expenses" limit has been adjusted and optimized, and the "other related expenses" limit for all R&D projects has been calculated uniformly, which allows the "other related expense" limits of multiple projects to be adjusted and used, and overall the amount that can be added has been improved. The amount deducted.
The fourth is to stipulate that the policy for enterprises to enjoy the super deduction of R&D expenses adopts the handling method of "actually incurred, self-judgement, declaration and enjoyment, and relevant information retained for future reference". The enterprise shall calculate the amount of the super deduction based on the actual R&D expenses incurred and fill in the " The People's Republic of China Enterprise Income Tax Monthly (Quarterly) Prepayment Tax Return (Type A)" enjoys tax preferential treatment, and the "Additional R&D Expenses" should be filled in based on the R&D expenses that enjoy the super deduction preferential treatment (the first three quarters). Details of Deduction Discounts" (A107012). The "Detailed Schedule of Super Deduction of R&D Expenses" (A107012) shall be retained for future reference together with other information stipulated in the policy.
16. On March 23, 2022, the "Announcement on Further Increasing the Pre-tax Super Deduction Ratio of R&D Expenses for Small and Medium-sized Scientific and Technological Enterprises" (Announcement No. 16, 2022, of the Science and Technology Department of the Ministry of Finance, State Administration of Taxation) stipulates that science and technology If the R&D expenses actually incurred by small and medium-sized enterprises in carrying out R&D activities have not formed intangible assets and are included in the current profits and losses, on the basis of actual deductions in accordance with regulations, starting from January 1, 2022, they will be deducted at 100% of the actual amount incurred. An additional deduction will be made before tax; if an intangible asset is formed, it will be amortized before tax at 200% of the cost of the intangible asset from January 1, 2022. The conditions and management measures for technology-based small and medium-sized enterprises shall be implemented in accordance with Guoke Fa Zheng [2017] No. 115. Other policy criteria and management requirements for technology-based small and medium-sized enterprises to enjoy the pre-tax super deduction policy for R&D expenses shall be implemented in accordance with the relevant provisions of Finance and Taxation [2015] No. 119, Finance and Taxation [2018] No. 64 and other documents. ?