Methods for deducting R&D expenses for high-tech enterprises:
(1) If the enterprise is a small and medium-sized technology-based enterprise, then R&D expenses will be deducted on a pre-tax basis based on 75% of the actual amount
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Caishui [2017] No. 34 stipulates that if the R&D expenses actually incurred by small and medium-sized technology enterprises in carrying out R&D activities and have not formed intangible assets and are included in the current profits and losses, they will be deducted in accordance with the regulations in 2017. From January 1, 2019 to December 31, 2019, 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.
(2) If the enterprise is a non-technological small and medium-sized enterprise, then the research and development expenses will be deducted before tax based on 50% of the actual amount:
Caishui [2015] No. 119 stipulates For enterprises that are subject to the super deduction of research and development expenses, 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, on the basis of actual deductions in accordance with regulations, 50% of the actual amount incurred in the current year will be , deducted from the taxable income for the year; if it forms an intangible asset, it will be amortized before tax at 150% of the cost of the intangible asset.
1. Introduction
R&D expenses refer to the expenses paid for the research and development of a certain project. Our country's relevant systems regulate R&D expenses in two aspects: "Accounting Standards for Business Enterprises No. 6 - Intangible Assets" and the "Enterprise Income Tax Law of the People's Republic of China".
2. Treatment
The treatment of R&D expenses under my country’s accounting standards is divided into two parts: first, expenses incurred in the research stage and expenses that cannot be distinguished between R&D expenditures in the research stage and R&D expenditures in the development stage. All expenditures are expensed; secondly, expenditures incurred during the development phase of internal research and development projects within the enterprise, expenditures that can prove to meet the conditions of intangible assets are capitalized and amortized in installments.
As mentioned above, the "Enterprise Income Tax Law of the People's Republic of China" handles the requirements for research and development expenses in two situations: "Research conducted by enterprises to develop new technologies, new products, and new processes" If the development expenses 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 intangible assets are formed, they will be amortized at 150% of the cost of the intangible assets."