R&D expenses plus deduction is a preferential tax policy to encourage enterprises to increase R&D investment and promote scientific and technological innovation. The following are the basic conditions for enterprises to enjoy the R&D fee plus deduction policy:
R&D activities must conform to the technical fields specified by the state: R&D activities must belong to the high-tech fields supported by the state and the technical fields specified in the regulatory key points for the implementation of the R&D expense plus deduction policy in the current year.
R&D expenses must really occur: enterprises must separate R&D expenses from other expenses according to the provisions of the financial system, and set up detailed accounts to collect R&D expenses according to R&D projects.
R&D expenses must be allocated reasonably: for enterprises undertaking multiple R&D projects at the same time, R&D expenses must be allocated reasonably among the projects according to the principles of fairness, rationality and operability.
There must be intellectual property achievements: R&D activities must have intellectual property achievements, such as patents and software copyrights.
Other conditions: the enterprise must have a sound financial accounting and management system, be able to accurately calculate R&D expenses, and submit relevant materials in accordance with regulations. In addition, R&D projects involving multiple regions must meet other conditions stipulated by State Taxation Administration of The People's Republic of China and the Ministry of Finance.
Enterprises that meet the above conditions can enjoy the R&D expenses plus deduction policy. Specifically, the policy requires enterprises to list R&D expenses separately in accounting and add or subtract them in the annual final accounts according to relevant regulations. For qualified enterprises, 50% of R&D expenses can be deducted, and for high-tech fields supported by the state, it can be increased to 75%. This policy can effectively reduce the tax burden of enterprises, encourage enterprises to increase investment in research and development, and promote technological innovation and progress.