Patent expenditure deduction

According to the interpretation of "Regulations on the Implementation of Enterprise Income Tax Law of People's Republic of China (PRC)", it can be clearly seen that the specific deduction method of research and development expenses is: the research and development expenses without intangible assets are included in the current profits and losses, and on the basis of deducting 100% according to regulations, the research and development expenses with intangible assets are deducted by 50%, and the research and development expenses with intangible assets are deducted by 150%. In other words, according to whether R&D expenses are capitalized, there are two ways to increase deductions. The total pre-tax deduction remains unchanged, that is, 65438+ 050% of the actual R&D expenses. The tax law allows the deduction of R&D expenses, the main purpose of which is to encourage enterprises to carry out R&D and reduce the income tax burden of independent development of intangible assets. For R&D expenditure without intangible assets, as it is included in the current profits and losses, the tax law allows the current period to be added and deducted. For the R&D expenditure with intangible assets, the enterprise amortizes it to the current profit and loss by reasonable amortization method, so the tax law allows the deduction to be added in installments during the amortization period. It can be seen that there is always a difference between the R&D expenditure deducted by enterprises when calculating profits and the R&D expenditure allowed by tax law when calculating taxable income. This difference will not disappear automatically with the passage of time, nor will it automatically turn back with the passage of time. Therefore, the author believes that this difference should be permanent and should not be considered temporary.