Recently, the Ministry of Finance, State Taxation Administration of The People's Republic of China and the Ministry of Science and Technology issued the Notice on Improving the Pre-tax Deduction Policy for R&D Expenses. What are the four new changes that should be paid attention to in 2022? Bian Xiao has prepared relevant knowledge for you, hoping to help you. Four new changes should be paid attention to when R&D expenses are added and deducted in 2022. The applicant for R&D project evaluation is the competent tax authority, and if the tax authority has any objection to the R&D project declared by the enterprise, the applicant for R&D project appraisal has changed from asking the enterprise to provide the appraisal opinion issued by the government science and technology department at or above the prefecture level, and the science and technology department should reply to the opinion in time, thus avoiding the possibility of taxpayers cheating on the appraisal opinion of R&D projects. The allowed additional deduction of R&D expenses is not limited to the expenses specially used for R&D activities, but also includes the operation, maintenance, adjustment, inspection and repair expenses of instruments and equipment, as well as the development and manufacturing expenses of molds and process equipment for intermediate test and product trial production. As well as the rental fees for instruments and equipment used in R&D activities, and the amortization fees for software, patented and non-patented technologies (including licensing, proprietary technology, design and calculation methods, etc.). ) for R&D activities. In the process of investigating and verifying the addition and deduction of R&D expenses, it is difficult for tax authorities to distinguish which direct input expenses and intangible assets amortization expenses are used for R&D activities and which are used for production and business activities. Often because taxpayers can't distinguish these expensed expenses, it is required that the above expenses can't be fully deducted. However, the document Caishui [2015]19 has solved this problem by canceling the stipulation that expensed expenditure is dedicated to R&D activities. The labor cost of external personnel can also be deducted. Every year, in order to investigate and verify whether the personnel directly engaged in R&D activities belong to enterprise employees, tax authorities often need to obtain relevant personnel information from different departments of taxpayers, which wastes a lot of energy. There is no longer a "on-the-job" restriction on the scope of labor fee deduction, which is conducive to improving the work efficiency of tax authorities and helping taxpayers to retain high-tech talents. According to the document Caishui [2015]19, the wages and salaries, basic old-age insurance, basic medical insurance, unemployment insurance, industrial injury insurance, maternity insurance, housing accumulation fund and labor expenses of external R&D personnel are allowed to be deducted. The range of R&D field is not limited by two fields. The document Caishui [2015]19 lists the industries that are not applicable to the pre-tax deduction policy, namely: tobacco manufacturing, accommodation and catering, wholesale and retail, real estate, leasing and business services, entertainment, Ministry of Finance and other industries specified by State Taxation Administration of The People's Republic of China, People's Republic of China (PRC). The expansion of the field of R&D activities makes it more applicable, and avoids unnecessary disputes between tax authorities and taxpayers caused by the problem of R&D "field" caused by whether R&D activities belong to the high-tech field supported by the state and the key field of high-tech industrialization given priority to development at present. The above is the relevant legal knowledge prepared by Bian Xiao for you. If you still have questions, it is recommended to consult an online lawyer.
Legal objectivity:
Regulations of People's Republic of China (PRC) Municipality on the Implementation of Enterprise Income Tax Law
Article 95
The term "research and development expenses plus deduction" mentioned in Item (1) of Article 30 of the Enterprise Income Tax Law refers to the research and development expenses of intangible assets that are not included in the current profits and losses for the development of new technologies, new products and new processes, plus deduction of 50%.
Intangible assets shall be amortized at 150% of the cost of intangible assets.
Regulations of People's Republic of China (PRC) Municipality on the Implementation of Enterprise Income Tax Law
Article 95
The term "research and development expenses plus deduction" mentioned in Item (1) of Article 30 of the Enterprise Income Tax Law refers to the research and development expenses of intangible assets that are not included in the current profits and losses for the development of new technologies, new products and new processes, plus deduction of 50%.
Intangible assets shall be amortized at 150% of the cost of intangible assets.