New policy guidelines for pre-tax super deduction of R&D expenses
1. Specific policies for super deduction of R&D expenses
Applicable entities
Except In addition to the tobacco manufacturing industry, accommodation and catering industry, wholesale and retail industry, real estate industry, leasing and business service industry, entertainment industry, etc., enterprises in other industries can enjoy it.
Discount content
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 deducted in accordance with regulations and will be deducted from 2023 onwards. Starting from January 1, 100% of the actual amount will be deducted before tax; if intangible assets are formed, starting from January 1, 2023, 200% of the cost of the intangible assets will be amortized before tax.
The above policies are implemented as institutional arrangements for the long term.
Policy Basis
1. "Notice of the Ministry of Finance, State Administration of Taxation and the Ministry of Science and Technology on Improving the Pre-tax Super Deduction Policy for Research and Development Expenses" (Caishui [2015] No. 119)
p>2. "Announcement of the Ministry of Finance and the State Administration of Taxation on Further Improving the Pre-tax Super Deduction Policy for R&D Expenses" (No. 7, 2023)
2. Application of the Super Deduction Policy for R&D Expenses Scope of activities
Applicable entities
In addition to the tobacco manufacturing industry, accommodation and catering industry, wholesale and retail industry, real estate industry, leasing and business service industry, entertainment industry, etc., enterprises in other industries All can be enjoyed.
Applicable activities
Enterprises continue to carry out clear and clear activities to obtain new scientific and technological knowledge, creatively apply new scientific and technological knowledge, or substantially improve technology, products (services), and processes. Targeted systematic activities.
The pre-tax super deduction policy is not applicable to the following activities:
1. Routine upgrades of enterprise products (services).
2. The direct application of a certain scientific research result, such as the direct use of public new processes, materials, devices, products, services or knowledge, etc.
3. Technical support activities provided by enterprises to customers after commercialization.
4. Repetition or simple changes to existing products, services, technologies, materials or processes.
5. Market research, efficiency survey or management research.
6. As part of the industrial (service) process or routine quality control, testing analysis, repair and maintenance.
7. Research in social sciences, arts or humanities.
Policy Basis
"Notice of the Ministry of Finance, State Administration of Taxation and the Ministry of Science and Technology on Improving the Pre-tax Super Deduction Policy for Research and Development Expenses" (Caishui [2015] No. 119)
3. Scope of research and development expenses that can be super deducted
Applicable entities
Except tobacco manufacturing, accommodation and catering industry, wholesale and retail industry, real estate industry, leasing and business In addition to the service industry and entertainment industry, companies in other industries can enjoy it.
Discount content
1. Personnel labor costs.
Salaries, basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and housing provident funds for personnel directly engaged in R&D activities, as well as labor costs for external R&D personnel.
2. Direct investment expenses.
(1) Material, fuel and power costs directly consumed by R&D activities.
(2) Development and manufacturing fees for molds and process equipment used for intermediate testing and product trial production, purchase fees for samples, prototypes and general testing methods that do not constitute fixed assets, and inspection fees for trial production products.
(3) Operation, maintenance, adjustment, inspection, repair and other expenses for instruments and equipment used for R&D activities, as well as the rental fees for instruments and equipment rented for R&D activities through operating leases.
3. Depreciation expenses.
Depreciation of instruments and equipment used for research and development activities.
4. Amortization of intangible assets.
Amortization expenses for software, patents, and non-patented technologies (including licenses, proprietary technologies, design and calculation methods, etc.) used for research and development activities.
5. New product design fees, new process procedure formulation fees, clinical trial fees for new drug development, and field test fees for exploration and development technology.
6. Other related expenses.
Other expenses directly related to R&D activities, such as technical book materials fees, data translation fees, expert consulting fees, high-tech R&D insurance premiums, retrieval, analysis, evaluation, demonstration, appraisal, and review of R&D results , evaluation and acceptance fees, intellectual property application fees, registration fees, agency fees, travel expenses, conference fees, employee welfare fees, supplementary pension insurance premiums, and supplementary medical insurance premiums. The total amount of such expenses shall not exceed 10% of the total R&D expenses that can be super-deducted.
Policy Basis
1. "Notice of the Ministry of Finance, State Administration of Taxation and the Ministry of Science and Technology on Improving the Pre-tax Super Deduction Policy for Research and Development Expenses" (Caishui [2015] No. 119)
p>2. "Announcement of the State Administration of Taxation on Issues Concerning the Scope of Pre-tax Super Deduction for R&D Expenses" (No. 40, 2017)
IV. Entrustment, cooperation, and centralized R&D expenses Super deduction policy
Applicable entities
Except for tobacco manufacturing, accommodation and catering industry, wholesale and retail industry, real estate industry, leasing and business service industry, entertainment industry, etc., other All industry companies can enjoy it.
Judgment criteria
1. Expenses incurred by an enterprise entrusting external institutions or individuals to conduct R&D activities shall be included in the R&D expenses of the entrusting party according to 80% of the actual amount of expenses incurred and calculated as aggregation deduction, the trustee shall not make additional deductions. The expenses incurred by entrusting overseas research and development activities shall be included in the entrusting party's entrusted overseas R&D expenses according to 80% of the actual amount of expenses incurred. 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.
2. For projects jointly developed by enterprises and partners, the parties to the cooperation shall separately calculate the super deduction based on the actual research and development expenses borne by themselves.
3. Based on the actual situation of production, operation and technological development of enterprise groups, for projects with high technical requirements, large amounts of investment, and requiring centralized research and development, the actual research and development expenses incurred by the enterprise group can be consistent with the rights and obligations. , the principle of matching expenses and revenue sharing, reasonably determining the allocation method of R&D expenses, and apportioning them among the beneficiary member companies, and the relevant member companies will calculate the super deduction respectively.
Policy Basis
1. "Notice of the Ministry of Finance, State Administration of Taxation and the Ministry of Science and Technology on Improving the Pre-tax Super Deduction Policy for Research and Development Expenses" (Caishui [2015] No. 119)
p>2. "Notice of the Ministry of Finance, State Administration of Taxation and the Ministry of Science and Technology on Policy Issues Concerning the Pre-tax Super Deduction of Overseas Research and Development Expenses Entrusted by Enterprises" (Finance and Taxation [2018] No. 64)
5. Research and Development Accounting and management of additional expense deduction policy
Applicable entities
Except tobacco manufacturing, accommodation and catering industry, wholesale and retail industry, real estate industry, leasing and business service industry, and entertainment industry In addition to other industries, enterprises in other industries can enjoy it.
Discount content
1. Enterprises should account for R&D expenditures in accordance with the requirements of the national financial accounting system; at the same time, R&D expenses that enjoy super deductions should set up auxiliary accounts according to R&D projects. , accurately collect and calculate the actual amount of various research and development expenses that can be super deducted in the current year. If an enterprise carries out multiple R&D activities within a tax year, the R&D expenses that can be super-deducted should be classified according to different R&D projects.
2. Enterprises should separately account for R&D expenses and production and operating expenses, and accurately and reasonably aggregate various expenses. If the division is unclear, no additional deductions shall be made.
Policy Basis
"Notice of the Ministry of Finance, State Administration of Taxation, and Ministry of Science and Technology on Improving the Pre-tax Super Deduction Policy for Research and Development Expenses" (Caishui [2015] No. 119)