Today, we will take you to understand: the scope of R&D expenses that can be added and deducted
The scope of R&D expenses that can be added and deducted
Applicable subjects
Except for tobacco manufacturing, accommodation and catering, wholesale and retail trade, real estate, leasing and business services, and entertainment, enterprises of other industries are entitled to enjoy.
Contents of the discount
1. Personnel labor costs. Wages and salaries, basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, industrial injury insurance premiums, maternity insurance premiums and housing provident fund of personnel directly engaged in R&D activities, as well as labor costs of external R&D personnel.
2. Direct input costs.
(1) The cost of materials, fuel and power directly consumed by R&D activities.
(2) for intermediate tests and product trial production of molds, process equipment development and manufacturing costs, does not constitute a fixed asset samples, prototypes and general test means acquisition costs, test products inspection costs.
(3) Costs of operation and maintenance, adjustment, inspection and repair of instruments and equipment used for research and development activities, as well as leasing fees for instruments and equipment used for research and development activities leased through operating leases.
3. Depreciation expenses.
Depreciation expense of instruments and equipment used for R&D activities.
4. Amortization of intangible assets.
Amortization expense of software, patents, and non-patented technologies (including licenses, proprietary technologies, designs and calculation methods, etc.) used for R&D activities.
5. Fees for the design of new products, the development of new process protocols, clinical trials for the development of new drugs, and field trials for exploration and development technologies.
6. Other related expenses.
Other costs directly related to R & D activities, such as technical library and data fees, data translation fees, expert consulting fees, high-tech R & D insurance premiums, R & D results of the search, analysis, evaluation, argumentation, appraisal, review, assessment, acceptance costs, intellectual property rights, application fees, registration fees, agency fees, travel expenses, meeting expenses, employee welfare costs, supplemental pension insurance premiums, supplemental medical insurance premiums. The total amount of such costs shall not exceed the amount of the accrued expenses. The total amount of such expenses shall not exceed 10% of the total amount of deductible R&D expenses.
Policy Basis
1. Notice of the Ministry of Finance, State Administration of Taxation and Ministry of Science and Technology on Improving the Policy of Pre-Tax Deduction of Research and Development Expenses (Cai Shui [2015] No. 119)
2. Announcement of the State Administration of Taxation on the Issues Relating to the Scope of Pre-Tax Deduction of Research and Development Expenses (No. 40 of 2017)