Additional deduction for enterprise R&D expenses.
In accordance with the provisions of the Tax Law, the additional deduction for enterprise research and development expenses is mainly divided into two cases: one is that since January 1, 2021, manufacturing enterprises to carry out research and development activities in the actual incurred research and development costs, not formed intangible assets included in the current period of profit and loss, according to the provisions of the actual deduction based on the basis of the actual amount of deduction, then according to the actual amount of deduction of 100 percent of the pre-tax addition; formation of intangible assets, in accordance with the cost of intangible assets, 200 percent of the cost of intangible assets in the pre-tax deduction. Intangible assets, in accordance with the intangible asset cost of 200% amortization before tax. That increased the research and development costs of manufacturing enterprises to add deduction efforts.
It should be emphasized that the enjoyment of R & D expenditures plus 100% deduction of preferential policies for enterprises, both to meet the requirements of the "National Economic Industry Classification", as well as to enjoy the preferential year of the manufacturing industry revenue accounted for more than 50%, or can not enjoy 100% deduction of preferential.
The second is the general business research and development costs, not formed intangible assets included in current profit and loss, in accordance with the provisions of the actual deduction on the basis of the research and development costs, and then in accordance with the 75% deduction; the formation of intangible assets, in accordance with the cost of intangible assets amortized at 175%.
Enterprises are allowed to deduct research and development expenses mainly include:
1. Personnel labor costs refer to the wages and salaries of personnel directly engaged in research and development activities, basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, and housing provident fund, as well as the labor costs of external research and development personnel.
2. Direct input costs refer to materials, fuel and power costs directly consumed in R&D activities, as well as various instruments, molds, test fees, inspection fees and equipment rental fees for intermediate tests and R&D activities.
3. Depreciation expense is the depreciation of instruments and equipment used for R&D activities.
4. Amortization expense of intangible assets is the amortization expense of software, patents and non-patented technologies used in R&D activities.
5. New product design costs, new process protocol development costs, clinical trials of new drug development costs, field test costs of exploration and development technology are the various types of costs incurred in the process of new product design, new process protocol development, clinical trials of new drug development, field tests of exploration and development technology in relation to the implementation of the activity.
6, other related costs are other costs directly related to R & D activities, such as technical library fees, data translation costs, expert consulting fees. Additional deduction of other related costs need to be controlled by the limit, which is calculated as follows, the limit of other related costs of all R & D projects = the sum of five costs of all R & D projects, such as personnel labor × 10% / (1-10%)
In addition, the enterprise entrusted foreign R & D costs according to the actual amount of the cost of 80% of the commissioned party entrusted to the foreign R & D costs, not exceeding the domestic The portion of 2/3 of the eligible R&D expenses can be deducted before the enterprise income tax in accordance with the regulations.
Enterprises are allowed to deduct the wages paid for the placement of disabled persons.
The additional deduction for wages paid by enterprises for the placement of disabled persons means that if an enterprise places disabled persons, it can deduct 100% of the wages paid to disabled workers on top of the actual deduction for wages paid to disabled workers.
In short, the additional deduction for enterprise income tax is an additional deduction on top of the pre-tax deduction for the enterprise's actual expenditures in accordance with the prescribed ratio. The additional deduction is divided into the research and development expenses additional deduction, that is, the manufacturing industry in the actual expenditure on the basis of 100% additional deduction and the general enterprise 75% additional deduction, and the enterprise placement of disabled personnel to pay wages on the basis of 100% additional deduction.
Legal basis:
Enterprise Income Tax Law, Article 30 of the following expenditures can be deducted in the calculation of taxable income:
(a) the development of new technologies, new products, new processes incurred in the research and development costs;
(b) the placement of disabled persons and the state to encourage the placement of the wages paid to the other employed persons.