Activities not subject to the pre-tax deduction policy
1. Routine upgrading of enterprise products (services).
2. Direct application of a scientific research result, such as the direct adoption of a publicly available new process, material, device, product, service or knowledge.
3. technical support activities provided by a firm to its customers after commercialization.
4. A duplication or simple change to an existing product, service, technology, material or process.
5. market research studies, efficiency surveys, or management studies.
6. Quality control, testing and analysis, repair and maintenance as part of an industrial (service) process or routine.
7. Research in the social sciences, arts or humanities.
Technology companies state to give subsidies to the conditions: (1) high-tech field products: electronics and information, biology and medicine, new materials, optical mechatronics, new energy and energy-efficient, environmental protection and resource utilization, aerospace and transportation, agriculture, other high-tech products; (2) with independent intellectual property rights, innovative, high technology content, good market prospects for new products, in particular Original new products; (3) new products that have a significant role in promoting and driving the development of basic industries and pillar industries of the national economy; (4) new products adopting international standards or advanced standards at home and abroad; (5) new products transformed by the achievements of national and provincial science and technology programs, especially the "863" program, the Science and Technology Tackling Program or other basic research programs, and the industrialization of the scientific and technological achievements of other basic research programs. Other basic research programs of scientific and technological achievements industrialization projects. Enterprises in order to obtain new knowledge of science and technology, creative use of new knowledge of science and technology, or substantial improvement of technology, products (services), processes and ongoing systematic activities with clear objectives.
Enterprises to carry out research and development activities in the actual incurred research and development costs, not formed intangible assets included in current profit and loss, in accordance with the provisions of the actual deduction basis, according to the actual amount of 50% of the current year, deducted from the current year's taxable income; the formation of intangible assets, intangible assets according to the cost of 150% of the amortization of the cost of the pre-tax. The specific scope of R&D expenses includes:
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, know-how, designs and calculation methods, etc.) used for R&D activities.
5. Fees for new product design, development of new process protocols, clinical trials for new drug development, and field trials for exploration and development technologies.
6. Other related expenses.
Other costs directly related to R & D activities, such as technical library fees, data translation fees, expert consultation fees, high-tech R & D insurance premiums, R & D results of the search, analysis, evaluation, argumentation, identification, assessment, evaluation, acceptance costs, intellectual property rights, application fees, registration fees, agency fees, travel expenses, conference fees. The total amount of such expenses shall not exceed 10% of the total amount of R&D expenses that can be added and deducted.
7. Other expenses specified by the Ministry of Finance and the State Administration of Taxation.
I hope the above can help you, if there are still questions please consult a professional lawyer.
Legal basis:
Article 95 of the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China
Accountable deduction of research and development expenses referred to in Article 30(1) of the Enterprise Income Tax Law means that if the research and development expenses incurred by an enterprise for the purpose of developing a new technology, a new product, or a new process does not result in an intangible asset that is included in the current period's profit and loss, it can be deducted on the basis of actual deductions in accordance with the regulations. On the basis of the actual deduction, according to the research and development costs of 50% additional deduction; the formation of intangible assets, according to the cost of intangible assets amortized at 150%.