The deduction of R&D expenses is a preferential policy for enterprise income tax. Enterprises should pay attention to the following three aspects when declaring R&D expenses plus deduction to improve the declaration pass rate. No. 116 of 2008), on the basis of the scope of additional deduction for research and development expenses stipulated in Article 4 of SAT, five new types of expenses have been added. The basic pension insurance premium, basic medical insurance premium, unemployment insurance premium, industrial injury insurance premium, maternity insurance premium and housing provident fund paid by the enterprise for the staff directly engaged in R&D activities in accordance with the scope and standard prescribed by the relevant competent department of the State Council or the provincial people's government. Costs of operation and maintenance, adjustment, inspection and repair of instruments and equipments used exclusively for R&D activities; costs of purchasing samples, prototypes and general testing means which do not constitute fixed assets; costs of clinical trials for the development of new drugs; and costs of appraisal of R&D results. Enterprises should include the above expenses in the scope of deduction when they collect R&D expenses, so as to increase the amount of tax reduction and fully enjoy the tax incentives. Enterprises should also pay attention to the cost items that cannot be included in the scope of R&D cost deduction, including the following categories. Labor cost of external R&D personnel. Wages, salaries, bonuses, five insurance and one pension of external R&D personnel are not allowed to be included in the scope of deduction, but the above expenses of external personnel who have worked for 183 days in a year are allowed to be included in the account of "R&D expenses". Supplementary pension insurance and supplementary medical insurance paid by the enterprise for the personnel directly engaged in R&D activities. According to the provisions of Cai Shui [2013] No. 70, the five insurance premiums allowed to be included in the scope of additional deduction do not include supplementary pension insurance and supplementary medical insurance expenses. Rental and depreciation expenses of buildings used for R&D activities. Leasing fees and depreciation expenses for fixed assets used for R&D activities are not allowed to be included in the scope of additional deduction except for instruments and equipment specifically used for R&D activities. Meeting expenses, travel expenses, office expenses, foreign affairs expenses, R&D personnel training expenses, cultivation expenses, expert consulting expenses, communication expenses, patent application maintenance expenses, high-tech R&D insurance expenses, etc. incurred for R&D activities. Special allocation for research and development expenses obtained from the government or parent company. Depreciation or leasing expenses, operation and maintenance, adjustment, inspection and repair expenses of instruments and equipment not dedicated to R&D activities, amortization expenses of intangible assets such as software, patents and non-patented technologies, and development and manufacturing expenses of molds and process equipment for intermediate tests and product trial production. The R&D expenses to be added and deducted emphasize that they are directly related to the enterprise's R&D activities and focus on specialization. If the above instruments, equipment, etc. of an enterprise are used for the production and operation activities of the enterprise in addition to the research and development of new products, new processes and new technologies, the above costs cannot be included in the scope of deduction. Pay attention to the account management of R&D expenses Enterprises should manage R&D expenses in special accounts. Document No. 116 of Guo Shui Fa [2008] stipulates that enterprises must implement special account management for R&D expenses, and if they have not set up a special R&D organization or if the R&D organization of the enterprise undertakes the task of production and operation at the same time, they should separate the R&D expenses from the production and operation expenses, and accurately and reasonably calculate the expenditures of each R&D expense, and if it is not clearly delineated, the additional deduction shall not be applied. On December 31, 2013, the Beijing Municipal Bureau of Internal Revenue issued the "Announcement of Beijing Municipal Bureau of National Taxation and Beijing Municipal Bureau of Local Taxation on Relevant Issues Concerning the Strengthening of Taxation Management of Research and Development Expenses of High and New Technology Enterprises" (Beijing Municipal Bureau of National Taxation Announcement [2013] No. 27), which further clarifies that the establishment of auxiliary accounts for research and development expenses by an enterprise is a basic condition for the enterprise to enjoy the high and new technology preferences. Although the document does not regard the auxiliary account for R&D expenses as a necessary condition for enjoying the additional deduction, the auxiliary account for R&D expenses will be the key for enterprises to declare the additional deduction and deal with tax inspection in 2014. Therefore, enterprises should follow the standards and caliber of Article 4(2) of the Notice of the Ministry of Science and Technology, Ministry of Finance and State Administration of Taxation on the Issuance of the Guidelines for the Recognition and Management of High-tech Enterprises (Guo Ke Fa Huo [2008] No. 362) and manage R&D expenses in a special account in accordance with the requirements of accounting. R&D expenses shall be pooled by project. Guo Shui Fa [2008] No. 116 stipulates that if an enterprise carries out multiple research and development activities in a tax year, it shall separately aggregate the amount of deductible research and development expenses in accordance with different development projects. The scope of additional deduction for R&D expenses emphasizes direct relevance, specialization and accuracy, and enterprises can ensure the relevance between R&D projects and R&D expenses only by collecting R&D expenses by projects. The R&D expenses that can enjoy the additional deduction must be the research and development expenditures of the enterprise engaged in the projects stipulated in the Catalogue of High and New Technology Fields of National Key Support (2011 Edition) and the Guide to the Key Fields of the Current Priority Development of High Technology Industrialization (2011 Annual) published by the National Development and Reform Commission and other departments. Therefore, enterprises should choose the fields that meet the requirements for R&D project establishment in order to successfully pass the identification of enterprise research and development projects. There are five adjustments to the policy of adding deduction for R&D expenses: First, the scope of R&D activities to enjoy tax incentives is relaxed. The original R & D costs plus deduction policy, the requirements to enjoy preferential R & D activities must be consistent with the "national key support for high-tech areas" and "the current priority development of high-tech industrialization of key areas of the Guide" two directories. This time, the policy is adjusted, not by adopting the positive enumeration, but the negative enumeration, with reference to the practice of some other countries. Except for those R&D activities that are not suitable to be counted, all others can be included in the scope of preferential treatment as R&D activities with additional deduction. That is to say, from the operation, including the clarity of the policy, from the original positive enumeration has become a counter-enumeration, some of the new industry as long as not in the scope of the exclusion, can be practiced plus deduction. The second is to expand the scope of expenses enjoying tax incentives for deduction. The original enjoyment of preferential R & D costs are only limited to the costs of full-time R & D personnel, as well as materials specifically for R & D costs, depreciation of instruments and equipment, amortization of intangible assets, etc., does not include external R & D personnel, such as labor costs. This has resulted in some R&D activities, including some R&D activities undertaken by the enterprise***, not being able to be fully accounted for within the scope of R&D expenses. This policy adjustment, on the basis of the scope of the original allowable deduction costs, and external personnel labor costs, trial product inspection fees, expert consulting fees, high-tech R & D insurance premiums and R & D directly related to the travel costs, meeting costs, etc., also included in the scope of R & D costs plus deduction. Thirdly, it simplifies the collection and accounting management of R&D expenses. The original enterprises to enjoy the benefits of additional deduction must be set up separately for R & D expenses, but many enterprises may not be set up separately for special accounting, reporting time will not be eligible. This adjustment, just the requirements are based on the existing accounting entries, in accordance with the R & D subjects to set up auxiliary accounts, auxiliary accounts than the special account is much simplified, so that the enterprise accounting management is more simplified. Fourth, the clear enterprise eligible for R & D costs can be retroactively enjoy the policy. There may be some enterprises in the actual implementation of the process, the original eligible but did not declare, this year in the accounting, found that these activities can be included in the R & D costs plus deductions, you can also apply to the tax authorities, as long as it meets the provisions of the tax policy of deduction at the time, you can go forward for three years. Fifth, reduce the review process. The original enterprise to enjoy the benefits of additional deduction, must be in the annual declaration to the tax authorities to provide all the effective proof, the tax authorities of the enterprise declaration of R & D projects have objections, the need for enterprises to provide scientific and technological departments of the appraisal. The adjusted procedure is to simplify the management of enterprises' enjoyment of additional deduction to filing after the fact, and the relevant information will be retained by the enterprises for record checking, and do not need to be taken to the tax authorities, and will be provided again when the tax authorities want to check the evidence. If there are objections to the R&D project, the tax authority will negotiate directly with the science and technology department, and the science and technology department will provide identification. Enterprises are more convenient, more direct and more efficient in enjoying the policy channel.
Legal Objective:Article 12 of the Law of the People's Republic of China on Enterprise Income Tax In calculating taxable income, the amortization cost of intangible assets calculated by the enterprise in accordance with the regulations is allowed to be deducted. The following intangible assets shall not be deducted from the calculation of amortization expenses: (1) intangible assets whose self-development expenditures have been deducted in the calculation of taxable income; (2) self-created goodwill; (3) intangible assets unrelated to the business activities; (4) other intangible assets for which the deduction of amortization expenses shall not be calculated.