The scope of R&D expenses that are allowed to be deducted 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, 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 fees, data translation fees, expert consulting fees, high-tech R & D insurance premiums, R & D results of the search, analysis, comments, demonstration, appraisal, evaluation, assessment, 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, the Ministry of Finance and the State Administration of Taxation of other costs.
Expanded Information
Accounting for deductions is a kind of tax-base preferential method of enterprise income tax, according to the tax law in the actual amount of expenditure incurred on the basis of the amount of a certain percentage, as the amount of deduction for the calculation of taxable income.
According to the current policy, the research and development expenses for the development of new technologies, new products and new processes, which are not formed into intangible assets for current profit and loss, will be deducted in accordance with the provisions of the actual deduction on the basis of 50% of the research and development expenses; and if the intangible assets are formed, they will be amortized at 150% of the cost of the intangible assets.
For science and technology-based small and medium-sized enterprises (SMEs), from January 1, 2017, to December 31, 2019, the proportion of additional deduction for R&D expenses was raised from 50% to 75%.
China Accounting Network - What is included in the scope of R&D expenditure allowed to be added and deducted