Enterprise R&D expenses include:
(i) the cost of materials, fuel and power directly consumed by R&D activities.
(ii) Labor costs such as salaries, bonuses, allowances, subsidies, social insurance premiums, housing provident fund, etc. of an enterprise's in-service R&D personnel and labor costs of external R&D personnel.
(iii) Depreciation or rental expenses of fixed assets such as instruments, equipment and houses used for R&D activities, as well as expenses for operation, maintenance and repair of related fixed assets.
(iv) Amortization expenses of intangible assets such as software, patents and non-patented technologies used in R&D activities.
(v) for intermediate testing and product trial production of molds, process equipment development and manufacturing costs, equipment adjustment and inspection costs, samples, prototypes and general test means of acquisition, test products inspection costs.
(F) R & D results of the demonstration, evaluation, acceptance, assessment, and intellectual property rights application fees, registration fees, agency fees and other costs.
(7) through outsourcing, cooperative R & D and other ways, entrusted to other units, individuals, or with the cooperation of R & D and the payment of fees.
(viii) other costs directly related to R & D activities, including technical library and information costs, data translation costs, meeting costs, travel, office expenses, foreign affairs, R & D personnel training costs, training costs, expert consulting fees, high-tech R & D insurance costs.
Office supplies received by R&D personnel can be included in R&D expenses. China's accounting standards for the treatment of R & D costs are divided into two major parts: first, the costs incurred in the research stage and the inability to distinguish between the research stage R & D expenditures and development stage R & D expenditures are fully expensed; second, the development stage of the enterprise's internal research and development project expenditures that can be demonstrated to meet the conditions of the intangible asset is capitalized, amortized in installments.
Expanded Information
The following expenses incurred by enterprises engaged in R&D activities can be included in the scope of pre-tax deduction of research and development expenses:
(a) The basic pension insurance premiums, basic medical insurance premiums, basic medical insurance premiums, and basic medical insurance premiums paid by enterprises to the relevant competent departments of the State Council or the people's government of the provincial level for the on-the-job personnel directly engaged in the research and development activities in accordance with the scope and standard prescribed by the State Council or the people's government. Pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, industrial injury insurance premiums, maternity insurance premiums and housing fund.
(ii) The operation and maintenance, adjustment, inspection and repair costs of instruments and equipments specifically used for R&D activities.
(iii) Purchase costs of samples, prototypes and general testing means that do not constitute fixed assets.
(iv) Costs of clinical trials for the development of new drugs.
(v) Costs of appraisal of research and development results.
Baidu Encyclopedia - R & D expenses
People's Daily Online - Ministry of Finance: enterprise R & D part of the cost of pre-tax deduction