How researchers are paid

The deduction of research and development expenses has always been a difficult point in the practical work of enterprises. In this regard, the "pre-tax deduction of enterprise research and development costs management law (for trial implementation)" (Guo Shui Fa 〔2008〕 No. 116, hereinafter referred to as "No. 116") from eight aspects of the scope of the research and development costs can be deducted made provisions.　　Article 4 of Document 116 stipulates: "Enterprises engaged in the research and development activities of the projects stipulated in the "High and New Technology Fields of National Key Support" and the "Guide to the Key Fields of High Technology Industrialization for Current Priority Development (2007)" published by the National Development and Reform Commission and other departments are allowed to deduct the following expenses actually incurred in a taxable year when calculating taxable income (i) Fees for designing new products, formulating new process protocols, and technical library and data translation fees directly related to R&D activities. (ii) The cost of materials, fuel and power directly consumed in R&D activities. (iii) Wages, salaries, bonuses, allowances and subsidies of in-service personnel directly engaged in R&D activities. (iv) Depreciation or rental costs of instruments and equipment used exclusively for R&D activities. (v) Amortization expense of intangible assets such as software, patents, non-patented technologies, etc. used exclusively for R&D activities. (vi) Development and manufacturing costs of molds and process equipment used exclusively for intermediate tests and product trials. (vii) Field trial expenses for exploration and development technologies. (viii) Costs of demonstration, evaluation and acceptance of research and development results." Although the 116th made eight specific provisions, but enterprises in the day-to-day tax practice often also appear some can not correctly determine whether the development costs can be deducted, such as some of the eight costs related or similar, or from the accounting point of view should be used as a research and development costs, but does not belong to the scope of the eight costs in the end of the question of whether or not to add deductions. To this end, the author of the four aspects of the specific costs that are easy to question but not deductible are analyzed as follows.　　According to the 116th, "on-the-job directly engaged in research and development activities, wages, salaries, bonuses, allowances, subsidies" can be deducted, therefore, the enterprise for on-the-job directly engaged in research and development activities, although the expenses charged or paid for the personnel closely related to the amount of wages, such as employee benefits, employee education expenses, labor union funds, pension insurance premiums, Medical insurance premiums, unemployment insurance premiums, industrial injury insurance premiums, maternity insurance premiums and other social insurance premiums and housing provident fund "three fees, five insurance, one gold" are not deductible. In addition, due to the provisions of the 116th must be "on-the-job directly engaged in R & D activities," so even if they are directly engaged in R & D activities, but belong to the non-service of the temporary external R & D personnel, or for the research and development activities to provide direct management and services to the personnel, this part of the personnel's salaries, wages, bonuses, allowances, subsidies, etc. can not be added to the deduction. are also not eligible for additional deduction.　　Since Article 116 stipulates that "depreciation or rental expenses of instruments and equipment used exclusively for R&D activities" can be deducted, on the one hand, even if the instruments and equipment are used by enterprises for R&D activities, but the expenses for maintenance, repair, alteration and modification of the operation of these instruments and equipment (including the period expenses and capitalized expenses) can not be deducted; on the other hand, the expenses for the maintenance, repair, modification and modification of the operation of these instruments and equipment (including the period expenses and capitalized expenses) can not be deducted. On the other hand, the depreciation expense and rental expense, as well as the maintenance, repair, alteration and modification expenses (including period expenses and capitalized expenses) incurred for other fixed assets that are not in the category of instruments and equipment used by the enterprise for R&D activities are also not deductible; for example, houses, buildings and means of transportation such as automobiles used for R&D activities; furthermore, the depreciation expense and rental expense of instruments and equipment that are used both for R&D activities and general production are also not deductible. In addition, depreciation and rental expenses for instruments and equipment used for both R&D activities and general production, as well as expenses incurred for maintenance, repair, alteration and modification are not deductible because they are not specialized.　　No. 116 stipulates that "the development and manufacturing costs of molds and process equipment used exclusively for intermediate testing and product trial production" can be deducted, so the adjustment and inspection costs of equipment used for intermediate testing and product trial production, the purchase of samples, prototypes and general testing means, and the inspection costs of the trial products can not be deducted. According to Article 116, "the demonstration, evaluation and acceptance costs of R&D results" can be deducted, so the evaluation of R&D results and the application, registration and agency fees of intellectual property rights can not be deducted.　　In addition, because No. 116 does not provide for other costs directly related to R & D activities can be deducted, so the enterprise incurred with R & D activities have a direct relationship with some of the other costs can not be deducted, such as conference fees, travel, official expenses, communication costs, foreign affairs, R & D personnel training fees, training fees, expert consulting fees, high-tech R & D insurance costs.　　However, it must be noted that the expenditure on maintenance of intellectual property rights, litigation fees, agency fees, "counterfeiting" and other related costs incurred both within and outside the country after obtaining intellectual property rights in accordance with the law for R&D activities of an enterprise should be factually expensed from the administrative expenses, and should not be categorized as research and development expenses, nor can it be added and deducted.　　Article 8 of Article 116 stipulates: "Costs and expenditure items that are not allowed to be deducted before enterprise income tax by laws, administrative regulations and the State Administration of Taxation are not allowed to be included in research and development costs." Therefore, even if the costs and expenses incurred by an enterprise can be included in costs or expenses in accordance with the provisions of the Accounting Standards for Enterprises or the Accounting System for Enterprises, but are not deductible before income tax in accordance with the provisions of the tax law, none of them can be deducted in accordance with the research and development expenses to implement the additional deduction. For example, the enterprise for research and development of new product design fees, new process protocol development costs or data translation costs because of the lack of compliant documents and can not be deducted before tax; and, for example, due to the wages issued to the R & D staff wages, salaries are not fulfilled in accordance with the law on behalf of the obligation to withhold and pay personal income tax can not be deducted part of the pre-tax deduction.