What R&D expenses can be capitalized?
1, direct input costs. For example, the cost of materials, fuel and power directly consumed by R&D activities, various costs for intermediate tests and product trial production, and the cost of instruments and equipment rental fees for R&D activities
2. Personnel labor costs. Wages and salaries of personnel directly engaged in R&D activities, basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, industrial injury insurance premiums, maternity insurance premiums and housing provident fund, as well as labor costs of external R&D personnel
3. Costs of designing new products, formulating new process protocols, conducting clinical trials for the development of new medicines, and conducting on-site trials of exploration and development technologies
4. Depreciation expenses . Depreciation expenses for instruments and equipment used in R&D activities
5. Amortization of intangible assets. Amortization expense of software, patent rights, and non-patented technology used for R&D activities
6. Other related expenses. Other costs directly related to R & D activities
7, the Ministry of Finance and the State Administration of Taxation of other costs
Simply put, is the enterprise for R & D costs can be included in the enterprise R & D costs
In fact, know the above R & D costs plus deduction of the knowledge, will be able to know the R & D costs of the tax treatment
R&D
1, the enterprise research phase of the expenditure is fully expensed, recognized in the current profit and loss.
The entries are:
Borrow: R&D expenditures-expensed expenditures
Loan: bank deposits/cash/raw materials
At the end of the month, it will be charged to the profit and loss of the current period at one time
Borrow: administrative expenses-R&D expenditures
Loan: R&D expenditures-expended expenditures
2. Expenditures at development stage, which don't meet the conditions of capitalization Included in the current profit and loss (the same entry as the research stage expenditure above).
The entries are:
Borrow: R&D Expenditures - Expensed Expenditures
Loan: Bank Deposits/Cash/Raw Materials
At the end of the month, it is charged to the current profit and loss
Borrow: Administrative Expenses - R&D Expenditures
Loan: R&D Expenditures - Expended Expenditures
3. Expenditures during the development phase, which meet the conditions for capitalization need to be capitalized.
The entries are as follows:
Borrow: R & D expenditures - capitalized expenditures
Loan: bank deposits / cash / raw materials
Borrow: intangible assets
Loan: R & D expenditures - capitalized expenditures R & D expenditures at the end of the period need to be carried forward?