1. Preliminary Business Activities
(1) Business Engagement Letter
2. Planned Audit
3. Risk Assessment
4. Understanding of Internal Controls
5. Further Audit Procedures Implemented on Research and Development Expenses
(i), Control testing
(ii), Substantive procedures
6, Further audit procedures implemented on revenues from high-tech products (services)
7, Special audit report
II. Skills to be mastered by high-tech enterprises in responding to audits and inspections by competent authorities
1, Establishment of high-tech revenues and R&D expenses ledgers;
2, Organize sales contracts and invoices;
3, establish and improve the company's various management systems;
4, R & D expenses accounted for on the basis of
Three, high-tech enterprise tax relief and additional deductions
1, recognized as qualified high-tech enterprises, from the recognition (review) approved by the validity of the current year, you can apply to enjoy the enterprise income tax concessions. After obtaining the qualification of high-tech enterprise, the enterprise shall submit a copy of the certificate of high-tech enterprise to the competent tax authority and fill in the "Enterprise Income Tax Preferences Filing Form" for prior filing.
After the end of the tax year and before filing the annual tax return, the enterprises that have applied for prior filing of tax exemption shall file the following information with the competent tax authorities:(1) the description of the products (services) belonging to the scope stipulated in the "High and New Technology Areas of National Key Support";
(2) the detailed table of the structure of the enterprise's annual research and development expenditure;
(3) Explanation of the proportion of the enterprise's revenue from high-tech products (services) to the enterprise's total revenue for the year;
(4) Explanation of the proportion of the enterprise's technical personnel with college degree or above to the enterprise's total number of employees for the year, and explanation of the proportion of R&D personnel to the enterprise's total number of employees for the year;
(5) other information required by the tax authorities.
2. Risk Prevention
Article 15 of the State Science and Technology Development Fire [2008] No. 172 The recognized high-tech enterprises shall be disqualified if any of the following cases occur:(1) Providing false information in the process of applying for recognition;
(2) Committing acts of stealing or cheating taxes;
(3) Occurring major safety and quality accidents;
(iv) Any violation of laws and regulations, such as the environment, which has been penalized by the relevant authorities.
Enterprises that have been disqualified as high-tech enterprises, the accreditation body will not accept the application for accreditation of the enterprise within five years.
3. Additional Deduction for Research and Development Costs
(1) Expenditures for research and development costs incurred by an enterprise in developing new technologies, products and processes can be deducted when calculating taxable income. (Article 30 of the Enterprise Income Tax Law)
(2) If the expenses are not formed into intangible assets to be recognized as current profit and loss, they shall be deducted on the basis of actual deduction in accordance with the regulations at 50% of the research and development expenses; if the expenses are formed into intangible assets, they shall be amortized at 150% of the cost of the intangible assets. (Article 95 of the Implementing Regulations)
4, tax regulations
"Administrative Measures for Pre-tax Deduction of Enterprise Research and Development Expenses (for Trial Implementation)" - Guo Shui Fa [2008] No. 116
(1) Allowed to add deductions for expenses
(1) new product design fees, new process protocol development costs, as well as directly related to the R & D activities of the cost of technical books and materials, data translation costs
(b) engaged in R & D activities directly consumed materials, fuel and power costs
(c) on-the-job directly engaged in the R & D activities of the staff's salaries, wages, bonuses, allowances, subsidies
(d) dedicated to the R & D activities of the instrumentation, equipment, depreciation and Leasing expenses
(v) Amortization expenses of intangible assets such as software, patents, and non-proprietary technologies used exclusively for R&D activities
(vi) Development and manufacturing costs of molds and process equipment used exclusively for intermediate tests and product trial production
(vii) On-site testing costs of exploration and development technologies
(viii) (on-site) demonstration, evaluation, and acceptance costs of R&D results Expenses
(2) Expenses for which no additional deduction is allowed
(i) Social insurance premiums, housing fund and other expenses paid for on-the-job personnel directly engaged in R&D activities
(ii) Salaries and wages of R&D department personnel not directly engaged in R&D activities (including management personnel, security, healthcare, drivers, canteen personnel, tea stoves, plumbers, cleaners and other indirect service (ii) Wages and salaries of personnel in the R&D department not directly engaged in R&D activities (including management personnel, security personnel, healthcare drivers, canteen workers, plumbers, cleaners and other indirect services)
(iii) Labor costs paid to external R&D personnel
(iv) Depreciation or leasing costs of buildings used for R&D activities
(v) Costs of operation, maintenance and repairs of fixed assets, such as instruments, equipment, buildings and other fixed assets, used for R&D activities
(vi) Adjustment of equipment and inspection costs, samples, prototypes, etc., for intermediate tests and product trial production inspection costs, samples, prototypes and general test means purchase costs, trial product inspection costs, etc.
(vii) R & D activities of the trial products or R & D products sold directly to the outside world or as a part of the enterprise for the sale of products, the R & D trial products or product cost of materials, fuel and power costs
(viii) other costs associated with R & D activities, including meeting expenses, travel expenses, office expenses, foreign affairs expenses, travel expenses, and other expenses. , office expenses, foreign affairs expenses, R & D personnel training fees, training fees, expert consulting fees, business hospitality, high-tech R & D insurance costs, etc.
(ix) other expenses other than the eight expenses stipulated in Article 4 of the document Guo Shui Fa [2008] No. 116
(3) Other Provisions
(1) High-tech enterprises that have not declared the additional deduction of R & D expenses for the whole year shall visit the enterprise to verify the reasons and report to the higher authorities as an important doubt.
(2) If the materials and fuels used in R&D activities are not consumed and still have value, they shall be transferred to the production department or to the outside world, and the costs that have already been included in "R&D Expenditures" and "Administrative Expenses" shall be transferred out according to the book value or reasonable apportionment value, and shall not be treated as a transfer out. The value shall be transferred out and shall not be deducted as R&D expenses. If the value cannot be determined, the R&D expenses shall be deducted according to the transfer income obtained.
(C) specifically for intermediate testing and product trial production of molds, process equipment, etc. transferred to the production sector or foreign transfers, the original has been included in the "R & D expenditures", "administrative expenses" and other subjects of the cost should be based on the book value or a reasonable share of the value of the transfer processing, not as R & D expenses. They shall be transferred out and shall not be deducted as R&D expenses. If the value cannot be determined, the R&D expenses shall be deducted according to the transfer income.
D: After acquiring intellectual property rights in accordance with the law, intellectual property rights maintenance fees, litigation fees, agency fees, "counterfeiting" and other related expenses incurred at home and abroad shall be expensed from administrative expenses and shall not be included in R&D expenses.
C: specifically for intermediate testing and product trial production of molds, process equipment, etc. transferred to the production sector or foreign transfers, the original has been included in the "R & D expenditures", "administrative expenses" and other subjects of the cost, should be based on the book value or a reasonable apportionment of value They shall be transferred out and shall not be deducted as R&D expenses. If the value cannot be determined, the R&D expenses shall be deducted according to the transfer income.
D: After the acquisition of intellectual property rights in accordance with the law, intellectual property rights maintenance fees, litigation fees, agency fees, "anti-counterfeiting" and other related costs incurred at home and abroad, from the administrative expenses, should not be included in the R & D costs.