1. Scope of application of R&D expenses plus deduction policy

Applicable industries

Except tobacco manufacturing, accommodation and catering, wholesale and retail, real estate, leasing and business services, and entertainment, other enterprises can enjoy

Applicable activities

Enterprises can creatively use new scientific and technological knowledge or substantially improve technology, products (services) in order to acquire new scientific and technological knowledge.

The pre-tax deduction policy is not applicable to the following activities:

1. Regular upgrading of enterprise products (services).

2. the direct application of a scientific research achievement, such as the direct adoption of open new technologies, materials, devices, products, services or knowledge.

3. Technical support activities provided by enterprises to customers after commercialization.

4. Repeated or simple changes to existing products, services, technologies, materials or technological processes.

5. Market research, efficiency survey or management research.

6. As an industrial (service) process link or routine quality control, test analysis and maintenance.

7. Research in social science, art or humanities.

Policy basis

Notice of the Ministry of Finance _ State Taxation Administration of The People's Republic of China _ Ministry of Science and Technology on Improving the Pre-tax Plus Deduction Policy for R&D Expenses (Caishui [2115] No.119)

II. R&D expenses of enterprises other than manufacturing industries are deducted by adding 75%

Applicable subjects

Enterprises other than manufacturing industries are excluded from tobacco manufacturing, accommodation and catering, and wholesale.

preferential contents

if the actual R&D expenses incurred by an enterprise in R&D activities do not form intangible assets and are included in the current profits and losses, before February 31, 2123, on the basis of actual deduction according to regulations, 75% of the actual amount will be deducted before tax; Where intangible assets are formed, they shall be amortized before tax according to 1.75% of the cost of intangible assets during the above period.

Policy basis

1. Notice of Ministry of Finance _ State Administration of Taxation _ Ministry of Science and Technology on Increasing the Pre-tax Deduction Ratio of Research and Development Expenses (Caishui [2118] No.99)

2. Announcement of Ministry of Finance _ State Administration of Taxation on Extending the Implementation Period of Some Preferential Tax Policies (No.6, 2121)

3, The R&D expenses of manufacturing enterprises will be increased to 111%

Applicable subjects

Manufacturing enterprises

Preferential contents

If the R&D expenses actually incurred by manufacturing enterprises in R&D activities do not form intangible assets and are included in the current profits and losses, on the basis of actual deduction according to regulations, it will be deducted before tax according to 111% of the actual amount from October 1, 2121; Where intangible assets are formed, they shall be amortized before tax according to 211% of the cost of intangible assets from October 1, 2121.

Policy basis

1. Notice of the Ministry of Finance _ State Taxation Administration of The People's Republic of China _ Ministry of Science and Technology on Improving the Pre-tax Plus Deduction Policy for Research and Development Expenses (Caishui [2115] No.119)

2. Notice of the Ministry of Finance _ State Administration of Taxation _ Ministry of Science and Technology on Relevant Policy Issues Concerning Pre-tax Plus Deduction of Overseas Research and Development Expenses Entrusted by Enterprises (Caishui [2118] No.64) < Announcement on the policy of adding and deducting (No.13, 2121)

IV. Determination of whether a multi-industry enterprise belongs to a manufacturing enterprise

Applicable subject

Enterprises with both manufacturing income and other business income

Determination criteria

Manufacturing enterprises are those whose main business is manufacturing business and whose main business income accounts for more than 51% of the total income in the year when they enjoy preferential treatment. If the manufacturing income accounts for less than 51% of the total income, it is other enterprises.

the total income shall be implemented in accordance with article 6 of the enterprise income tax law, which specifically refers to the income obtained by the enterprise from various sources in monetary and non-monetary forms, including the income from selling goods, providing labor services, transferring property, dividends and other equity investment income, interest income, rental income, royalty income, income from accepting donations and other income.

Policy basis

Announcement of the Ministry of Finance and the State Administration of Taxation on Further Improving the Pre-tax Plus Deduction Policy for R&D Expenses (No.13, 2121)

Advance declaration in May and October can enjoy the plus deduction discount for R&D expenses in the first three quarters

Applicable subjects

Except tobacco manufacturing, accommodation and catering, wholesale and retail, real estate, leasing and business services,

preferential contents for enterprises in other industries other than entertainment industry

In the middle of 2121, enterprises can choose to enjoy the preferential policy of adding and deducting R&D expenses in the first three quarters when they file corporate income tax in the third quarter of that year (quarterly prepayment) or September (monthly prepayment) in advance.

adopt the handling methods of "real occurrence, self-judgment, declaration and enjoyment, and relevant materials are kept for future reference". Eligible enterprises shall calculate the additional deduction amount on their own according to the actual R&D expenses, fill in the Monthly (Quarterly) Prepaid Tax Return of Enterprise Income Tax of the People's Republic of China (Class A) to enjoy the tax preference, and fill in the Detailed List of Additional Deduction Preferences for R&D Expenses (A117112) according to the R&D expenses enjoying the additional deduction preference (without submitting it to the tax authorities).

enterprises can also choose not to enjoy the preferential deduction of R&D expenses in the first three quarters when they pay in advance in October, but to enjoy it when they settle the 2121 corporate income tax in the following year.

Policy basis

1. Announcement of State Taxation Administration of The People's Republic of China on Issuing the Revised Measures for Handling Preferential Policies for Enterprise Income Tax (No.23, 2118)

2. Announcement of State Taxation Administration of The People's Republic of China on Further Implementing the Policy of R&D Expenses Plus Deduction (No.28, 2121)

6. Add the auxiliary account style of optimizing and simplifying R&D expenditures

. Enterprises in industries other than accommodation and catering, wholesale and retail, real estate, leasing and business services, and entertainment

Policy content

When setting up supplementary accounts according to R&D projects, enterprises can independently choose to use the 2115 version of the R&D expenditure supplementary account style or the 2121 version of the R&D expenditure supplementary account style, or they can design their own R&D expenditure supplementary account style with reference to the above styles.

The auxiliary account style of R&D expenditure designed by the enterprise itself should include the data items listed in the auxiliary account style of R&D expenditure in the 2121 edition, and the logical relationship is consistent, which can accurately collect the R&D expenses that are allowed to be added and deducted.

in order to facilitate small and medium-sized enterprises to enjoy preferential policies in compliance, the 2121 version of the R&D expenditure supplementary account style reduces the difficulty of filling in, which is available for all enterprises to choose.

Policy basis

1. Announcement of State Taxation Administration of The People's Republic of China on Relevant Issues Concerning the Pre-tax Plus Deduction Policy of Enterprise R&D Expenses (No.97, 2115)

2. Announcement of State Taxation Administration of The People's Republic of China on Further Implementing the Plus Deduction Policy of R&D Expenses (No.28, 2121)

VII. Adjusting and optimizing the calculation method of "other related expenses" limit

. Enterprises in other industries other than accommodation and catering, wholesale and retail, real estate, leasing and business services, and entertainment

Preferential contents

If enterprises carry out multiple R&D activities at the same time in a tax year, the "other related expenses" limit for each R&D project will be calculated separately from the original one, and the "other related expenses" limit for all R&D projects will be calculated in a unified way.

the enterprise calculates the limit of "other related expenses" according to the following formula, in which the expenses incurred by capitalized projects are uniformly included in the calculation in the year when intangible assets are formed:

the limit of other related expenses of all R&D projects = the sum of five expenses such as personnel labor of all R&D projects × 11%/(1-11%)

"five expenses such as personnel labor" includes "personnel labor cost" and "direct input".

when the actual amount of "other related expenses" is less than the limit, the pre-tax deduction shall be calculated according to the actual amount; When the actual number of "other related expenses" is greater than the limit, the pre-tax deduction will be calculated according to the limit. Simplifies the calculation method, allows multiple items of "other related expenses" to be adjusted, and generally increases the deductible amount.