Today, I'd like to take you to understand: the policy of adding deduction for commissioned, cooperative and centralized R&D expenses
The policy of adding deduction for commissioned, cooperative and centralized R&D expenses
Applicable Subjects
Except for the tobacco manufacturing industry, the lodging and catering industry, the wholesale and retail trade, the real estate industry, the leasing and business service industry, and the entertainment industry, enterprises of all other industries are entitled to enjoy it.
Determination Criteria
1. Expenses incurred by an enterprise entrusting R&D activities to an external organization or an individual shall be included in the R&D expenses of the entrusted party in accordance with 80% of the actual amount of the expenses incurred and shall be calculated as a deduction, and no deduction shall be allowed to be added by the entrusted party. Costs incurred for commissioning R&D activities outside China shall be included in the commissioning party's commissioned overseas R&D expenses in accordance with 80% of the actual amount of costs incurred. The part of the commissioned overseas R&D expenses not exceeding two-thirds of the qualified R&D expenses within the country can be deducted before the enterprise income tax in accordance with the regulations.
2. Enterprises *** with the cooperative development of the project, by the cooperation of the parties to their own actual R & D costs borne by the calculation of additional deduction.
3. According to the actual situation of production and operation and scientific and technological development of enterprise groups, for the projects with high technological requirements, large amount of investment and the need for centralized research and development, the actual incurred R&D expenses can be reasonably determined in accordance with the principle of consistency of rights and obligations, matching of expenses and revenue sharing, and the apportionment of R&D expenses can be apportioned among beneficiary members, and the relevant members can calculate the additional deduction separately. The relevant member enterprises will calculate the additional deduction respectively.
Policy Basis
1. Notice of the Ministry of Finance, State Administration of Taxation, Ministry of Science and Technology on Improving the Policy of Pre-tax Deduction of Research and Development Expenses (Cai Shui [2015] No. 119)
2. Notice of the Ministry of Finance, State Administration of Taxation, Ministry of Science and Technology on the Issues Concerning the Policies for Pre-tax Deduction of Research and Development Expenses Commissioned by Enterprises Overseas (Cai Shui [2018] No. 64)
3. No.