Notice of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Science and Technology on Improving the Pre-tax Deduction Policy for Research and Development Expenses
Caishui  No. 119
The finance departments (bureaus), state taxation bureaus, local taxation bureaus, and science and technology departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning, and the Finance Bureau and Science and Technology Bureau of Xinjiang Production and Construction Corps:
According to the relevant provisions of the "Enterprise Income Tax Law of the People's Republic of China" and its implementing regulations, in order to further implement the spirit of the "Several Opinions of the Central Committee of the Communist Party of China and the State Council on Deepening the Reform of Institutions and Mechanisms and Accelerating the Implementation of the Innovation-Driven Development Strategy", to better encourage enterprises to carry out research and development activities (hereinafter referred to as “R&D activities”) and standardizing the preferential policies for the super deduction of enterprise research and development expenses (hereinafter referred to as “R&D expenses”), the relevant issues regarding the pre-tax deduction of corporate research and development expenses are hereby notified as follows:
XNUMX. The scope of R&D activities and R&D expenses.
The term “R&D activities” as mentioned in this notice refers to the systematic activities with clear goals that enterprises continuously conduct to acquire new knowledge of science and technology, creatively apply new knowledge of science and technology, or substantially improve technology, products (services), and processes.
(XNUMX) R&D expenses that are allowed to be super-deducted.
If the R&D expenses actually incurred in the R&D activities of the enterprise do not form intangible assets and are included in the current profit and loss, 50% of the actual amount incurred in the current year shall be deducted from the taxable income of the current year on the basis of actual deduction according to regulations; For intangible assets, 150% of the cost of the intangible assets shall be amortized before tax.The specific scope of R&D expenses includes:
1. Personnel and labor costs.
Salaries, basic endowment insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and housing provident funds for personnel directly engaged in R&D activities, as well as labor costs for external R&D personnel.
2. Direct input costs.
(1) Materials, fuel and power costs directly consumed by R&D activities.
(2) The development and manufacturing costs of molds and process equipment used for intermediate tests and product trial production, the purchase costs of samples, prototypes and general testing methods that do not constitute fixed assets, and the inspection costs of trial products.
(3) Expenses for the operation, maintenance, adjustment, inspection, and maintenance of instruments and equipment used for R&D activities, as well as the lease fees for instruments and equipment used for R&D activities leased through operating leases.
3. Depreciation expense.
Depreciation of instruments and equipment used for research and development activities.
4. Amortization of intangible assets.
Amortized expenses for software, patent rights, non-patented technology (including licenses, know-how, designs and calculation methods, etc.) used in research and development activities.
5. New product design fee, new process specification formulation fee, clinical trial fee for new drug development, and field trial fee for exploration and development technology.
6. Other related expenses.
Other expenses directly related to research and development activities, such as technical book materials fees, data translation fees, expert consultation fees, high-tech research and development insurance fees, research and development results retrieval, analysis, evaluation, demonstration, appraisal, review, evaluation, acceptance fees, knowledge Property rights application fee, registration fee, agency fee, travel fee, conference fee, etc.The total amount of such expenses shall not exceed 10% of the total deductible research and development expenses.
7. Other expenses stipulated by the Ministry of Finance and the State Administration of Taxation.
(XNUMX) The following activities are not applicable to the pre-tax deduction policy.
1. Regular upgrade of enterprise products (services).
2. The direct application of a scientific research achievement, such as the direct adoption of new public processes, materials, devices, products, services or knowledge.
3. The technical support activities provided by the enterprise to customers after commercialization.
4. Duplicate or simple changes to existing products, services, technologies, materials or processes.
5. Market research, efficiency research or management research.
6. As an industrial (service) process link or routine quality control, test analysis, repair and maintenance.
7. Studies in the social sciences, arts or humanities.
XNUMX. Handling of special matters
1. The expenses incurred by the enterprise entrusting external institutions or individuals to carry out research and development activities shall be included in the research and development expenses of the entrusting party according to 80% of the actual amount of expenses and calculated for super deduction, and the commissioned party shall not make additional deductions.The actual amount of the entrusted external research and development expenses shall be determined in accordance with the arm's length principle.
If the entrusting party has an associated relationship with the entrusting party, the entrusting party shall provide the entrusting party with the details of the expenditure of the R&D project.
Expenses incurred by enterprises entrusting overseas institutions or individuals to conduct research and development activities shall not be deducted.
2. For projects jointly developed by enterprises, the cooperating parties shall calculate and deduct the R&D expenses actually borne by themselves.
3. According to the actual situation of production, operation and scientific and technological development, the actual R&D expenses incurred by the enterprise group for projects with high technical requirements and large investment amount that need to be concentrated in research and development can be consistent with rights and obligations, and the expenses and revenue sharing can be matched. According to the principle of ratio, the allocation method of R&D expenses is reasonably determined, and the allocation is carried out among the beneficiary member enterprises, and the relevant member enterprises calculate the super deduction respectively.
4. The relevant expenses incurred by enterprises for creative design activities to obtain innovative, creative and breakthrough products can be deducted before tax in accordance with the provisions of this notice.
Creative design activities refer to multimedia software, animation game software development, digital animation, game design and production; housing construction engineering design (three-star green building evaluation standard), landscape architecture engineering special design; industrial design, multimedia design, animation and derivative product design , model design, etc.
XNUMX. Accounting and management
1. Enterprises should account for R&D expenses in accordance with the requirements of the national financial accounting system; at the same time, set up auxiliary accounts for R&D expenses that enjoy super deduction according to the R&D project, and accurately collect and account for the actual R&D expenses that can be super-deducted in the current year. amount.If an enterprise conducts multiple R&D activities in one tax year, it shall collect the R&D expenses that can be deducted separately according to different R&D projects.
2. Enterprises should account for R&D expenses and production and operation expenses separately, and collect various expenses accurately and reasonably. If the division is unclear, no additional deduction shall be implemented.
XNUMX. Industries that do not apply the pre-tax deduction policy
1. Tobacco manufacturing.
2. Accommodation and catering industry.
3. Wholesale and retail trade.
4. Real estate.
5. Leasing and business services.
6. Entertainment industry.
7. Other industries specified by the Ministry of Finance and the State Administration of Taxation.
The above industries are subject to the "National Economic Industry Classification and Code (GB/4754-2011)" and will be updated accordingly.
V. Management matters and requirements for collection and management
1. This notice applies to resident enterprises that have sound accounting, implement audit collection, and can accurately collect research and development expenses.
2. If the actual amount of the R&D expenses of the enterprise is inaccurately collected or the aggregated amount is calculated inaccurately, the tax authority has the right to make reasonable adjustments to the pre-tax deduction or super-deduction.
3. If the tax authority has any objection to the R&D projects for which the enterprise enjoys the preferential deduction, it may refer it to the administrative department of science and technology at the prefecture level (inclusive) or above to issue an appraisal opinion, and the science and technology department shall reply to the opinion in a timely manner.Enterprises undertaking scientific research projects at the provincial and ministerial level (inclusive) or above, as well as multi-year R&D projects that have been identified in previous years, no longer need to be identified.
5. The tax department should strengthen the follow-up management of the preferential policies for the super deduction of research and development expenses, and conduct regular inspections, and the annual inspection coverage should not be less than 20%.
XNUMX. Execution time
Ministry of Finance, State Administration of Taxation, Ministry of Science and Technology
Nov. 2015, 11
The purpose of reprinting is to spread more national policies to readers, help readers understand national policies, and integrate government and enterprises.