What are the R D expenses that can be deducted?

Xiao Wang: This is very similar to the direct cost in the production cost.

Xiao Wang: It mainly reflects the saving of resources, the improvement of efficiency, the improvement of energy conservation and environmental protection, and the improvement of product performance and function in the process of product manufacturing.

Xiao Wang: There should be, including samples, as well as research waste, defective products, etc.

Xiao Wang: Yes, there should be.

Xiao Wang: Considering the principle of accounting proportion, the corresponding R&D expenses should be reduced.

Teacher: In practice, in the process of research and development, there are inputs of tangible products such as materials, but the output is neglected. For example, a steel mill carried out research and development for a new type of special steel, carried out trial production in the same year, invested direct materials such as ore, limestone, coal, electricity, etc., and applied for additional deduction of R&D expenses as required in the current period.

After the audit, the tax authorities found that although the trial production of the plant failed, the steel produced by it was still special steel, and it was sold in the current period, and its profits even far exceeded the current R & D expenses. Finally, the tax authorities excluded this part of the direct materials invested in trial production from the declaration amount of R&D expenses for additional deduction.

Teacher: Yes, this is the difficulty, the tax authorities are analyzed from the perspective of proportioning, if you take the words of the above documents, it is difficult to understand the actions of the tax authorities. However, Article 9 of the article also stipulates that if an enterprise does not set up a special R&D institution or an enterprise R&D institution undertakes production and operation tasks at the same time, the R&D expenses and production and operation expenses shall be accounted for separately, and the R&D expenses shall be accurately and reasonably calculated.

It can be seen that the original intention of the document is to distinguish between "the cost of materials, fuel and power directly consumed in R&D activities" and the cost of production and operation.

Xiao Wang: So that's the case, it seems that reading documents is really not a simple matter.

Teacher: The new "Enterprise Income Tax Law" has very clear provisions on the conditions for high-tech enterprises enjoying tax incentives to apply for the recognition of additional deduction of R&D expenses, but there are still some enterprises that include the expenses that were originally production costs in R&D expenses, and even deduct this R&D expenses, which is a new situation that we need to pay attention to.

What R&D expenses can be deducted?

First, the front. The scope of additional deduction of R&D expenses includes 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, work-related injury insurance premiums, maternity insurance premiums and housing provident fund, as well as labor expenses of external R&D personnel. Direct input costs, the cost of materials, fuel and power directly consumed by R&D activities.

Depreciation expense, depreciation expense of instruments and equipment used for R&D activities. Amortization of intangible assets, amortization expenses of software, patent rights, and non-patented technologies used for R&D activities. Other related fees.

2. Analyze the details.

The wages, salaries, bonuses, allowances and subsidies of on-the-job personnel directly engaged in R&D activities can be deducted, therefore, the expenses that are closely related to the amount of wages listed or paid by enterprises for on-the-job personnel directly engaged in R&D activities, such as employee welfare expenses, employee education expenses, trade union funds, pension insurance premiums, medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and other social insurance premiums and housing provident fund and other three fees, five insurances and one housing fund cannot be deducted. In addition, they must be on-the-job personnel directly engaged in R&D activities, so even if they are directly engaged in R&D activities, but are non-in-service temporary external R&D personnel, or personnel who provide direct management and services for R&D activities, the salaries, salaries, bonuses, allowances, subsidies, etc. of these personnel cannot be deducted.

3. What are the other related expenses that are additionally deducted from R&D expenses?

Other expenses directly related to R&D activities, such as technical library fees, data translation fees, expert consultation fees, high-tech R&D insurance premiums, R&D results retrieval, analysis, evaluation, demonstration, appraisal, review, evaluation, acceptance fees, intellectual property application fees, registration fees, ** fees, travel expenses, conference fees, etc. The total amount of this expense shall not exceed 10% of the total amount of R&D expenses that can be deducted. Other fees as prescribed by the Ministry of Finance and the State Administration of Taxation.

In accordance with the provisions of the tax law, on the basis of the actual amount of research and development expenses incurred in the development of new technologies, new products and new processes, a certain proportion is added as a preferential tax policy for the deduction amount when calculating the taxable income.

For example, the tax law stipulates that R&D expenses can be deducted by 150%, and if the actual R&D expenses of an enterprise developing new products in the current year is 100 yuan, it can be deducted before tax at 150 yuan (100 150%), so as to encourage enterprises to increase R&D investment and be cautious.

In May 2017, the State Administration of Taxation issued Cai Shui 2017 No. 34 "Notice of the Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology on Increasing the Pre-tax Deduction Ratio of Research and Development Expenses of Small and Medium-sized Science and Technology Enterprises", which clearly pointed out:

If the R&D expenses actually incurred by small and medium-sized technology-based enterprises in R&D activities are not included in the current profit or loss as intangible assets, they shall be deducted before tax according to 75% of the actual amount during the period from January 1, 2017 to December 31, 2019 on the basis of deduction according to the regulations;

If an intangible asset is formed, it shall be amortized before tax at 175% of the cost of the intangible asset during the above-mentioned period.

What R&D expenses can be deducted?

First, the front. The tax law stipulates that R&D expenses can be deducted by 175% plus family registers, and if the actual expenditure of R&D expenses for the development of new products is 100 yuan, it can be deducted before tax at 175 yuan 100 175%, so as to encourage enterprises to increase R&D investment.

2. Analyze the details.

The management of the R&D expense plus deduction policy is all implemented by the tax department. However, due to the lack of experts in the field of R&D, it is difficult for tax authorities to accurately identify the R&D activities of enterprises. For example, whether the enterprise has achieved valuable results in technology, technology, product and service innovation through research and development activities, and whether it has a role in promoting the technology and process leadership of relevant industries in the region.

R&D expenses are difficult to accurately collect. Accurate accounting and collection of R&D expenses is a prerequisite for enterprises to enjoy the additional deduction policy. In practice, for some enterprises that have not yet set up a special R&D institution or a R&D institution that undertakes production and operation business at the same time, according to the requirements, the expenses that can be accounted for separately and belong to the nature of R&D can also be deducted.

However, it is difficult for both sides to determine whether the division is reasonable and accurate.

3. What is the deduction ratio of R&D expenses?

The additional deduction of R&D expenses refers to the R&D expenses incurred by enterprises for the development of new technologies, new products and new processes, which can be deducted before tax on the basis of deduction according to the provisions when calculating the taxable income of enterprise income tax. The state has increased the pre-tax deduction ratio of R&D expenses for manufacturing enterprises from 75% to 100%, and non-manufacturing enterprises will deduct 75% of R&D expenses before tax.

The specific scope of R&D expenses that are allowed to be deducted includes:

1) Personnel and labor costs;

2) direct input costs;

3) depreciation expense;

4) amortization expense of intangible assets;

5) New product design costs, new process specification formulation fees, new drug development clinical trial fees, exploration and development technology field test fees;

6) Other related expenses. Dust.