The addition of deductions is processed in the accounts.
Aggregation of R&D expenditures: Enterprises need to collect R&D expenditures when carrying out R&D activities. The contents of the collection include: R&D personnel's salary, material costs, equipment depreciation expenses, amortization of intangible assets, etc. These expenditures should be accounted for separately and separately from the other operating expenses of the enterprise.
Capitalization or expense of R&D expenditures: According to accounting standards, R&D expenditures can be divided into research and development phases. Expenditures incurred during the research phase should be included in profit or loss for the current period when incurred;Expenditures in the development stage that meet the requirements shall be capitalized to form intangible assets. When dealing with R&D expenditures, enterprises need to make judgments based on the actual situation.
Calculation of additional deductions: Enterprises can calculate the amount of additional deductions in accordance with the provisions of the tax law when making annual final settlements. The proportion of additional deduction is usually 50% to 100%, and the specific proportion depends on the industry to which the enterprise belongs, the type of R&D project and other factors.
Additional deduction is recorded: After calculating the additional deduction amount, the enterprise needs to include it in the current profit or loss. The specific operation is as follows: debit the "Income Tax Expense - R&D Expenses Additional Deduction" account, and credit the "Tax Payable - Income Tax Payable" account. In this way, the additional deduction part is recorded.
As a preferential tax policy, the additional deduction aims to encourage enterprises to increase R&D investment and promote scientific and technological innovation. However, many enterprises have doubts about the accounting treatment of the additional deduction part when enjoying this policy. This article will take the theme of "how to record the additional deduction part", and explain it with examples to help you better understand the accounting treatment of additional deductions, and note the relevant regulations to ensure the compliance of the financial treatment of enterprises.
Instance parsing. Suppose that Company A incurs R&D expenditure of 1 million yuan in 2023, of which 400,000 yuan is spent in the research stage and 600,000 yuan is spent in the development stage. According to the tax law, Company A can enjoy a 50% additional deduction policy. The following is the entry processing of Company A:
Collect R&D expenditures: Company A needs to collect R&D expenditures of 1 million yuan, including R&D personnel salaries, material costs, etc.
Capitalization or expense treatment: Company A needs to include the expenditure of 400,000 yuan in the research stage into the current profit or lossThe expenditure of 600,000 yuan in the development stage will be capitalized to form intangible assets.
Calculate the additional deduction amount: Company A's R&D expenditure is 1 million yuan, and it can enjoy the 50% additional deduction policy, that is, the additional deduction amount is 500,000 yuan (50% of 1 million yuan).
Accounting processing: Company A needs to include the additional deduction amount of 500,000 yuan in the current profit or loss. The specific operation is: debit the account of "income tax expense - additional deduction of R&D expenses" of 500,000 yuan, and credit the account of "tax payable - income tax payable" of 500,000 yuan.
Relevant Regulations. Enterprise Income Tax Law of the People's Republic of China
Accounting Standards for Business Enterprises