In this article, Guandian Defense Technology Co., Ltd. was transferred to the board and inquired and replied to the IPO project of the Science and Technology Innovation Board.
Quantitatively list the amount and reasons for the difference between R&D investment and the application for additional deduction of R&D expenses, explain whether the act of declaring additional deduction for R&D projects capitalized in the year of completion violates the Enterprise Income Tax Law and its relevant regulations, and the reasons why the tax differences caused by the aforementioned behaviors do not recognize deferred income tax liabilities
1. Quantitatively list the amount and reasons for the difference between R&D investment and the application for additional deduction of R&D expenses.
1) The difference between the company's actual R&D investment from 2018 to 2020 and the amount of additional deduction of R&D expenses applied for is listed as follows:
The company has not carried out the final settlement of income tax from January to June 2021, so there is no data on the additional deduction of R&D expenses for this period.
2) The reasons for the difference between the company's actual R&D investment from 2018 to 2020 and the amount of additional deduction of R&D expenses are listed as follows:
The first type of reason: the R&D investment of the transfer company refers to the project cost investment in the research stage and the project cost investment in the development stage recorded in its books, and the amount of R&D expenses applied for additional deduction at the end of each period refers to the R&D expenses that have not formed intangible assets in the current profit or loss in accordance with the provisions of the Notice on Improving the Pre-tax Deduction Policy for R&D Expenses (CS 2015 No. 119)), and the R&D expenses that have not formed intangible assets will be deducted by 75% on the basis of actual deduction;R&D expenditures that will form intangible assets are amortized at 175% of the cost of intangible assets. From 2018 to 2020, the amount of R&D investment incurred by the company for capitalized projects was 0000,000,000,000,597990,000 yuan, 887250,000 yuan, which is not included in the application for the preferential policy of additional deduction of R&D expenses, and the corresponding project cost investment details are as follows:
The second type of reason: according to the provisions of the Notice on Improving the Policy of Pre-tax Deduction of R&D Expenses (CS 2015 No. 119) issued by the Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology, firstly, the expenses incurred by the company in entrusting external institutions or individuals to carry out R&D activities shall be included in the R&D expenses of the entrusting party according to 80% of the actual amount of expenses incurred and the additional deduction will be calculated, and the company's non-deductible outsourced R&D expenses in 2019 and 2020 will be 111 respectively380,000 yuan, 19640,000 yuan. Secondly, other expenses not directly related to R&D activities shall not be deducted, and the total amount of other expenses shall not exceed 10% of the total amount of R&D expenses that can be deducted, and the amount of other expenses that the company cannot apply for R&D additional deduction in 2018 is 0580,000 yuan;Finally, the amortization amount of intangible assets formed in the current year after the capitalization of R&D projects in previous years shall not be used as the amount for calculating the R&D additional deduction for the current year, and shall not be deducted repeatedly, and the amortization expense amount that the company cannot apply for R&D additional deduction in 2018 is 12750,000 yuan;
The third type of reason: according to the announcement of the State Administration of Taxation on the issuance of the revised "Measures for the Handling of Preferential Policies for Enterprise Income Tax" (Announcement No. 23 of 2018 of the State Administration of Taxation), the technical contracts that have not applied for recognition and registration and have not been registered shall not enjoy the preferential policies of the state in terms of taxation, credit and incentives for promoting the transformation of scientific and technological achievements, and the company's non-deductible technical service expenses in 2018 and 2020 are 34 respectively170,000 yuan, 278$550,000.
2. Explain whether the act of declaring additional deductions for capitalized R&D projects in the year of completion violates the Enterprise Income Tax Law and its relevant provisions.
The actual amount of R&D project investment incurred by the transfer company from 2018 to 2020 includes the project cost investment in the research stage and the project cost investment in the development stage in the corresponding year. When the company applies for the preferential policy of additional deduction of R&D expenses in the final settlement of enterprise income tax at the end of each year, the project expenses in the research stage of each year will be deducted by 75% on the basis of actual deduction in accordance with the relevant provisions of the enterprise income tax law, and the R&D projects that form intangible assets in the current year and previous years will be deducted according to 75% of the cost of intangible assets. The difference between the company's actual R&D investment from 2018 to 2020 and the amount of the preferential policy for additional deduction of R&D expenses is listed as follows:
The difference between the amount of R&D investment and the amount of additional deduction of R&D expenses described in the application materials of the transfer company is 47500,000 yuan, 709370,000 yuan and 673The amount of 570,000 yuan applied for additional deduction of R&D expenses refers to the audit and verification of the expenses incurred by the capitalization and expense projects of the additional deduction policy for R&D expenses in each year, and the authenticity and accuracy of the R&D projects and their expenses incurred by the transfer company in accordance with the relevant provisions of the current tax regulations, financial and accounting regulations, so as to provide the audit basis and opinions for the projects and amounts of the R&D expenses applied for by the transfer company The "amount of additional deduction of R&D expenses" described in the recommendation report includes the amount of the company's capitalized project expenses in each year, but it is not the amount of R&D expenses deducted by the transfer company's income tax.
To sum up, the transfer company does not declare the capitalized R&D project for additional deduction in the year of completion, and there is no situation that does not comply with the enterprise income tax law and its relevant regulations.
3. The reason why the deferred income tax liability is not recognized for the tax differences caused by the above-mentioned acts.
**Article 95 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China stipulates that if the research and development expenses incurred by an enterprise for the development of new technologies, new products and new processes are not included in the current profit or loss as intangible assets, 75% of the research and development expenses shall be deducted according to the actual deduction in accordance with the regulations. The additional deduction of R&D expenses only reduces the taxable income of the company's income tax return for the current year, which is a permanent difference, and the difference will not be deferred to subsequent fiscal years, and is not a temporary difference, so the deferred income tax liability is not recognized.
At the same time, the transfer company does not declare additional deductions for capitalized R&D projects in the year of completion, and there is no taxable temporary difference due to the fact that the book value of assets is greater than the tax base, so the deferred income tax liability is not recognized.