1. What kind of audit report can be used for the identification of high-tech enterprises?
The special audit report or assurance report shall be issued by an intermediary institution that meets the following conditions: Enterprises can choose their own intermediaries that meet the following conditions. Intermediary conditions:
1) Have independent practice qualifications, established for more than three years, and have no bad records in the past three years.
2) The number of certified public accountants or tax agents in the year of undertaking the certification shall not be less than 30% of the annual average monthly number of employees, and the average monthly number of employees shall be more than 20.
3) Relevant personnel should have good professional ethics, understand the national science and technology, economic and industrial policies, and be familiar with the relevant requirements of high-tech enterprise identification.
2. What audit reports need to be provided for the identification of high-tech enterprises?
It is necessary to provide the financial accounting report of the enterprise for the past three fiscal years (including accounting statements (balance sheet, income statement, cash flow statement), notes to accounting statements and financial fact sheet), special audit or assurance report on the research and development expenses of the enterprise in the past three fiscal years and the income of high-tech products (services) in the past three fiscal years, and attach explanatory materials for research and development activities.
3. What is Total Revenue?
Gross income is defined as gross income minus non-taxable income.
Total income = main business income + other business income + non-operating income + interest income + investment income + subsidy income.
4. What is sales revenue?
Sales revenue is the sum of main business income and other business income. The main business income and other business income are calculated according to the annual tax return of enterprise income tax.
5. How to calculate the growth rate of net assets of enterprises?
Net Asset Growth Rate 1 2 (Net Assets at the End of the Second Year Net Assets at the End of the First Year Net Assets at the End of the Third Year Net Assets at the End of the Second Year) 1
Net Assets = Total Assets Total Liabilities.
6. How to calculate the growth rate of enterprise sales revenue?
Sales revenue growth rate 1 2 (2nd year sales revenue 1st year sales revenue 3rd year sales revenue 2nd year sales revenue) 1
7. How to deal with the accounting treatment of R&D expenses identified by high-tech enterprises?
Set up R&D expenditure accounts: set up 2-level accounts by project and 3-level accounts according to expense categories; At the end of the month, the second-level account of R&D expenses is set up under the expense of administrative expenses, and the intangible assets of the first-level account are capitalized.
Accounting treatment of personnel labor costs: R&D expenditure - xxx item - personnel labor cost;
Accounting treatment of direct input costs: R&D expenditure - xxx items - material costs (fuel and power costs, test costs, maintenance costs);
Accounting treatment of depreciation expense and long-term amortization expense: R&D expenditure - xxx item - depreciation expense.
Accounting treatment of intangible asset amortization expense: R&D expenditure - xxx item - intangible asset amortization expense.
Accounting treatment of design expenses: R&D expenditure - xxx project - design expense.
Accounting treatment of equipment commissioning expenses and test costs: R&D expenditure - xxx item - equipment commissioning and test expenses.
Accounting treatment of outsourced R&D expenses: R&D expenses - xxx items - outsourced R&D expenses.
Accounting treatment of other expenses: R&D expenditure - xxx item - other expenses.
At the end of the period, R&D expenditures that meet the conditions for capitalization are included in the development expenses of intangible assets, and R&D expenditures that do not meet the conditions for capitalization are carried forward and included in administrative expenses.
8. What kind of preferential tax rates can be enjoyed by high-tech enterprise income tax?
According to the second paragraph of Article 28 of the Enterprise Income Tax Law of the People's Republic of China, high-tech enterprises that need to be supported by the state shall be subject to enterprise income tax at a reduced rate of 15%.
According to Article 1 of the Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Applicable Tax Rates and Tax Credits for Overseas Income of High-tech Enterprises (CS 2011 No. 47), high-tech enterprises that have applied for and been recognized based on the total R&D expenses, total income, total sales revenue, and high-tech product (service) income related to all domestic and overseas production and business activities can enjoy the preferential income tax policy for high-tech enterprises on their overseas income. Overseas income can be subject to enterprise income tax at a preferential rate of 15%, and the total amount of tax payable at home and abroad can be calculated at a preferential tax rate of 15% when calculating the foreign credit limit.
9. How long is the loss carry-forward period of high-tech enterprises?
According to Article 1 of the Notice of the Ministry of Finance and the State Administration of Taxation on Extending the Loss Carry-forward Period for High-tech Enterprises and Technology-based Small and Medium-sized Enterprises (CS 2018 No. 76), starting from January 1, 2018, enterprises with the qualification of high-tech enterprises or technology-based small and medium-sized enterprises (hereinafter referred to as the qualifications) in the current year shall be allowed to carry forward the losses incurred in the five years before the qualification year to make up for the losses incurred in the following years, and the maximum carry-forward period will be extended from 5 years to 10 years.