Preferential tax policy environment for additional deduction of R&D expenses:
I. Policy Overview.
The additional deduction of R&D expenses is an important preferential tax policy, which aims to encourage enterprises to increase R&D investment and promote scientific and technological innovation and technological progress. According to the relevant policies, the R&D expenses actually incurred by eligible enterprises in R&D activities can be deducted when calculating the taxable income, so as to reduce the tax burden of enterprises.
II. Applicable Entities.
The policy applies to businesses in most industries, but excludes some specific industries, such as tobacco manufacturing, accommodation and catering, wholesale and retail, real estate, leasing and business services, entertainment, etc. In addition, the applicable subjects of the policy also include scientific research institutions, colleges and universities, etc.
3. Preferential content.
According to the policy, if the R&D expenses actually incurred by the enterprise in R&D activities are not included in the current profit or loss as intangible assets, they can be deducted before tax according to 100% of the actual amount on the basis of deduction according to the regulations. If an intangible asset is formed, it can be amortized before tax at 200% of the cost of the intangible asset. This policy has been in place since January 1, 2023 and will be implemented as an institutional arrangement on a permanent basis.
Fourth, the policy basis.
The main basis for the policy of additional deduction of R&D expenses includes the Notice of the Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology on Improving the Policy of Pre-tax Deduction of R&D Expenses (CS 2015 No. 119) and the Announcement of the Ministry of Finance and the State Administration of Taxation on Further Improving the Policy of Pre-tax Deduction of R&D Expenses (No. 7 [2023]).
5. Policy changes and trends.
In recent years, the R&D expense deduction policy has been continuously improved and optimized, which is mainly reflected in the following aspects:
The scope of applicable subjects has been continuously expanded: from the initial state-owned and collective industrial enterprises to all enterprises, scientific research institutions, colleges and universities under various ownership systems with sound financial accounting systems and the implementation of audit and collection of enterprise income tax, the scope of applicable subjects has been continuously expanded.
Continuous simplification of R&D expense accounting and declaration: The relevant policy documents have greatly reduced the difference between the additional deduction of R&D expenses and the identification of high-tech enterprises, simplified the collection, accounting and filing management of R&D expenses in tax treatment, and further lowered the threshold for enterprises to enjoy preferential treatment.
Gradual systematization and systematization of policies: With the continuous improvement and optimization of policies, the policy of additional deduction of R&D expenses has gradually formed a systematic and systematic pattern, providing enterprises with a more stable and reliable preferential tax policy environment.
To sum up, the preferential tax policy environment of R&D expense deduction provides important support and incentives for enterprises, which is conducive to promoting scientific and technological innovation and technological progress, and promoting high-quality economic development.