Journalism

R & D fee plus deduction ratio increased!Pay attention to these confusing problems!Otherwise

2021-03-24

In this year's NPC and CPPCC sessions, Premier Li Keqiang announced that the proportion of additional deduction of 75% for R & D expenses will remain unchanged, and the proportion of additional deduction for R & D expenses of manufacturing enterprises will be increased to 100%.


For a while, R & D costs have become a hot topic for many financial personnel.In this issue, the finance and Taxation Bureau sorted out three major problems about the confusion of R & D expenses


one

Scope of R & D expenses


As for the scope of R & D expenses, the requirements are different under different policy caliber.At present, the scope of R & D expenses is mainly as follows:


01  R & D expenses recorded on a daily basis


The financial department of an enterprise should refer to the opinions of the Ministry of Finance on strengthening the financial management of R & D expenses (CQ [2007] No. 194) when accounting for R & D expenses.


02  R & D expenses recognized by hi tech


Any company, when applying for high-tech enterprises and enjoying tax incentives for high-tech enterprises, must meet this key indicator (and other indicators need to be met at the same time)

In the past three years, the proportion of total R & D expenses in the total sales revenue of the past three years should meet the standard.The scope of R & D expenses here is clearly stipulated in the guidelines for the management of identification of high tech enterprises (gkfh [2016] No. 195).


03  Additional deduction of R & D expenses


Eligible enterprises (not included in the list of negative industries) can enjoy an additional deduction (75%) for R & D expenses incurred in carrying out qualified R & D activities (not belonging to the negative list of R & D activities).

There are many documents involved in the scope of R & D expenses. Enterprises need to refer to the notice of the Ministry of finance, the State Administration of Taxation, and the Ministry of science and technology on improving the pre Tax Deduction Policy for R & D expenses (CS [2015] No. 119)

Announcement of the State Administration of Taxation on issues related to the pre Tax Deduction Policy for R & D expenses of enterprises

(announcement of the State Administration of Taxation, No. 97, 2015), notice of the State Administration of Taxation on issues related to the scope of pre tax deduction and deduction of R & D expenses (Announcement No. 40 of 2017 of the State Administration of Taxation)

Notice of the Ministry of finance, the State Administration of Taxation, the Ministry of science and technology on relevant policy issues concerning pre tax deduction of overseas R & D expenses entrusted by enterprises (CS [2018] No. 64) and

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 (CS [2018] No. 99).


04  Research and development expenses of project funds


After enterprises carry out research and development and apply for national research and development funds (Research and development funds allocated by the state), the specific use scope of project funds should refer to the management measures for funds of national key R & D programs

(CJJ [2016] No. 113) and supporting implementation rules of the measures for fund management of national key R & D programs (gkfz [2017] No. 261).


Key points: At present, the hot topic of research and development expenses plus deduction, It only refers to the R & D expenses that meet the standard of plus deduction, not all the R & D investment of the enterprise.


two

Collection of R & D expenses


If R & D of an enterprise is completely independent, it is usually not a problem to collect expenditures related to R & D activities.

The problem is that most enterprises' R & D is closely related to production and operation, and a considerable number of enterprises' R & D occurs in the production process.


Case 1: Company A has undertaken a large-scale project. In the process of project implementation, there will be various technical problems to be solved, and the personnel involved in the technical research are the personnel of the project implementation.

In this case, how to collect the labor costs related to R & D?


Case 2: an individual senior manager of enterprise B is in charge of both R & D and non R & D work. How can the labor cost of the senior manager be collected in the R & D expenses?


In accordance with the provisions of the announcement of the State Administration of Taxation on issues related to the pre Tax Deduction Policy of enterprise research and development expenses (Announcement No. 97 of 2015 of the State Administration of Taxation),

Personnel engaged in R & D activities are engaged in non R & D activities at the same time, It is necessary to record the personnel activities, and allocate the actual related expenses between the R & D expenses and the production and operation expenses according to the proportion of the actual working hours,

No additional deduction shall be made for those not allocated.

For the above problems, in practice, the proportion of actual working hours is widely used to allocate the expenditures belonging to R & D projects.

How to count how much time the above personnel spend on R & D and how much time they spend on non R & D each month has become a major obstacle in front of many enterprises.

When examining the R & D expenses of state-owned enterprises in 2020, SASAC also emphasized this issue, requiring all enterprises to do a good job in basic management related to R & D.


three

Special provisions for R & D consumables


The materials consumed in the R & D process of an enterprise may have the following possible directions:


It is completely consumed in the R & D process.

After the R & D, the samples are kept in the company.

In the process of R & D, scraps, defective products and intermediate trial products are formed.

After R & D, the product is directly formed or formed as a component.


In the first and second cases, the materials consumed by enterprise R & D can be deducted normally.


In the third case, If an enterprise sells leftovers, defective products and intermediate trial products formed in the process of R & D to the outside world, it shall comply with the announcement of the State Administration of Taxation on the issues concerning the scope of pre tax deduction of R & D expenses

(Announcement No. 40, 2017 of the State Administration of Taxation) stipulates that the sales revenue needs to offset the R & D expenses of the current year. If there is still a balance after the write off, the R & D expenses can be deducted in the current year and calculated as 0

(Note: there is no need to make any deduction in accounting, the same below), and the balance will not be carried forward to subsequent years.


For example, in 2020, the enterprise's R & D expenses that meet the conditions of additional deduction are 800000 yuan, and the income of sales situation 3 in that year is 900000 yuan (excluding VAT).

In 2020, the enterprise can deduct 0 R & D expenses, and the balance of RMB 100000 (90-80) will not be carried forward to the following years.


In the fourth case, If the enterprise sells the products directly formed after R & D or formed as components, it shall comply with the announcement of the State Administration of Taxation on the collection scope of pre tax deduction of R & D expenses

(State Administration of Taxation Announcement No. 40, 2017), The material cost included in the product originally included in the R & D expenses shall not be deducted, but shall be directly deducted from the R & D expenses of the year in which the product is sold,

If the deduction is insufficient, it shall be carried forward to the following years indefinitely.


For example, in 2020, the enterprise's R & D expenses that meet the conditions of additional deduction are 800000 yuan, and the amount of material expenses included in the current year's sales situation 4 is 900000 yuan.

Then in 2020, the enterprise can deduct 0 additional R & D expenses, and the balance of RMB 100000 (90-80) will be carried forward to the following years to continue to offset the R & D expenses


Advantages of Huacai

Industry leader
The first financial and taxation service agency landing on the new third board and the first fiscal and taxation platform providing online services
Qualification certification
It has the agency license issued by the Finance Bureau, the national high-tech enterprises, and the 5A level certification of the accounting agency of the general association of China
23 years of industry experience
300 + professional service staff, 20000 + customer service experience
ISO certification information security
Through the international ISO27001 information security management system standard certification
ISO certification standard management
Through the international ISO9001 quality management system certification
Service capability
The scope of service covers hot cities and hot areas