16 mistakes in R & D cost plus deduction

Myth 1: only high-tech enterprises can enjoy the tax preference of enterprise income tax R & D expenses plus deduction.

Correct explanation: according to the provisions of item 1, Article 5 of the notice of the Ministry of Finance and the State Administration of Taxation on improving the pre tax plus and Deduction Policy of research and development expenses (CS [2015] No. 119), this notice is applicable to resident enterprises with sound accounting, collection of audit accounts and accurate collection of research and development expenses.

Therefore, no matter high-tech enterprises or other enterprises, as long as the resident enterprises subject to audit and collection comply with the other restrictive provisions of CS [2015] No. 119 on pre tax deduction of R & D fees, they can enjoy the tax preference of R & D fees plus deduction.

Error 2: small and micro enterprises can not enjoy the preferential policy of additional deduction of research and development fees at the same time.

Positive explanation: according to the notice of the Ministry of Finance and the State Administration of Taxation on improving the pre tax plus and Deduction Policy of research and development expenses (CS [2015] No. 119), the measures are applicable to resident enterprises with sound financial accounting and accurate collection of research and development expenses. In addition, Article 2 of the Circular of the Ministry of Finance and the State Administration of Taxation on Several Issues concerning the implementation of preferential policies for enterprise income tax (CS [2009] No. 69) stipulates that all preferential tax policies stipulated in the enterprise income tax law and its implementing regulations can be enjoyed at the same time if the enterprises meet the prescribed conditions.

Therefore, all the tax preferences stipulated in the enterprise income tax law and its implementing regulations can be enjoyed at the same time if the enterprise meets the prescribed conditions. Even if the enterprise has enjoyed the preferential policy of reducing the taxable income of small low profit enterprises by half and collecting or half collecting at the 20% tax rate, it can also enjoy the preferential policy of research and development fee plus tax deduction.

In the same way, high-tech enterprises can also enjoy two preferential policies: 15% corporate income tax rate and R & D expenses plus deduction.

Error 3: loss making enterprises cannot enjoy the preferential policy of additional deduction of research and development fees.

Correct explanation: according to Article 8 of the notice of the State Administration of Taxation on the connection of several tax matters of enterprise income tax (GSH [2009] No. 98), the loss caused by the additional deduction of technology development fee shall be handled. The part of the enterprise's technology development fee plus deduction has formed the annual loss of the enterprise, which can be made up with the income of the subsequent years, but the maximum carry over period shall not exceed 5 years.

Therefore, the R & D expenses incurred by the enterprise can be added and deducted no matter whether it is profit or loss in the current year.

Error 4: enterprises engaged in R & D activities but did not form results, R & D expenses can not enjoy the preferential policy of additional deduction.

Correct explanation: according to the notice of the Ministry of Finance and the State Administration of Taxation on improving the pre Tax Deduction Policy of research and development expenses (CS [2015] No. 119), the R & D activities mentioned in this notice refer to the continuous and clear objectives of enterprises to obtain new scientific and technological knowledge, creatively use new scientific and technological knowledge, or substantially improve technology, products (services) and processes Systematic activities. If the R & D expenses actually incurred in the R & D activities of the enterprise are not included in the current profit and loss, they shall be deducted from the taxable income of the current year according to 50% of the actual amount incurred in the current year on the basis of deduction according to the provisions; if the intangible assets are formed, they shall be amortized before tax according to 150% of the cost of the intangible assets.

Therefore, enterprises engaged in R & D activities can enjoy the preferential policy of additional deduction no matter whether research results are formed or not.

Myth 5: the disabled in the R & D personnel cannot enjoy 150% of the R & D expenses plus deduction and 100% of the actual wages paid by the disabled at the same time.

Correct explanation: according to Item 1, Article 1 of the notice of the Ministry of Finance and the State Administration of Taxation on Several Issues concerning the implementation of preferential policies for enterprise income tax (CS [2009] No. 69), if the R & D expenses actually incurred in the R & D activities of the enterprise are not included in the current profits and losses, 50% of the actual amount incurred in the current year shall be deducted based on the actual amount according to the provisions, and the amount shall be calculated from the current year The amount of taxable income shall be deducted; if intangible assets are formed, they shall be amortized before tax according to 150% of the cost of intangible assets. The specific scope of R & D expenses includes: 1. Labor cost. Wages and salaries, basic endowment insurance, basic medical insurance, unemployment insurance, work-related injury insurance, maternity insurance and housing fund of personnel directly engaged in R & D activities, as well as labor costs of external R & D personnel.

At the same time, the first article of the notice of the State Administration of Taxation on the preferential policies of enterprise income tax on the employment of the disabled (CS [2009] No. 70) clearly points out that if the enterprise resets the employment of the disabled, on the basis of the actual deduction of the wages paid to the disabled, it can be calculated and deducted according to 100% of the wages paid to the disabled when calculating the taxable income 。

In addition, Article 2 of the Circular of the Ministry of Finance and the State Administration of Taxation on Several Issues concerning the implementation of preferential policies for enterprise income tax (CS [2009] No. 69) stipulates that all tax preferences stipulated in the enterprise income tax law and its implementing regulations can be enjoyed at the same time if the enterprises meet the prescribed conditions.

It can be concluded that the salary expenses of the disabled in the R & D personnel can also enjoy 150% of the R & D expenses plus deduction and 100% of the salary paid to the disabled on the basis of the actual deduction.

Mistake 6: the samples purchased by enterprises for R & D cannot be used as R & D expenses to enjoy additional deduction.

Positive solution