 Home > Chemicals Industry > China Chemical > Pre-tax deduction for R&D expenses increased to 100%

Pre-tax deduction for R&D expenses increased to 100%

 Last Update: 2023-01-05
 Source: Internet
 Author: User

Tags

albumin high

gamma scientific

Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

【Chemical Machinery and Equipment Network Policies and Regulations】Innovation is the first driving force
to lead development.
With the rapid development of science and technology in recent years, the demand for upgrading related equipment by high-tech enterprises is more concentrated and urgent
.
In recent years, China has continuously optimized the enterprise income tax system, and the super-deduction policy for R&D expenses has been continuously increased
.
In 2021, the super-deduction rate for R&D expenses of manufacturing enterprises will be increased from 75% to 100%; Starting from October 2021, when enterprises pay enterprise income tax in advance, they can make a super-deduction for R&D expenses in the first three quarters in advance; At the beginning of 2022, the super-deduction rate of R&D expenses of technology-based SMEs will be increased to 100%, continuously releasing policy dividends and injecting new momentum
into scientific and technological innovation.

Recently, the Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology issued the "Announcement on Increasing the Support for Pre-tax Deduction for Scientific and Technological Innovation" (hereinafter referred to as the "Announcement") to support the innovation and development of high-tech enterprises and promote the upgrading of enterprise equipment and technology
.

The Announcement proposes that equipment and appliances newly purchased by high-tech enterprises between October 1, 2022 and December 31, 2022 are allowed to be deducted in a lump sum in full amount in the current year when calculating taxable income, and 100% super-deduction
is allowed before tax.
At the same time, the Announcement clarifies that all enterprises with high-tech enterprise qualifications in the fourth quarter of 2022 can apply the policy
.
If an enterprise chooses to apply the policy in the year in which the deduction is insufficient, it can be carried forward to a subsequent year in accordance with the current relevant regulations
.

This measure can not only substantially reduce the corporate income tax burden, but also stimulate the motivation of enterprises to carry out scientific and technological innovation, and lay the foundation for long-term development in the future
.

The Announcement also points out that enterprises that currently apply 75% of the pre-tax super-deduction ratio for R&D expenses will increase the pre-tax super-deduction ratio to 100% between October 1, 2022 and December 31
, 2022.
When an enterprise enjoys the R&D expense super-deduction discount in the 2022 annual enterprise income tax report, the fourth quarter R&D expense can be calculated by the enterprise at its own choice, or calculated by multiplying the actual R&D expenses incurred throughout the year by the number of operating months after October 1, 2022 to the actual number of operating months in 2022
.

Increasing the super-deduction policy for R&D expenses will continue to encourage enterprises to increase investment to enhance their innovation capabilities, stimulate their vitality to participate in market competition, thereby expanding effective investment, improving consumption space, and helping the economy consolidate and restore the foundation
.

The preferential tax policy for high-tech enterprises will help increase the dividend ability of enterprises and better establish an incentive mechanism for technical personnel and managers, mobilize the enthusiasm of all kinds of talents in enterprises, and continuously enhance the endogenous driving force
of technology and management for enterprise development.

The original text of the Announcement is as follows
.

Announcement of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Science and Technology on increasing the pre-tax deduction of support for scientific and technological innovation

Ministry of Finance, State Administration of Taxation, Ministry of Science and Technology Announcement No.
28 of 2022

In order to support the innovation and development of high-tech enterprises and promote the upgrading of enterprise equipment and technology, the following announcement is made on the pre-tax deduction policy of enterprise income tax:

1.
Equipment and appliances newly purchased by high-tech enterprises between October 1, 2022 and December 31, 2022 are allowed to be deducted in full and lump sum in the calculation of taxable income in the current year, and 100% super-deduction
is allowed before tax.

This policy
can be applied to all enterprises with high-tech enterprise qualification in the fourth quarter of 2022.
If an enterprise chooses to apply the policy in the year in which the deduction is insufficient, it can be carried forward to a subsequent year in accordance with the current relevant regulations
.

The above-mentioned equipment and appliances refer to fixed assets other than houses and buildings; The so-called conditions and management measures for high-tech enterprises shall be implemented
in accordance with the Notice of the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation on Revising and Issuing the > Measures for the Identification and Administration of < High-tech Enterprises (Guoke Fa Huo [2016] No.
32).

The tax collection and administration matters for enterprises enjoying this policy shall be implemented
in accordance with the current collection and administration regulations.

2.
Enterprises that currently apply 75% of the pre-tax super-deduction ratio for R&D expenses will increase the pre-tax super-deduction ratio to 100%
from October 1, 2022 to December 31, 2022.

When an enterprise enjoys the R&D expense super-deduction discount in the 2022 annual enterprise income tax report, the fourth quarter R&D expense can be calculated by the enterprise at its own choice, or calculated by multiplying the actual R&D expenses incurred throughout the year by the number of operating months after October 1, 2022 to the actual number of operating months in 2022
.

The relevant policies and management of the pre-tax super-deduction policy for R&D expenses enjoyed by enterprises shall be implemented
in accordance with the relevant provisions of the Notice of the Ministry of Finance and the State Administration of Taxation and the Ministry of Science and Technology on Improving the Pre-tax Super Deduction Policy for R&D Expenses (Cai Shui [2015] No.
119) and the Notice of the Ministry of Science and Technology of the State Administration of Taxation of the Ministry of Finance on Policy Issues Related to the Pre-tax Super Deduction of Overseas R&D Expenses Entrusted by Enterprises (Cai Shui [2018] No.
64) and other documents.

This is hereby announced
.

Ministry of Finance, State Administration of Taxation, Ministry of Science and Technology

September 22, 2022

This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.