Three departments: increase support for pre-tax deductions for 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 Intensity of Pre-tax Deductions for Supporting Scientific and Technological Innovation", in order to support the innovation and development of high-tech enterprises and promote the renewal of enterprise equipment and technological upgrading, the newly purchased equipment and appliances of high-tech enterprises from October 1, 2022 to December 31, 2022 are allowed to be deducted in full amount in the calculation of taxable income in the current year, and 100% additional deduction
is allowed before tax.

According to the announcement, all enterprises with high-tech enterprise qualifications in the fourth quarter of 2022 can apply the policy
.
Where an enterprise chooses to apply the policy to insufficient deductions in the current year, it may carry forward it to the following year and implement
it in accordance with the current relevant provisions.

The announcement also clarifies that enterprises that currently apply 75% of the pre-tax deduction ratio of R&D expenses will increase the pre-tax deduction ratio to 100%
between October 1, 2022 and December 31, 2022.

When an enterprise enjoys the preferential deduction of R&D expenses in the calculation of the settlement and payment of enterprise income tax in 2022, the R&D expenses in the fourth quarter can be calculated by the actual number of occurrences of the enterprise itself, or according to the actual R&D expenses incurred throughout the year multiplied by the number of operating months after October 1, 2022 to the actual number of operating months in 2022
.

In addition, the State Administration of Taxation has also issued the "Operation Guide for the One-time Pre-tax Deduction and 100% Additional Deduction Policy for Enterprises Purchasing Equipment and Appliances for High-tech Enterprises" and the "Policy Operation Guide for Increasing the Deduction Ratio of R&D Expenses of Other Enterprises to 100%"
.