R & D Fee Deduction: Enterprises Need To Grasp The Basic Points.

Through sorting out the basic judgment and operation points of several key points of R & D fee deduction policy, the paper gives examples to remind enterprises to make full use of and standardize the use of preferential tax policies.

First, whether it belongs to the basic judgement that can enjoy the object.

As an enterprise, we must first find out whether or not we belong to the R & D plus fee deductible object.

If it is clearly an object that can not be enjoyed, there is no need to do anything complicated and useless.

According to the notice,

The deduction policy is applicable to the residents with sound accounting practices, the implementation of audit collection, and the accurate collection of R & D expenses. Meanwhile, the industry is limited.

Therefore, enterprises first have to judge whether their type of business meets the requirements.

1, the judgement of resident enterprises

First of all, we need to clearly determine whether it belongs to a resident enterprise, and if it is not a resident enterprise, we can not enjoy the deduction of R & D fee.

According to the enterprise income tax law (No. sixty-third of the president of the People's Republic of China), resident enterprises refer to enterprises established within the territory of China according to law, or established in accordance with foreign (regional) laws, but actually managed by institutions in China.

The actual management organization refers to the entity that implements substantive and comprehensive management and control over the production, operation, personnel, accounting and property of an enterprise.

2. Judgment of the industry

Under the new deal, the six industries do not apply the pre tax plus Deduction Policy: tobacco manufacturing; accommodation and catering; wholesale and retail; real estate; leasing and business services; entertainment.

Industry judgment is based on the classification and code of national economy (GB/4754-2011).

The six industry enterprises refer to the enterprises whose main business is to list industry business. The main business income of their R & D expenses in that year accounted for 50% of the total income of the enterprises without tax income and investment income, which accounted for the total income calculated by the sixth provisions of the tax law.

The total income stipulated in the sixth section of the income tax law refers to the income earned by enterprises from various sources in the form of money and non currency, including sales of goods income, provision of labor income, pfer of property income, dividends, dividends and other equity investment income; interest income; rental income; royalty income; income from donations; other income.

Non taxable income includes: financial appropriation, administrative and public funds collected by law and financial management, and other non taxable income stipulated by the State Council.

Example 1: a cigarette factory in 2016, the main cigarette business achieved sales revenue of 150 million yuan, and also engaged in production of hardware products sales revenue of 50 million yuan, and achieved an investment income of 10 million yuan.

The cost of hardware research and development for the whole year is 5 million yuan.

The main income of the cigarette factory is 15000 (15000+5000) x 100%=75%, and it is not allowed to deduct the preferential policy of R & D fee and addition.

3. Enterprise

Judgement

Only an enterprise with sound accounting can enjoy it according to the prescribed conditions, and further make it clear that it must be an enterprise that implements audit collection. Enterprises that approve the collection of enterprise income tax by way of levy can not enjoy this preferential policy.

Therefore, for enterprises that have approved the enterprise income tax, if they want to enjoy preferential policies, they must establish and improve the accounting system, and the enterprise income tax shall be subject to audit collection.

Two. Standards for R & D activities and cost collection.

1. Restriction and judgement of R & D activities

R & D activities refer to the systematic activities that enterprises continue to carry out with clear objectives in order to acquire new knowledge of science and technology, creatively utilize new knowledge of science and technology, or substantially improve technology, products and services.

The notice carries out negative list management for R & D activities. It is clear that the seven activities are not applicable to pre Tax Deduction Policy: routine upgrading of enterprise products (services); direct application of a scientific research achievement, such as the direct adoption of new public technology, materials, devices, products, services or knowledge; the technical support activities provided by enterprises after commercialization; repeated or simple changes to existing products, services, technologies, materials or processes; market research, efficiency investigation or management research; as industrial (service) process links or routine quality control, test analysis, maintenance and maintenance; Social Sciences, arts or humanities studies.

Some of these seven restrictive R & D activities are relatively clear, but some are relatively vague, and it is easy to argue with the tax authorities. This requires enterprises to do a good job in proving that the R & D projects can not be listed in the negative list.

Such proof needs to be planned from the beginning of the project, and must be supplemented by evidence after all.

Otherwise, the original material of evidence is easy to lose. Two, it is easy to cause incomplete evidence chain after the supplementary evidence, and it is difficult to form effective proof.

Therefore, for enterprises to decide their own R & D activities, they should:

(1) set up R & D department.

It is necessary to have a clear R & D institution (not only set up) and staffing, and formulate the relevant management system for R & D.

Without R & D department, it is easy to give people the feeling that there is no R & D capability.

(2) annual research and development plan.

It is best to propose specific research projects or directions.

(3) application for approval.

We should pay attention to the name of the project and keep away from the negative list according to the facts.

For example, it is easy to be judged as a negative list item, such as "technical pformation of * * assembly line" and "increasing R & D intensity of * products".

It is necessary to clarify the list of R & D professionals, especially the part time staff.

(4) approval of approval.

Through the general manager's office or board of directors, the resolution document or meeting minutes of the feasibility study report of the R & D project and the approval of the project are approved.

(5) reporting materials for R & D results.

A successful report on R & D results or a conclusion of R & D failure and explanatory materials or minutes for the termination of R & D.

Related expenses incurred by enterprises in creative design activities for innovative, creative and disruptive products can also be deducted before tax.

Most of the creative design activities have the particularity of non physical form, and more relevant materials are needed to prove its authenticity.

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2, the standardization of R & D expenses should be standardized.

Enterprises should carry out accounting treatment for R & D expenditure according to the requirements of the state financial accounting system, and set up subsidiary accounts according to R & D projects, and separately collect R & D expenses that can be deducted.

Accounting for R & D expenses and production and operation expenses separately and accurately and reasonably.

The proclamation has independently developed R & D expenditure supplementary accounts; commissioned R & D expenditures; auxiliary R & D expenditure; cooperative R & D expenditure; subsidiary R & D expenditure; R & D expenditures; supplementary accounts; R & D projects can be deducted from research and development expenses; the table of collection is equivalent to norms; enterprises should set up according to their styles to avoid unnecessary troubles.

If the enterprise fails to set up and record auxiliary accounts in accordance with the regulations, it will not enjoy tax deductions added.

For example, in 2:2014, a technology company set up and launched 22 R & D activities, and the R & D cost was about 9000000 yuan. However, in the financial process, the enterprise only indicated that R & D activities used materials in the material Zero section, followed by no accounting and no accounting, so the tax authorities were totally eliminated in the tax assessment.

At that time, there was no establishment of special accounts and no accurate collection of R & D expenses.

If the same happens in 2016, the enterprise will not enjoy the R & D fee deduction because it does not set up an auxiliary account.

1. Declaration, filing and reference.

(1) accurately grasp the time limit for enjoying the declaration.

According to the procedures for handling enterprise income tax preferential policies (Annex three of the State Administration of Taxation Announcement No. seventy-sixth), annex three, the list of preferential items for archival filing of tax collection enterprises branches stipulates that the deduction of R & D fee can only be enjoyed at the time of remittance, and shall not be enjoyed at the time when the intermediate income tax is paid in advance.

If the enterprise meets the prescribed R & D expenses and deducts the conditions, it will be able to enjoy and fulfill the filing procedures after January 1, 2016. The longest period is 3 years.

For example, in May 3:2017, the new finance director of A found that a R & D project in 2015 was in line with R & D fee deductions, but it did not declare enjoyment.

In June 2018, B financial officers found that a R & D project in 2016 met the requirements of R & D fee deduction, but did not declare enjoyment.

In March 2020, C financial officers found that a R & D project in 2016 met the requirements of R & D fee deduction, but did not declare enjoyment.

Can the three companies enjoy retroactive enjoyment? A's undeclared activities took place before January 1, 2016.

B's undeclared activities can be traced back to enjoy and fulfill the filing procedures.

C's undeclared activities will not be traced until the date of the retrospective.

(2) accurately fulfill the filing procedures.

R & D expenses are deducted and implemented for record management.

The enterprise shall, when it is no later than the annual settlement of tax returns, submit the archival filing materials such as the enterprise income tax preference record form and the R & D project documents to the tax authorities for completion of the filing procedures according to the notice issued by the notice, the circular and the announcement of the State Administration of Taxation on the handling of the preferential measures for enterprise income tax (the Announcement No. seventy-sixth of the State Administration of Taxation 2015).

Enterprises have already enjoyed the preferential tax policies on their own, but if they fail to file the records in accordance with the regulations, they should complete the filing procedures in time, and submit relevant retention and reference materials.

After finding the tax authorities, the enterprises shall be ordered to file the documents within a specified period of time, and relevant retention and reference materials shall be submitted.

In case of overdue filing procedures and audited conditions, those who fail to file a record in time shall be punished according to the relevant provisions of the tax collection and administration law.

For example, in July 4:2017, the tax authorities found that in the subsequent audit of enterprise income tax, a company declared its own R & D expenses by 1 million yuan in 2016, and added a deduction of 500 thousand yuan, but failed to fulfill the filing procedures.

The tax authorities ordered the company to reissue the relevant formalities, and the audits met the requirements of the R & D fee and deducted the conditions, so that no adjustment was made for the deductions made by the company. However, according to the sixty-second provision of the tax collection and administration law of the People's Republic of China, a company was fined 1000 yuan.

(3) accurately keep good reference materials.

While declaring to enjoy preferential policies, enterprises will complete the collection of the eight types of data and keep them for future reference.

The reference materials are the important basis for enterprises to prove that they are in line with the preferential conditions and standards stipulated in the tax law. Enterprises must be kept in good order so as not to be disqualified from the tax authorities when they are unable to provide reference materials for verification.

Since the retention period of the reference materials is 10 years after enjoying the preferential items, it is recommended that the enterprises carry out archival management of the reference materials, prevent the loss of accounting movements and cause unnecessary losses.

2, accurately define R & D personnel.

R & D personnel are divided into three categories: researchers, technicians and auxiliary personnel.

The hiring form of research and development personnel can be either the employees of the enterprise, or the external employment (including labor dispatch).

The research and development personnel, technical personnel and auxiliary personnel (excluding logistics services for R & D activities) are included in the R & D personnel contracted with the enterprise.

Enterprises must pay attention to: (1) R & D personnel must be directly engaged in R & D activities.

Its embodiment is that R & D project cost is paid by R & D personnel, otherwise it is difficult to say that it is directly engaged.

(2) no administrative personnel, financial personnel and logistics personnel who are not directly involved in R & D should not be included in the R & D fee deduction scope, otherwise they will easily be alerted.

In case of 5:2014 annual income tax settlement, B company declared the R & D expenses of 1 million 580 thousand yuan, plus a deduction of 790 thousand yuan.

In August 2015, the tax personnel carried out tax assessment on the company B, and found that there were financial managers (senior accountants titles), host Accountants (Intermediate accountants titles), and automobile drivers (with senior technical certificates) in the R & D personnel list and R & D expenses. Then, the authenticity of the whole R & D project was suspected. After detailed verification, it was proved that it was only a regular pipeline pformation, and the adjustment of the 790 thousand yuan deducted from the declaration was made, and the enterprise income tax was paid 197 thousand and 500 yuan, and the punishment was made according to the regulations.

3, accelerated depreciation can enjoy additional deduction.

The instruments and equipment used for R & D activities meet the requirements for accelerated depreciation, and the preferential treatment policies can be enjoyed in the accelerated depreciation part according to the accounting treatment in accelerated depreciation and no more than the amount calculated according to the tax law.

Therefore, accelerated depreciation is cost-effective for equipment used in R & D activities, and the enterprise income tax can be substantially reduced.

Example 6: a biopharmaceutical company purchased a tester in February 2016, which is specially used for testing in R & D activities. The unit price is 100 thousand yuan, which meets the accelerated depreciation condition and is handled by the one-time entry cost accounting.

When the enterprise income tax is declared, this tester is disposable tax deduction.

Assuming that all other conditions meet the requirements, the tester can enjoy an additional deduction of 50 thousand yuan.

4. Correct division of mixed charges.

Personnel engaged in R & D activities, instruments, equipment and intangible assets used for R & D activities shall be engaged in or used for non R & D activities, shall make necessary records of their personnel activities and the use of instruments and equipment and intangible assets, and allocate reasonable expenses for their actual expenses in accordance with the actual working hours.

In practice, the enterprise must have more detailed original records to prove the authenticity and reasonableness of the distribution of the mixed expenses, and keep the cost allocation instructions (including the record of work usage) for reference.

Therefore, enterprises need to set up corresponding employment and time recording system, and financial needs to supervise and master the research and development process, especially for the mixed use cost, such as personnel attendance record, equipment research and development activity time record and so on.

Example 7: an enterprise started research and development of a project in February 2016 (assuming compliance with the deductible conditions), and the deputy general manager in charge of production technology participated in the project research and development.

In March, the deputy general manager had 20 days' direct participation in R & D activities in the project department, and 10 days in the production department for daily management (attendance record).

In that month, the deputy general manager's salary and salary was 9000 yuan, which was allocated according to the number of working days in finance, and 6000 yuan was included in the research and development expenses, and the 3000 yuan was included in the production and operation expenses. The enterprise could deduct 3000 yuan when the income tax was settled.

5, R & D expenses should be deducted from R & D special income.

In the process of R & D, enterprises will inevitably generate scrap, defective products, intermediate trial products and other materials, and will receive special income when they are disposed of or disposed of.

At present, raw and auxiliary materials such as raw materials have been collected into research and development expenses, and the special income obtained needs to be deducted from the corresponding R & D expenses.

Under normal circumstances, enterprises have such special income, we should pay attention to deduction.

Special attention should be paid to the deduction of special income for the failure of R & D activities.

The products directly formed by the enterprises in the external sales R & D activities or the products formed as part of them shall not be deducted from the cost of materials corresponding to the R & D expenses.

After the success of R & D, enterprises should form a result report in a timely manner, complete R & D activities, and stop the collection of R & D expenses.

Some enterprises continue to carry out R & D activities after their R & D products are successfully and mass produced, which is tax risk.

For example, in 8:2016, a pmission equipment company (high tech enterprise) developed an innovative pmission equipment A. Its R & D activities began in February and ended at the end of July, and began mass production in August.

In the process of R & D, the materials, labor and fees will be collected into the R & D cost according to the regulations.

The leftovers and defective products generated in the research and development process are stacked and the materials consumed by the developed products can be clearly accounted for.

In August, a comprehensive clean-up of R & D activities was carried out, and the sale of leftovers and defective products earned 100 thousand yuan. The sales of the developed equipment A earned 1 million yuan, and equipment A consumes 550 thousand yuan.

In August, in the concentration of R & D fees, the cost of research and development was reduced by 100 thousand yuan due to the sale of leftovers and defective products. The sale and equipment A was deducted and the R & D cost was 550 thousand yuan.

6, obtain the treatment of government subsidy funds.

The expenses or intangible assets formed by the enterprise to obtain financial funds used as a non taxable income for R & D activities shall not be calculated in addition to deductions.

The expenses or intangible assets formed by the financial funds that are not used as non taxable income for R & D activities may be calculated and deducted according to the regulations.

In the consolidated statement of R & D projects that can be deducted from research and development expenses published in the notice, the deduction of "special appropriations for research and development expenses obtained from relevant departments and parent companies" was abolished in the collection form of the original tax [2008] 116.

According to the Circular of the Ministry of Finance and the State Administration of Taxation on the issue of the treatment of enterprise income tax on special purpose financial funds (fiscal 2011 [70]), the fiscal funds handled as non taxable income need to meet three conditions simultaneously: enterprises can provide funds for special purpose funds to allocate documents; the financial departments or other government departments that allocate funds have special funds management methods or specific management requirements for the funds; the enterprises independently calculate the funds and expenditures arising from the funds.

As a result, the government's grant of funds to R & D activities will be more cost-effective than the non taxable income from the perspective of corporate income tax. It can enjoy the deduction of R & D fees and obtain substantial tax concessions.

From the perspective of the treatment of non taxable income, it is more convenient and convenient to deal with the government subsidy funds according to the tax revenue.

In the year of 8:2014, an electronic technology company carried out research and development activities, which met the conditions of deduction. The total cost of R & D was 1 million yuan, and the local government allocated 200 thousand yuan of technology funds for R & D activities.

In the annual R & D fee deduction report, the enterprises deducted according to the form of the collection form, and added a deduction of (100-20) x 50%=40 (10000 yuan).

In the same situation, if enterprises can get the government subsidy funds to deal with the tax revenue in 2016, there is no need to deduct the R & D expenses. When the enterprises can enjoy the R & D fee, they can deduct 100 x 50%=50 (10000 yuan).

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