Circular of Ministry of Finance State and Administration of Taxation on Preferential Enterprise Income Tax Policies for Technology Innovation
Circular of Ministry of Finance State and Administration of Taxation on Preferential Enterprise Income Tax Policies for Technology Innovation
Circular of Ministry of Finance State and Administration of Taxation on Preferential Enterprise Income Tax Policies for Technology Innovation
Cai Shui [2006] No. 88
September 8, 2006
Public finance departments (bureaus), state taxation bureaus and local taxation bureaus of all provinces, autonomous regions and municipalities under the Central Government and cities specifically designated in state plan, and the Public Finance Bureau of Xinjiang Production and Construction Corps.
With a view to implementing the Outline for the State Mid/Long-term Scientific and Technical Development (2006-2020) (Guo Fa [2005] No. 44), we hereby notify the related preferential policies for enterprise income taxes of technical innovation enterprises as follows under the Notice of the State Council on Printing, Distributing and Implementing Several Supporting Policies for the Outline for the State Mid/Long-term Scientific and Technical Development (2006-2020) (Guo Fa [2006] No. 6),
I. With regard to the Expenditure for Technical Development
As regards the Chinese-funded and foreign-funded enterprises, scientific research institutions and universities and colleges with perfect financial verification system and tax collection by checking accounts (hereinafter referred to as the enterprises), the expenditure for technical development occurring for the research and development of new products, new technologies and work techniques shall be deducted before tax collection under the related provisions.
The following items of expenditure for technical development that actually occur within the tax year of any of the aforesaid enterprises is allowed, on the basis of 100% offset under the related provisions, to be re-deducted at the rate of 50% of the amount that actually occurs before the enterprise income tax is collected, which shall include the expenditure for new product designs, expenditure for formulating technical procedures, expenditure for equipment adjustments, expenditure for trial production of raw materials and semi-products, expenditure for technical books and materials, expenditure for intermediate experiments that have not been included into the state plan, wages of researchers, depreciation of instruments and equipments for research and development, expenditure for commissioning any other entity or individual to make scientific research and trial production and other expenditure directly related to scientific research and trial production.
The part that fails to be offset with the expense for technical development that actually occurs in an enterprise's annual year may be offset with the taxable income of the enterprise in the next following year, for which the time limit for offset may not be longer than 5 years.
II.
......
Cai Shui [2006] No. 88
September 8, 2006
Public finance departments (bureaus), state taxation bureaus and local taxation bureaus of all provinces, autonomous regions and municipalities under the Central Government and cities specifically designated in state plan, and the Public Finance Bureau of Xinjiang Production and Construction Corps.
With a view to implementing the Outline for the State Mid/Long-term Scientific and Technical Development (2006-2020) (Guo Fa [2005] No. 44), we hereby notify the related preferential policies for enterprise income taxes of technical innovation enterprises as follows under the Notice of the State Council on Printing, Distributing and Implementing Several Supporting Policies for the Outline for the State Mid/Long-term Scientific and Technical Development (2006-2020) (Guo Fa [2006] No. 6),
I. With regard to the Expenditure for Technical Development
As regards the Chinese-funded and foreign-funded enterprises, scientific research institutions and universities and colleges with perfect financial verification system and tax collection by checking accounts (hereinafter referred to as the enterprises), the expenditure for technical development occurring for the research and development of new products, new technologies and work techniques shall be deducted before tax collection under the related provisions.
The following items of expenditure for technical development that actually occur within the tax year of any of the aforesaid enterprises is allowed, on the basis of 100% offset under the related provisions, to be re-deducted at the rate of 50% of the amount that actually occurs before the enterprise income tax is collected, which shall include the expenditure for new product designs, expenditure for formulating technical procedures, expenditure for equipment adjustments, expenditure for trial production of raw materials and semi-products, expenditure for technical books and materials, expenditure for intermediate experiments that have not been included into the state plan, wages of researchers, depreciation of instruments and equipments for research and development, expenditure for commissioning any other entity or individual to make scientific research and trial production and other expenditure directly related to scientific research and trial production.
The part that fails to be offset with the expense for technical development that actually occurs in an enterprise's annual year may be offset with the taxable income of the enterprise in the next following year, for which the time limit for offset may not be longer than 5 years.
II.
......