Circular on Improving the Policy on the Pre-tax Additional Deduction for Research and Development Expenses
Circular on Improving the Policy on the Pre-tax Additional Deduction for Research and Development Expenses
Circular on Improving the Policy on the Pre-tax Additional Deduction for Research and Development Expenses
Cai Shui [2015] No. 119
November 2, 2015
The finance departments (bureaus), local offices of the State Administration of Taxation, local taxation bureaus and science and technology departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the State plan, and the Financial Bureau and the Science and Technology Bureau of Xinjiang Production and Construction Corps,
In accordance with the relevant provisions of the Law of the People's Republic of China on Enterprise Income Tax and its implementing regulations, and in order to further implement the spirit of the Several Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting Further Systemic and Institutional Reforms to Accelerate the Implementation of Innovation-driven Development Strategies, better encourage enterprises to carry out research and development activities (hereinafter referred to as the "research and development activities") and standardize the implementation of the preferential policy on the additional deduction of research and development expenses (hereinafter referred to as the "research and development expenses") of enterprises, issues concerning the pre-tax additional deduction of research and development expenses of enterprises are hereby notified as follows:
I. Research and Development Activities and the Consolidated Scope of Research and Development Expenses
For the purpose of this Circular, the research and development activities refer to the systematic activities with specific goals constantly carried out by enterprises in order to gain and creatively apply new knowledge of science and technology, or materially improve technologies, products (services) and techniques.
(I) The research and development expenses entitled to additional deduction.
Where the research and development expenses that are actually incurred in the research and development activities of enterprises and do not constitute intangible assets recorded into the current profit or loss, such expenses shall be deducted from the taxable income for the current year at 50% of the actual amount incurred in the current year and on an actual basis as required; if intangible assets are constituted, such expenses shall be amortized at 150% of the costs of the intangible assets before tax.
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Cai Shui [2015] No. 119
November 2, 2015
The finance departments (bureaus), local offices of the State Administration of Taxation, local taxation bureaus and science and technology departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the State plan, and the Financial Bureau and the Science and Technology Bureau of Xinjiang Production and Construction Corps,
In accordance with the relevant provisions of the Law of the People's Republic of China on Enterprise Income Tax and its implementing regulations, and in order to further implement the spirit of the Several Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting Further Systemic and Institutional Reforms to Accelerate the Implementation of Innovation-driven Development Strategies, better encourage enterprises to carry out research and development activities (hereinafter referred to as the "research and development activities") and standardize the implementation of the preferential policy on the additional deduction of research and development expenses (hereinafter referred to as the "research and development expenses") of enterprises, issues concerning the pre-tax additional deduction of research and development expenses of enterprises are hereby notified as follows:
I. Research and Development Activities and the Consolidated Scope of Research and Development Expenses
For the purpose of this Circular, the research and development activities refer to the systematic activities with specific goals constantly carried out by enterprises in order to gain and creatively apply new knowledge of science and technology, or materially improve technologies, products (services) and techniques.
(I) The research and development expenses entitled to additional deduction.
Where the research and development expenses that are actually incurred in the research and development activities of enterprises and do not constitute intangible assets recorded into the current profit or loss, such expenses shall be deducted from the taxable income for the current year at 50% of the actual amount incurred in the current year and on an actual basis as required; if intangible assets are constituted, such expenses shall be amortized at 150% of the costs of the intangible assets before tax.
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