The State Administration of Taxation optimizes the application method for R&D expense deduction to help enterprises enjoy preferential policies in advance
Transforming the achievements of thematic education into initiatives that benefit enterprises
——The State Administration of Taxation optimizes the application method for additional deduction of research and development expenses to help enterprises enjoy preferential treatment in advance
Recently, the State Administration of Taxation issued a notice on optimizing the pre payment declaration and enjoying the policy of R&D expense deduction, which specifies that starting from 2023, eligible enterprises can declare and enjoy the preferential policy of R&D expense deduction in the first half of the year during the July declaration period each year.
The policy of additional deduction for video R&D expenses is a special preferential policy that incentivizes enterprises to increase their R&D investment, and belongs to a type of tax based preferential treatment for corporate income tax. Simply put, when calculating the taxable income of corporate income tax, in addition to deducting the actual amount of R&D expenses incurred by the enterprise, a certain proportion can also be deducted before corporate income tax, thereby achieving incentive and promotion of corporate R&D behavior. The more research and development investment a company makes, the more tax deductions it can receive.
In recent years, the country has focused on innovative development, closely meeting the needs and expectations of the majority of business entities, and has made significant efforts in optimizing the policy of adding and deducting research and development expenses. On the one hand, policy efforts are constantly increasing, reflected in the increase in deduction ratio and the expansion of the scope of beneficiaries. On the other hand, the policy time is advanced. In 2021, the State Administration of Taxation issued a notice allowing enterprises to enjoy additional deductions for research and development expenses in the first three quarters when prepaying and declaring in October; In 2022, institutionalize and long-term this measure; This time, this policy can also be enjoyed when adding a July prepayment declaration on the basis of the previous one.
The introduction of this optimization measure is a vivid practice by the tax department to conscientiously implement the requirements of thematic education and actively promote the transformation of achievements. It is reported that during the investigation and research process in Daxing, the State Administration of Taxation collected the demands of enterprises to increase the time point for applying for the policy of additional deduction of research and development expenses, and conducted special research on these demands. Together with the Ministry of Finance and the Ministry of Science and Technology, they specifically requested the approval of the State Council to form optimized and adjusted measures, allowing enterprises to enjoy the policy of additional deduction of research and development expenses incurred in the first half of the year when prepaying their applications in July. At present, the State Administration of Taxation is working hard to refine the tax collection and management operation methods, adjust the information system, and organize publicity and guidance to ensure the smooth implementation of policies as scheduled.
Professor Liu Rong from Southwest University of Finance and Economics explained that the benefits brought by the measures are obvious. Enterprises have more freedom in choosing the time to enjoy policies, and can choose to prepay and declare in July and October of the current year according to their actual situation, or enjoy them uniformly during the annual settlement and payment of the following year. The more important significance is to "reduce the burden and loosen the constraints" for enterprises, especially for technology-based small and medium-sized enterprises and enterprises with tight financial chains. The addition of the July declaration period allows enterprises to realize policy dividends early, allowing them to have more sufficient cash flow, and effectively helping them alleviate financial pressure.
Baili Pharmaceutical, located in Chengdu, Sichuan Province, is a high-tech industry in the pharmaceutical and health industry. After receiving the policy push, the financial manager of the company, Zhong Shaoquan, happily calculated on the spot: "We estimated that there was more than 27 million yuan in research and development investment in the first half of this year, and we enjoyed tax incentives for research and development expenses three months in advance, which means we have more working capital in our hands. This provides the most direct assistance for our clinical drug research and development."