2021年11月27日

Implementation of the new tax reduction policy for R&D expenses of manufacturing enterprises: “Made in Jiangsu” has been promoted to add new impetus

Implementation of the new tax reduction policy for R&D expenses of manufacturing enterprises: “Made in Jiangsu” has been promoted to add new impetus

An executive meeting of the State Council, China’s cabinet, held on March 24, announced policies to increase the proportion of R&D expenses deducted by manufacturing enterprises to encourage enterprises to innovate and promote industrial upgrading. The meeting decided that starting from January 1 this year, the proportion of additional deductions for research and development expenses of manufacturing enterprises will be raised from 75 percent to 100 percent. Jiangsu is a big manufacturing province. What are the highlights of the new gift package? What surging power will it bring to “Made in Jiangsu”? In this regard, the reporter 25 in-depth line of enterprises, tax authorities launched research.

Only by mastering the core technology,

So you don’t get stuck in the neck.

“This data monitoring command center is a key core function, as a research and development project, the company organized a research and development team to develop it.”

On March 25, the reporter came to the China Railway 14th Bureau Group Shield Engineering Co., Ltd., located in Pukou District, Nanjing. In the data monitoring command center, the reporter saw that Nanjing and Yan Road Yangtze River tunnel project process has been more than half. Du zujun, head of the finance and assets department of the shield company of China Railway 14th Bureau Group, repeatedly stressed the importance of “parameters” while introducing the progress of each project on the map. Behind the “metrics” he said, there was always one word: technological innovation.

China Railway 14th Bureau Group Large Shield Engineering Co., Ltd. is currently the only professional construction enterprise of large shield in China. The brand of large shield is ranked first among the “Top Ten Brands” of China Railway Construction Co., Ltd. The construction projects involve the engineering fields of urban access, underwater shield of rivers, lakes and seas, rail transit, comprehensive pipe gallery, sponge city and so on.

The super-large diameter and large-diameter underwater shield tunnel projects, such as nanjing Yangtze river tunnel, yangzhou lean west lake tunnel and wuhan metro line 8 Yangtze river tunnel, have been completed, checked and accepted and put into use. Among them, nanjing Yangtze river tunnel project, known as “the best work” and “the first tunnel along the Yangtze river”, represents the highest standard of large underwater shield tunnel construction in China. Its two achievements won the second prize of national science and technology progress, the “luban award”, “zhan tianyou award” and the “national high quality project gold award”.

“Science and technology is the primary productive force. How important it is to have a core technology that is autonomous and controllable!” Recalling the founding of the company, Du Zhujun is very sad, in 2005, the company was still very “weak”, the key components from research and development to maintenance can only ask German technical experts to do. “The German specialist starts billing as soon as he goes out, and as soon as it’s time to leave, the tools are gone. These two things made us realize that we had to master the core skills to not get ‘stuck’.”

“With the continuous increase of R&D investment, we have set up research institutes and technology centers one after another. We also really feel the benefits of a series of tax and fee reduction policies introduced by the government. In the past four years, we have accumulated 420 million yuan of additional deductions for R&D expenses of manufacturing enterprises and enjoyed other tax incentives of more than 90 million yuan.” Du Zujun said that this year had planned to build an independent remanufacturing base of shield machines in Nanjing, and further increase investment in research and development, “just heard that the state will deploy and implement policies such as increasing the proportion of R&D expenses deducted by manufacturing enterprises, which makes us more determined!”

Tax breaks for research and development,

It’s good for business

Starting from January 1 this year, the proportion of R&D expenses deducted by manufacturing enterprises will be raised from 75 percent to 100 percent. This means that for every 1 million yuan of R&D expenses invested by enterprises, 2 million yuan can be deducted from their taxable income. We will reform the accounting method of additional deduction for R&D expenses, allowing enterprises to choose to enjoy additional deduction on a half-year basis. The R&D expenses in the first half of the year can be deducted when the income tax is paid in advance in October of the current year instead of when the income tax is settled in the final settlement of the next year.

What to make of this new policy? In the State Administration of Taxation Nanjing Pukou District Tax Bureau, tax administration of the first section of the relevant responsible person Wang Yifeng made a detailed explanation to the reporter —

Practicing the purpose of “Gathering wealth for the country and collecting taxes for the people”, generally speaking, in the process of enterprise development, value-added tax, enterprise income tax, individual income tax, social security expenses and so on will be involved. And manufacturing enterprises research and development expenses plus deductions are mainly applicable to the corporate income tax part.

According to the Enterprise Income Tax Law of the People’s Republic of China, the enterprise income tax rate is 25%. For qualified small enterprises with low profits, the enterprise income tax shall be levied at a reduced rate of 20%. For high and new technology enterprises that need to be supported by the state, the enterprise income tax shall be levied at a reduced tax rate of 15%.

“The part of a manufacturing company that needs to pay income tax can be understood as its profit part, that is, the part of revenue less costs and expenses. The additional deduction for R&D expenses of manufacturing enterprises is an additional deduction on the basis of costs and expenses.” If the tax rate is 25%, for example, a company’s annual revenue is 2 million yuan. After deducting costs and expenses, the total is 1 million yuan. The remaining 1 million yuan is subject to corporate income tax, or taxable income, Wang said. Assumes that the costs and fees of 1 million yuan, 500000 yuan claim additional deduction r&d to satisfy manufacturing enterprise r&d policy, according to the research and development costs 500000 yuan will be first to the proportion of 75% to deduct again (now the ratio from 75% to 100%, means that can deduct all of the 500000 RMB), and finally the enterprise only pay enterprise income tax for the amount of taxable income from the original 1 million yuan to 1 million yuan minus the r&d manufacturing basis at the rest of the deduction of 500000 yuan, and then multiplied by 25% “.

On the other hand, the reform of R&D expenses plus deduction settlement accounting method is also very different from before. “Previously, it was only calculated when the final settlement was made in the following year, but now it can be included in the calculation in the current year.” One of the biggest benefits, Wang said, is that companies can benefit as soon as possible and have a rich capital pool for turnover and development.

The tax cut enabled manufacturing enterprises

Strive for the top more confident

We will implement a new policy to increase the proportion of additional tax deductions for R&D expenses of manufacturing enterprises. We expect to cut taxes by an additional 80 billion yuan for enterprises this year, on top of the over 360 billion yuan cut in taxes last year. This institutional arrangement is the most aggressive structural tax cut this year.

Jiangsu is a big economic province, but also a big manufacturing province, the new policy can bring fish and water, its role is self-evident. In all parts of the province, a lot of manufacturing enterprise leaders, financial responsible person told reporters, “the enterprise to climb the peak, the first-class confidence is more sufficient!”

Changzhou Wujin National High-tech Zone Hengli Hydraulic Co., Ltd. financial director Peng Mei said that manufacturing research and development fee deductions from 75% to 100%, enterprises are expected to enjoy additional deductions of about 80 million yuan, will greatly improve the enthusiasm for enterprise development. “We will live up to expectations, not only to stand forever, but to stand boldly ahead of the tide.”

“Robots are the key to intelligent manufacturing in the equipment industry, even the core equipment. As a state-level high-tech enterprise, Huibo has always been aiming to solve the ‘bottleneck’ problem in the robot industry.” Dai Guangqin, Financial Manager of Jiangsu Huibo Robotics Technology Co., Ltd., Suzhou Industrial Park, said, “We have been increasing our efforts in research and development to improve the added value and competitiveness of our products. After the implementation of the new policy, we will be able to deduct an additional 3.395,800 yuan from last year’s R&D investment, which will give our enterprises a better incentive to step up innovation and research, “he said.

“Based on 2020 data, the company can deduct nearly 10 million yuan of corporate income tax.” Long telegram, jiangsu science and technology co., LTD., senior vice President of yuan-fu wang said, “the State Council executive meeting yesterday again claim additional deduction has been clear about the r&d of the new policy, and put forward reform r&d collectively withholding tax accounting, accelerate the preferential fall bags, will effectively promote the enterprises to speed up the turnover of funds, greatly boosted the confidence of enterprise innovation and development.”

Reporter Wang Jianpeng

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