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According to data, in 2021, enterprises will enjoy a tax reduction of 333.
3 billion yuan in advance of the R&D expense super-deduction policy, which further reduces the R&D cost of enterprises, increases cash flow, and enhances the innovation momentum
of enterprises.
In order to encourage enterprises to research and innovate, the State Council issued a new tax reduction policy, which is also another fiscal incremental policy
under the stabilization of the economy.
3 billion yuan in advance of the R&D expense super-deduction policy, which further reduces the R&D cost of enterprises, increases cash flow, and enhances the innovation momentum
of enterprises.
In order to encourage enterprises to research and innovate, the State Council issued a new tax reduction policy, which is also another fiscal incremental policy
under the stabilization of the economy.
Recently, the State Administration of Finance and Taxation issued the "Announcement on Tax Preferential Policies for Enterprise Investment in Basic Research" (hereinafter referred to as the "Announcement") to further encourage enterprises to increase investment in innovation and support the development of
basic research in China.
According to the Announcement, the expenditure of enterprises invested by enterprises to non-profit science and technology research and development institutions (hereinafter referred to as scientific research institutions), institutions of higher learning and government natural science funds for basic research can be deducted before tax according to the actual amount incurred when calculating taxable income, and can be deducted
at 100% before tax.
Non-profit scientific research institutions and institutions of higher learning are exempt from enterprise income tax
for receiving basic research funds from enterprises, individuals and other organizations.
basic research in China.
According to the Announcement, the expenditure of enterprises invested by enterprises to non-profit science and technology research and development institutions (hereinafter referred to as scientific research institutions), institutions of higher learning and government natural science funds for basic research can be deducted before tax according to the actual amount incurred when calculating taxable income, and can be deducted
at 100% before tax.
Non-profit scientific research institutions and institutions of higher learning are exempt from enterprise income tax
for receiving basic research funds from enterprises, individuals and other organizations.
The Announcement applies to the non-profit scientific research institutions and institutions of higher learning mentioned above, including scientific research institutions and institutions of higher learning established by the state, private non-profit scientific research institutions and institutions of higher learning; Government natural science funds and basic research refer to the analysis of the characteristics, structures and interrelationships of things, so as to elaborate and test various hypotheses, principles and laws are given relevant conditions for judgment
.
.
The Announcement proposes that non-profit scientific research institutions, institutions of higher learning and government natural science funds should do a good job in the management of funds invested by enterprises in basic research, establish and improve supervision mechanisms, ensure that funds are used for basic research, and improve the efficiency
of fund use.
The Announcement will be implemented
from January 1, 2022.
of fund use.
The Announcement will be implemented
from January 1, 2022.
The original text of the Announcement is as follows
.
.
Announcement of the State Administration of Taxation of the Ministry of Finance on preferential tax policies for enterprises investing in basic research
Ministry of Finance State Administration of Taxation Announcement No.
32 of 2022
32 of 2022
In order to encourage enterprises to increase investment in innovation and support the development of basic research in China, the following announcement is made on the relevant tax policies for enterprises investing in basic research:
1.
Expenditures for basic research funded by enterprises to non-profit science and technology research and development institutions (hereinafter referred to as scientific research institutions), institutions of higher learning and government natural science funds may be deducted before tax according to the actual amount incurred when calculating taxable income, and can be deducted
at 100% before tax.
Expenditures for basic research funded by enterprises to non-profit science and technology research and development institutions (hereinafter referred to as scientific research institutions), institutions of higher learning and government natural science funds may be deducted before tax according to the actual amount incurred when calculating taxable income, and can be deducted
at 100% before tax.
Non-profit scientific research institutions and institutions of higher learning are exempt from enterprise income tax
for basic research funds received by enterprises, individuals and other organizations.
for basic research funds received by enterprises, individuals and other organizations.
2.
Non-profit scientific research institutions and institutions of higher learning referred to in Article 1 include state-established scientific research institutions and schools of higher learning, private non-profit scientific research institutions and schools of higher learning, which shall be determined in accordance with the following conditions:
Non-profit scientific research institutions and institutions of higher learning referred to in Article 1 include state-established scientific research institutions and schools of higher learning, private non-profit scientific research institutions and schools of higher learning, which shall be determined in accordance with the following conditions:
(1) Scientific research institutions and institutions of higher learning established by the State refer to scientific research institutions and public institutions of higher learning established with financial funds and obtained the Certificate of Legal Person of Public Institutions, including scientific research institutions and institutions of higher learning affiliated to the central and local governments
.
.
(2) Private non-profit scientific research institutions and institutions of higher learning refer to scientific research institutions and institutions of higher learning that meet the following conditions at the same time:
1
.
Register with the civil affairs department in accordance with the Interim Regulations on the Registration and Administration of Private Non-Enterprises, and obtain the Registration Certificate of Private Non-Enterprises (Legal Persons).
.
Register with the civil affairs department in accordance with the Interim Regulations on the Registration and Administration of Private Non-Enterprises, and obtain the Registration Certificate of Private Non-Enterprises (Legal Persons).
2.
For private non-profit scientific research institutions, the business scope recorded in the "Private Non-enterprise (Legal Person) Registration Certificate" shall fall within the scope of
scientific research and technology development, transfer of achievements, scientific and technological consultation and services, and evaluation of scientific and technological achievements.
Where there is a dispute over the scope of business, the tax authority shall forward it to the administrative department for science and technology at or above the county level (inclusive) for confirmation
.
For private non-profit scientific research institutions, the business scope recorded in the "Private Non-enterprise (Legal Person) Registration Certificate" shall fall within the scope of
scientific research and technology development, transfer of achievements, scientific and technological consultation and services, and evaluation of scientific and technological achievements.
Where there is a dispute over the scope of business, the tax authority shall forward it to the administrative department for science and technology at or above the county level (inclusive) for confirmation
.
For private non-profit institutions of higher learning, a "Private School Running Permit" issued by the competent department of education shall be obtained, indicating that the type of school is "higher school"
.
.
3.
Certified as a non-profit organization with enterprise income tax exemption status
.
Certified as a non-profit organization with enterprise income tax exemption status
.
3.
The term "governmental natural science foundation" as used in Article 1 refers to the natural science fund
managed by the natural science foundation committee established by the state and local governments.
The term "governmental natural science foundation" as used in Article 1 refers to the natural science fund
managed by the natural science foundation committee established by the state and local governments.
4.
Basic research as used in Article 1 refers to the activity
of elaborating and testing various hypotheses, principles and laws by analyzing the characteristics, structures and interrelationships of things.
Specifically, it is judged by the following:
Basic research as used in Article 1 refers to the activity
of elaborating and testing various hypotheses, principles and laws by analyzing the characteristics, structures and interrelationships of things.
Specifically, it is judged by the following:
(a) Basic research does not presuppose a specific application or purpose of use, but is primarily aimed at acquiring new knowledge about the basic principles of phenomena and observable facts, and may aim at a wide range of future applications for known or cutting-edge scientific problems, or for certain broad fields of general interest
.
.
(2) Basic research can be subdivided into two types, one is free exploratory basic research, that is, in order to enhance knowledge, it does not pursue economic or social benefits, nor does it actively seek to apply it to practical problems or transfer the results to the department
responsible for application.
The second is goal-oriented (targeted) basic research, which aims to acquire certain aspects of knowledge and is expected to lay the foundation for exploring and solving problems that are currently known or may be discovered in the
future.
responsible for application.
The second is goal-oriented (targeted) basic research, which aims to acquire certain aspects of knowledge and is expected to lay the foundation for exploring and solving problems that are currently known or may be discovered in the
future.
(3) Basic research results are usually expressed as new principles, new theories, new laws or new knowledge, and are mainly
in the form of papers, works, research reports, etc.
At the same time, because basic research has a strong exploratory nature and there is a risk of failure, papers, books, research reports, etc.
can also be reflected in trial and error or falsification
.
in the form of papers, works, research reports, etc.
At the same time, because basic research has a strong exploratory nature and there is a risk of failure, papers, books, research reports, etc.
can also be reflected in trial and error or falsification
.
The above-mentioned basic research does not include research carried out abroad, nor does it include research
in the social sciences, arts or humanities.
in the social sciences, arts or humanities.
5.
Enterprises should sign relevant agreements or contracts for basic research to be funded, and the agreements or contracts should specify that the funds should be used for basic research fields
.
Enterprises should sign relevant agreements or contracts for basic research to be funded, and the agreements or contracts should specify that the funds should be used for basic research fields
.
6.
The management of enterprises and non-profit scientific research institutions, institutions of higher learning and government natural science funds shall retain relevant materials for future reference, including enterprise capital contribution agreements, capital contribution contracts, relevant bills, etc.
, and capital contribution agreements, capital contribution contracts and capital contribution notes shall contain information
such as the funder, the recipient, the purpose of capital contribution (indicated for basic research), and the amount of funds contributed.
The management of enterprises and non-profit scientific research institutions, institutions of higher learning and government natural science funds shall retain relevant materials for future reference, including enterprise capital contribution agreements, capital contribution contracts, relevant bills, etc.
, and capital contribution agreements, capital contribution contracts and capital contribution notes shall contain information
such as the funder, the recipient, the purpose of capital contribution (indicated for basic research), and the amount of funds contributed.
7.
The management of non-profit scientific research institutions, institutions of higher learning and government natural science funds shall do a good job in the management of funds invested by enterprises in basic research, establish and improve supervision mechanisms, ensure that funds are used for basic research, and improve the efficiency
of fund use.
The management of non-profit scientific research institutions, institutions of higher learning and government natural science funds shall do a good job in the management of funds invested by enterprises in basic research, establish and improve supervision mechanisms, ensure that funds are used for basic research, and improve the efficiency
of fund use.
8.
This announcement shall be implemented
as of January 1, 2022.
This announcement shall be implemented
as of January 1, 2022.
This is hereby announced
.
.
General Administration of Taxation, Ministry of Finance
September 30, 2022
