1October 20 16 1 day, the new regulations on the addition and deduction of R&D expenses will be settled and paid on 20 16 as required. On the eve of the start of final settlement, State Taxation Administration of The People's Republic of China issued a notice to clarify the scope of implementation of R&D expenses plus deduction, requiring tax authorities at all levels to carry out multi-dimensional and multi-channel publicity, optimize tax payment services, and ensure that enterprises should enjoy R&D expenses plus deduction. This year, reporting R&D expenses plus deduction during the settlement period is different from previous years. Enterprises need to pay attention to the caliber of policy implementation and master the main points of operation in order to enjoy preferential treatment to the maximum extent and avoid risks. Significant benefits: A number of implementation standards have been clarified. State Taxation Administration of The People's Republic of China issued the Notice on Further Implementing the Pre-tax Addition and Deduction Policy for Enterprise R&D Expenses (Circular Letter [2016] No.685), requiring "20 17 1 May 3 1 to actually calculate and pay enterprise income tax, Document No.685 of the General Tax Letter [2016] has important policy-oriented significance for the implementation of the Notice of the Ministry of Finance, State Taxation Administration of The People's Republic of China and the Ministry of Science and Technology on Improving the Pre-tax Plus Deduction Policy of R&D Expenses (Caishui [2015]19), which clearly defines the plus deduction. Document No.685 [20 16], which is a major favorable tax letter, is obviously beneficial to enterprises in the direction of policy implementation, especially highlighting the service function of tax authorities. It is proposed that "from now until the whole period of enterprise income tax settlement, tax authorities at all levels should make full use of official websites, WeChat, Weibo, APP and other means to carry out multi-dimensional and multi-channel publicity to remind taxpayers to declare and enjoy preferential policies of addition and deduction in time. Carry out face-to-face accurate counseling through taxpayer schools and other means to expand the coverage of publicity and counseling, so as to facilitate enterprises to understand the policy and management requirements in time. ""We should give full play to the role of 123 66 tax service hotline, unify the policy caliber, standardize the policy answers, and answer questions for enterprises in time. ""Enterprises declare that they enjoy preferential policies of adding and deducting, but the accounts and certificates are not perfect, the information is incomplete or the applicable preferential policies are inaccurate. In fact, tax authorities are tax authorities. Article 7 of the Tax Administration Law clearly stipulates that "tax authorities should widely publicize tax laws and administrative regulations, popularize tax knowledge, and provide tax consulting services for taxpayers free of charge". The document [20 16]685 of the General Tax Letter highlights the government's service function and demonstrates the concept of administering taxes according to law. The tax-related problems in the early stage do not affect the total tax credit letter [20 16] No.685 clearly requires that "tax authorities at all levels should take the approval of preferential policies enjoyed by enterprises in 2016 as the benchmark when implementing preferential policies, and in principle do not approve the relevant information in previous years. If an enterprise has or finds tax-related problems in the previous year, it shall be dealt with separately according to the relevant regulations, which will not affect the enterprise's enjoyment of the preferential policy of 20 16. "The tax-related problems faced by enterprises should be handled in strict accordance with the relevant provisions of the Tax Administration Law. The main legal responsibilities include: (1) paying taxes and late fees; (two) suspected of tax evasion, in accordance with the provisions of the tax administration law and the criminal law, administrative punishment and criminal punishment. Re-emphasize that the document Caishui [2015]19 on the "three-year" retrospective enjoyment period clearly stipulates that "enterprises that meet the requirements for R&D expenses deduction stipulated in this notice and fail to enjoy tax benefits in time after 20 16 1 can enjoy them retroactively. The General Tax Letter [20 16] No.685 once again emphasizes that "enterprises that fail to declare in time to enjoy the preferential tax deduction policy for 2016 years can enjoy it retroactively in the next three years". DocumentNo. [20 16]685 of the General Tax Letter and DocumentNo. [2019]19 of the Ministry of Finance and Taxation did not specify the specific criteria for "untimely". The actual reasons may be complicated, including subjective and objective reasons of both tax and enterprise, related third parties and external objective reasons. How to define it, in the subsequent practice. Even if the scope of application is loose, from the perspective of corporate finance and cash management, it is more beneficial to enjoy tax incentives as soon as possible, mainly in: (1) reducing capital occupation and saving cash flow pressure; (2) to prevent potential disputes between tax enterprises and the subsequent tax-related legal risks. The tax authorities should "solve" the enterprise's demand for tax within 10 days. Document No.685 [20 16] stipulates that "tax authorities at all levels should solve the related problems and complaints reflected by taxpayers within 10 working days". A good relationship between tax collection and management and a high degree of compliance with the enterprise tax law come from the perfect tax law and standardized law enforcement, and also from the active and effective interaction between tax enterprises. Article 8 of the Tax Administration Law stipulates that "taxpayers and withholding agents have the right to know the provisions of national tax laws and administrative regulations and information related to tax payment procedures from the tax authorities", and "taxpayers and withholding agents have the right to accuse and report violations of laws and regulations by tax authorities and tax personnel". DocumentNo. [20 16]685 of the General Tax Letter gives more specific countermeasures on how to implement the above-mentioned taxpayers' rights, which should be solved within 10 days. Of course, what is the "solution" and how to define the standard will become a potential dispute in the subsequent implementation. Enterprises should improve the compliance of enjoying tax incentives. The document No.685 of the General Tax Letter [2016] has repeatedly stressed that it is necessary to "implement" the preferential policy of R&D expenses plus deduction, and "strengthen supervision and inspection and strengthen implementation". It should be noted that the documentNo. [20 16]685 of the General Tax Letter does not make new provisions on the entities and procedures for adding and deducting R&D expenses, but it should be strictly implemented in accordance with the documentNo. [2015]19 of Caishui. Although the document Caishui [20 15] 1 19 reduces the examination procedures and expands the scope of expenses, it also stipulates that the tax authorities should strengthen the preferential management of this preferential policy and make it clear that the annual approved area shall not be less than 20%. Therefore, enterprises should strengthen the management of R&D projects, collect R&D expenses reasonably and accurately, and set up R&D expense auxiliary accounts, so as to enhance the awareness of risk prevention and improve the ability of crisis resolution. Innovative enterprises: Mastering four practical points is compared with the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing the Administrative Measures for Pre-tax Deduction of Research and Development Expenses of Enterprises (Trial) (Guo Shui Fa [2008] No.65438 +0 16) and Caishui [2015] No.65438) issued and implemented in 2008. Understand the application procedures, make full preparations for filing, and keep the information for future reference. Article 13 of Guo Shui Fa [2008] 1 16 stipulates that if the competent tax authorities have objections to the R&D projects declared by enterprises, they may require enterprises to provide the appraisal opinions of government science and technology departments. According to this regulation, the enterprise's declaration of R&D expenses plus deduction needs to be submitted to the Science and Technology Commission for appraisal; After the adoption of the Science and Technology Commission, the enterprise shall submit the information to the competent tax bureau for examination and approval; If approved, the deduction is allowed, that is, the appraisal by the Science and Technology Commission is a prerequisite and a necessary procedure. Item 3 of Article 5 of Caishui [2015]19 stipulates that if the tax authorities have any objection to the R&D projects that enterprises enjoy preferential treatment, they can put forward appraisal opinions to the administrative departments of science and technology at the prefecture level, and the scientific and technological departments should reply in time. According to this regulation, the appraisal of the Science and Technology Commission is no longer the pre-link, and the enterprise will directly submit the application materials to the tax authorities. If the tax authorities have any objection, they may submit it to the Municipal Science and Technology Department for an appraisal opinion. Suggestion: According to the document Caishui [2015]19, it is not necessary for the science and technology commission to declare the additional deduction, which reduces the review procedure, which is a great benefit for enterprises, but it also causes many enterprises to be confused about whether the project can be added and deducted. Therefore, enterprises should standardize the management of R&D projects, and manage the whole process of R&D projects by establishing perfect project establishment, budget, approval and final accounts. Prepare perfect records and keep reference materials. The increase or decrease of R&D expenses shall be managed by filing. According to the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Issuing Preferential Policies and Measures for Handling Matters of Enterprise Income Tax (Announcement No.76 of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) No.2015), the information that enterprises need to prepare is arranged as follows (see chart). Reasonable collection of personnel labor costs, the preparation of R&D personnel working hours distribution table Caishui [2015]19 document canceled the requirement of personnel labor costs "on-the-job", and the labor costs of external R&D personnel can also be deducted, which met the requirements of enterprises for R&D flexibility. At the same time, item 4, item 3, Article 6 of the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Relevant Issues Concerning the Pre-tax Plus Deduction Policy for Enterprise R&D Expenses (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.9715) clearly states that an enterprise shall submit the enterprise income tax preferential filing form, R&D project documents and materials for future reference to the tax authorities no later than the annual tax return. Including the explanation of "personnel engaged in R&D activities and personnel used for R&D" can more accurately explain the generation process of personnel labor expenses in enterprise R&D expenses, and facilitate the follow-up management suggestions of tax authorities on the basis of adapting to the diversity of enterprise R&D: 1. Improve the management of R&D personnel. Enterprises can set up a special R&D department or determine the members of the R&D project team according to the scale, and keep relevant approval documents for future reference. 2. Prepare the working time allocation table for R&D personnel. (1) If scientific and technical personnel take part in multiple R&D projects at the same time, they shall work out the working hours allocation table according to the working hours of each project, and reasonably allocate the salaries and benefits of R&D personnel according to the actual working hours of participating projects, and keep the working hours allocation table for future reference. (2) If the scientific and technical personnel do not work exclusively in R&D, but also undertake production or other work, or the R&D cycle of a project is short, a man-hour distribution table should be prepared, which should be summarized monthly according to the actual time of scientific and technical personnel engaged in R&D every month, so as to reasonably collect the labor costs of this part of personnel. Strictly distinguish between production and R&D, and prepare auxiliary accounting vouchers such as R&D application forms and approval forms. Caishui [20 15] 1 19 expanded the scope of direct investment, depreciation expenses and amortization expenses of intangible assets, and cancelled the "special" restrictions. At the same time, however, it is stipulated that enterprises should separately calculate R&D expenses and production and operation expenses, accurately and reasonably collect all expenses, and shall not increase or decrease unknown expenses. In practice, if the cost of "direct investment and depreciation" is too high, especially when the ratio of the total material cost to the total depreciation is too high, the tax authorities will ask the enterprise to issue an explanation. Suggestion: Enterprises should strictly distinguish production from R&D in their daily operation and management, and prepare purchase requisition and approval form for supplementary accounting. Arbitrary allocation of R&D expenses is a common problem in enterprises, such as depreciation expenses and long-term deferred expenses, amortization expenses of intangible assets, direct investment, personnel and services. If the enterprise simply approves a certain proportion as the distribution proportion, and there is no corresponding basis to support it, it is difficult to pass the inspection, and the setting of the approval form can better explain the setting of the distribution proportion and provide strong data support for the redistribution of R&D expenses. The document Caishui [2015]19 changed from requiring enterprises to "manage R&D expenses in special accounts" to "set up auxiliary accounts according to the R&D expenses added and deducted for R&D projects", which lightened the accounting burden of enterprises, but it was a great challenge for enterprises that did not set up auxiliary accounts for R&D expenses. Suggestion: Establish an auxiliary account for R&D expenses. The annex of Caishui document [2015]19 contains a sample table of auxiliary accounts for enterprises' reference, and enterprises should establish auxiliary accounts for R&D expenses for future reference. The specific process includes: setting up subjects and a complete voucher system that meet the enterprise's own R&D needs → collecting original materials (including detailed accounts of R&D expenses and valid vouchers related to R&D activities, etc. ) → Establish an auxiliary account for R&D expenses by project and year → Compare and check the valid vouchers with the auxiliary account.

Legal objectivity:

Article 12 of the Enterprise Income Tax Law of People's Republic of China (PRC) * * * When calculating taxable income, it is allowed to deduct the amortization expenses of intangible assets calculated by enterprises according to regulations. Amortization expenses shall not be deducted for the following intangible assets: (1) Intangible assets whose self-development expenses have been deducted when calculating taxable income; (2) Self-created goodwill; (3) Intangible assets unrelated to business activities; (4) Other intangible assets that cannot be deducted from amortization expenses.