R&D expenses plus deduction to stimulate vitality

Tech 2023-07-23 08:13:20 Source: Network

The policy of adding and deducting research and development expenses is an important policy lever to encourage technological innovation. Hebei strengthens its position as the main body of enterprise innovation, makes full use of the R&D expense deduction policy, and creates a favorable environment for enterprise innovation and development

The policy of adding and deducting research and development expenses is an important policy lever to encourage technological innovation. Hebei strengthens its position as the main body of enterprise innovation, makes full use of the R&D expense deduction policy, and creates a favorable environment for enterprise innovation and development. Since 2022, the number of enterprises in Hebei Province that enjoy the policy of deducting R&D expenses has increased by 65%, and the atmosphere of innovation and development is becoming increasingly strong, effectively supporting high-quality economic development.

Policy upgrading and expanding development space

Recently, Tangshan Panasonic Industrial Machinery Co., Ltd. declared an additional deduction discount of 17.29 million yuan for research and development expenses in the first half of this year, with a preliminary estimate of 2.59 million yuan for corporate income tax reduction. Unlike previous years, this declaration was advanced by three months.

According to the announcement recently issued by the State Taxation Administration and the Ministry of Finance, from 2023, eligible enterprises can declare and enjoy the preferential policy of additional deduction of R&D expenses in the first half of the year in the July declaration period.

The policy of adding and deducting R&D expenses to reduce the tax burden on enterprises encourages them to increase R&D investment, helps accelerate the construction of a modern industrial system, and promotes the implementation of the innovation driven development strategy. "Zhang Yong, a first level researcher at the Policy and Regulations Department of the Hebei Provincial Department of Science and Technology, introduced that adding and deducting is a tax based preferential method for enterprise income tax, with the core being" adding ", It refers to the expenses that should have been deducted truthfully when calculating the taxable income of a company, but now more can be deducted. This means that the more R&D investment a company has, the more taxes and fees it can deduct. As expenses are deducted, the taxable income is correspondingly reduced, thereby reducing the burden on the company and injecting vitality into sustainable development.

The development of enterprises cannot be separated from the fertile land of innovation. In recent years, Hebei Province has focused on stimulating the innovation drive and vitality of innovation entities, conscientiously implementing policies for the addition and deduction of research and development expenses, and allowing more technology enterprises to enjoy wave after wave of policy dividends.

On the one hand, enjoy the policy ahead of schedule. From October 2021, enterprises can enjoy an additional deduction for their R&D expenses in the first three quarters when making prepayments and declarations. By July this year, they can enjoy this policy for their R&D expenses in the first half of the year when making prepayments and declarations. The early payment of R&D expenses plus deduction of policy dividends means that the enterprise holds more working capital and gains opportunities for development. On the other hand, policy efforts are constantly increasing. The deduction ratio is gradually increasing, and the scope of beneficiaries is gradually expanding. The proportion of additional deduction for R&D expenses of manufacturing enterprises has been increased from 75% to 100%, which is equivalent to deducting 2 million yuan from taxable income for every 1 million yuan invested in R&D expenses.

"From 75% to 100% of the surcharge deduction to long-term implementation, the company's R&D confidence has become more and more sufficient due to the continuous efforts of the policy." Gan Wei, general manager of Hengshui Plate Industry Co., Ltd. of Hesteel Group, introduced that as a high-tech enterprise focusing on the research, development, production and sales of high-end food grade tinplate, the company firmly seized the policy opportunity, actively applied for policy preferences, and promoted the enterprise to accelerate innovation and development. In 2022, the company enjoyed an additional deduction of 10.96 million yuan for research and development expenses.

By enjoying the policy of deducting R&D expenses, the company's R&D investment continues to increase, and the proportion of R&D expenses in operating revenue has been increasing year by year. The R&D capability has been effectively improved. As of now, the company has more than 110 patents, and the product technology and quality have reached the leading level in China. "Gan Wei said.

A series of measures have been successively introduced to promote innovation driven development of enterprises, expand broad development space, and at the same time, inject strong momentum into the growth of Hebei's economy and promote high-quality development, "said Wang Xin, Director of the Policy and Regulations Department of the Hebei Provincial Department of Science and Technology.

Service Optimization Helps Direct Express Enjoyment

This time, the company successfully enjoyed the preferential policy of R&D expenses plus deduction, thanks to the assistance and guidance of the technology and tax departments. In October of last year, the company's finance department had doubts about the collection of expenses. After the relevant departments learned about the situation, they established a coaching group to help the company improve its information and accurately enjoy the preferential policies. "said Ye Guangyu, Chairman of Cangzhou Huibang Mechanical and Electrical Products Manufacturing Co., Ltd. Every time the policy was updated, Before the final settlement and payment of corporate income tax, the local tax department will send experts to guide the enterprise, and the technology department will also answer the enterprise's questions at any time through online and offline channels.

Policy dividends are good, but landing is more important. Hebei Province has issued the "Several Measures for the Additional Deduction of R&D Expenses for Science and Technology Support Enterprises", which aims to "support the full use of policies by enterprises" and "guarantee the entire process" in precise services.

In view of the difficulties faced by enterprises, especially small and medium-sized enterprises, in reporting, identification and accounting when enjoying policies, the Department of Science and Technology of Hebei Province has also cooperated with the State Taxation Administration and the Hebei Provincial Taxation Bureau to develop the "Smart Hebei Plus Deduction" service platform, which has set up five functional modules: policy interpretation, project cultivation, one click collection, third-party services, and data statistics. By logging into the platform and filling out each item according to the requirements, enterprises can collect R&D expenses in a standardized and accurate manner.

At first, the company was also concerned about tax risks caused by improper operation during the process of enjoying the R&D expense deduction policy. The technology and tax departments at all levels organized policy training and enterprise promotion and guidance, which dispelled our doubts. "Zhang Lichun, the R&D department manager of Yingke New Materials Co., Ltd. located in Chengde, said that using the" Smart Hebei Deduction "service platform has significantly simplified the amount of information reported in accounting statements, Optimized the calculation method for collecting research and development expenses, greatly reducing the accounting burden. Enjoying the policy of deducting research and development expenses, the company has continuously strengthened technological innovation and achieved transformation and upgrading from traditional fluorine chemical raw materials to the field of new materials.

As of the end of June this year, more than 5200 enterprises have registered to use the "Smart Hebei Plus Deduction" service platform, and the collection of enterprise research and development expenses has been reduced from an average of 10 working days to 1 working day.

We have formulated guidelines for professional service institutions that deduct R&D expenses, clarify service content and standards, and identified 26 professional service institutions. These service institutions provide services to enterprises, assist them in establishing R&D management systems, guide them in improving accounting systems, and establish R&D auxiliary accounts. Wang Xin introduced, fully leveraging the role of professional service institutions, The purpose is to enable enterprises to enjoy the full and early benefits of the R&D expense deduction policy.

Dividend release stimulates creative vitality

Qinhuangdao Tianye Tonglian Heavy Industry Technology Co., Ltd. is an enterprise dedicated to the development, production, and sales of large-scale bridge construction equipment, various large and ultra large cranes, large span conveyors, special transportation vehicles, and tunnel equipment. The bridge erection equipment we have developed allows bridge erection to be like building blocks in the air, which can be completed by lifting box girders. Previously, the equipment could only erect box girders below 32 meters. In order to achieve the erection of 40 meter and 1000 ton box girders, the company squeezed out additional operating funds to invest in research and development. However, due to the long research and development cycle and high research and development difficulty, it was once in a difficult situation, "said Wang Dajiang, the deputy chief engineer of the company.

The staff of the Qinhuangdao Science and Technology Bureau voluntarily visited the company to guide it in enjoying the R&D deduction policy, ultimately saving over 8 million yuan in income tax. The company invested this money in the purchase of experimental equipment and talent introduction. After hundreds of mathematical modeling, simulation, and analysis, it finally successfully developed this equipment, which has been used in the construction of the Changjinghuang high-speed railway.

Those who observe trends are wise, while those who follow trends are wise. More and more Hebei technology enterprises, like Tianye Tonglian, are making good use of policy dividends, pressing the innovation and development acceleration button, continuously increasing research and development investment, and consolidating and enhancing core competitiveness.

In 2022, Hebei added 1300 new national high-tech enterprises, and the number of national technology-based small and medium-sized enterprises reached over 9600, with a growth rate of over 150%, ranking second in the country; Among the 229 Hebei Province Technology Invention Award and Science and Technology Progress Award winning projects, 62.89% of them were led or participated in by enterprises, and the vitality of innovation and creation is surging in Hebei.

We continue to strengthen the position of enterprises as the main body of innovation, carry out special actions to serve the innovation needs of enterprises, increase the support services for technology research and development, platform construction, and listing financing, improve the gradient cultivation system for technology enterprises, implement a subsidy system for research and development investment, deepen the technology special mission services for enterprises, promote enterprises to radiate new vitality in innovation, and inject strong momentum into the economic development of the province Zhang Yongqiang, Deputy Director of the Science and Technology Department of Hebei Province, stated.

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