Four departments including the Ministry of Finance: Increase the super deduction ratio of R&D expenses for integrated circuit and industrial machine companies

Zhitong Finance APP learned that on September 18, the Ministry of Finance and other four departments issued the "Announcement on Increasing the Super Deduction Ratio of R&D Expenses for Integrated Circuit and Industrial Base Machine Enterprises". The announcement pointed out that the actual implementation of R&D activities by integrated circuit companies and industrial base machine companies Research and development expenses incurred that do not form intangible assets and are included in the current profits and losses will be deducted in accordance with regulations. During the period from January 1, 2023 to December 31, 2027, 120% of the actual amount incurred will be deducted. Deduction before tax; if an intangible asset is formed, it will be amortized before tax at 220% of the cost of the intangible asset during the above period.

The original text is as follows:

Announcement on Increasing the Super Deduction Ratio of R&D Expenses for Integrated Circuit and Industrial Machinery Enterprises

Ministry of Finance, State Administration of Taxation, National Development and Reform Commission, Ministry of Industry and Information Technology Announcement No. 44 of 2023

In order to further encourage enterprise R&D innovation and promote the high-quality development of the integrated circuit industry and industrial motherboard industry, the policy on the pre-tax super deduction of R&D expenses for relevant enterprises is hereby announced as follows:

1. The R&D expenses actually incurred by integrated circuit enterprises and industrial machine enterprises in carrying out R&D activities, and which have not formed intangible assets and are included in the current profits and losses, will be deducted from January 1, 2023 to December 2027 on the basis of actual deductions in accordance with regulations. During the period of March 31, 120% of the actual amount will be deducted before tax; if intangible assets are formed, 220% of the cost of the intangible assets will be amortized before tax during the above period.

2. The integrated circuit enterprises mentioned in Article 1 refer to integrated circuit production, design, equipment, materials, packaging, and testing enterprises encouraged by the state. Specifically determined according to the following conditions:

(1) Integrated circuit manufacturing enterprises encouraged by the state refer to those enterprises that comply with the "Announcement of the Ministry of Finance, State Administration of Taxation, Development and Reform Commission, Ministry of Industry and Information Technology on Enterprise Income Tax Policies on Promoting the High-quality Development of the Integrated Circuit Industry and Software Industry" (Development and Reform of the Ministry of Finance, State Administration of Taxation The list of production enterprises or project-owned enterprises specified in Article 1 of the Ministry of Industry and Information Technology Announcement No. 45 of 2020 shall be formulated by the National Development and Reform Commission, the Ministry of Industry and Information Technology, together with the Ministry of Finance, the State Administration of Taxation and other departments.

(2) Integrated circuit design enterprises encouraged by the state refer to those enterprises that comply with the "Announcement of the Ministry of Finance, State Administration of Taxation, Development and Reform Commission, Ministry of Industry and Information Technology on Enterprise Income Tax Policies for Promoting the High-Quality Development of the Integrated Circuit Industry and Software Industry" (Development and Reform of the Ministry of Finance, State Administration of Taxation The list of key integrated circuit design enterprises stipulated in Article 4 of the Ministry of Industry and Information Technology Announcement No. 45 of 2020 is formulated by the National Development and Reform Commission, the Ministry of Industry and Information Technology, together with the Ministry of Finance, the State Administration of Taxation and other departments.

(3) Integrated circuit equipment, materials, packaging, and testing enterprises encouraged by the state refer to enterprises that meet the conditions specified in the "Announcement of the Ministry of Industry and Information Technology, National Development and Reform Commission, Ministry of Finance, and State Administration of Taxation of the People's Republic of China (2021 No. 9)" . If there is any update, the regulations will follow.

3. The industrial mother machine enterprises mentioned in Article 1 refer to enterprises that produce and sell products that comply with the "Basic Standards for Advanced Industrial Mother Machine Products" attached to this announcement. The specific applicable conditions and enterprise list shall be determined by the Ministry of Industry and Information Technology in conjunction with the National Development and Reform Commission and the Ministry of Finance. , the State Administration of Taxation and other departments.

4. Other policy standards and management requirements for enterprises to enjoy the super deduction policy for research and development expenses are in accordance with the "Notice of the Ministry of Finance, State Administration of Taxation and the Ministry of Science and Technology on Improving the Pre-tax Super Deduction Policy for Research and Development Expenses" (Caishui [2015] No. 119), The relevant provisions of documents such as the "Notice of the Ministry of Finance, State Administration of Taxation and the Ministry of Science and Technology on Policy Issues Concerning the Pre-tax Super Deduction of Overseas Research and Development Expenses Entrusted by Enterprises" (Finance and Taxation [2018] No. 64) shall be implemented.

5. If the tax preferential policies stipulated in this announcement adopt list management, the National Development and Reform Commission and the Ministry of Industry and Information Technology shall provide the Ministry of Finance and the State Administration of Taxation with a list of enterprises that can enjoy preferential treatment in the previous year before the end of March each year in accordance with regulations; If list management is not adopted, the tax authorities may follow the "Announcement of the Ministry of Finance, State Administration of Taxation, Development and Reform Commission, Ministry of Industry and Information Technology on Corporate Income Tax Policies on Promoting the High-Quality Development of the Integrated Circuit Industry and Software Industry" (Ministry of Finance, State Administration of Taxation, Development and Reform Commission, Ministry of Industry and Information Technology) The verification mechanism stipulated in the Ministry of Information Technology Announcement No. 45 of 2020) is transferred to the development and reform, industry and information technology departments for verification.

Special announcement.

Ministry of Finance

State Administration of Taxation

National Development and Reform Commission

Ministry of Industry and Information Technology

September 12, 2023

This article is edited and selected from the " Official Website of the Ministry of Finance", edited by Zhitong Finance: Xu Wenqiang.