The policy of increasing the pre tax deduction ratio of research and development expenses for corporate income tax has been extended to December 31, 2023
Sending agency: Ministry of Finance, State Administration of Taxation Delivery time: 2021-04-13
The Notice of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Science and Technology on Increasing the Pre tax Deduction Ratio for Research and Development Expenses (Caishui [2018] No. 99) stipulates that for R&D expenses actually incurred by enterprises during R&D activities that have not formed intangible assets and are not included in the current period's profit and loss, on the basis of actual deduction according to regulations, an additional deduction of 75% of the actual amount shall be made before tax from January 1, 2018 to December 31, 2020; For intangible assets formed, they shall be amortized before tax at 175% of the intangible asset cost during the above-mentioned period. According to the Announcement of the Ministry of Finance and the State Administration of Taxation on Extending the Implementation Period of Partial Tax Preferential Policies (Announcement No. 6 of 2021 of the Ministry of Finance and the State Administration of Taxation), the implementation period of the above policies has been extended until December 31, 2023.
