Times weekly reporter Xie Zhongxiu from Guangzhou
The benefits of reducing taxes and falling down further fall.
On September 20, the Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology jointly issued the Notice on Increasing the Pre-tax Increase and Deduction Ratio of Research and Development Expenses (hereinafter referred to as the Notice).
"Notice" points out that if the actual R&D expenses incurred in the R&D activities of an enterprise are not included in the profits and losses of the current period, the intangible assets shall be deducted before tax according to 75% of the actual amount incurred during the period from January 1, 2008 to December 31, 2020 on the basis of the actual deduction according to the provisions; if the intangible assets are formed, they shall be deducted before tax. The period shall be amortized before tax according to 175% of the cost of intangible assets. The preferential policy is not applicable to enterprises in the "negative list" of tobacco manufacturing, accommodation and catering, wholesale and retail industries.
It is roughly estimated that the proportion of pre-tax deductions will increase from 50% to 75%. In 2018, the amount of deductions will be increased by 28.5 billion yuan for industrial enterprises above the scale and 53.1 billion yuan for high-tech enterprises. Jia Kang, former director of the Institute of Fiscal Sciences of the Ministry of Finance, said that the policy adjustment is now in the right direction, but according to international standards, there is still room for improvement in the proportion of R&D cost plus deduction and pre-tax amortization.
The new deal will raise HUAWEI's net profit by 7%.
Since the reform and opening up, China's R & D investment has been increasing. According to statistics, from 2001 to 2010, the annual growth rate is more than 20%, especially in 2012, R&D investment exceeded 1 trillion yuan. At present, the growth rate of R & D investment in China is about 10% per year.
According to statistics, China's R & D investment in 2017 was 123 times that of 1991. Most of them come from enterprises. Statistics from the Bureau of Statistics show that in 2017 China's R&D investment is 1.76 trillion yuan, of which about 1.37 trillion yuan comes from enterprise investment, enterprise R&D investment accounts for nearly 80% of the total investment. The deduction of R & D expenses will effectively relieve the pressure of enterprises.
Taking Huawei as an example, in 2017 Huawei's total revenue was 603.6 billion yuan, net profit was 47.455 billion yuan, R&D investment was 89.7 billion yuan, accounting for 14.86% of revenue. According to the previous policy, Huawei's R&D expenditure can be added and deducted at a 50% rate, with a tax deduction of 6.728 billion yuan. Following the new policy, Huawei will reduce taxes by an additional 3.364 billion yuan, with an expected net profit increase of 7%.
According to Chen Guo of Anxin Securities, the R&D cost deduction mainly affects the performance of enterprises or industries through two ways: on the one hand, the policy directly reduces the burden of income tax on enterprises, and promotes the profits of enterprises; on the other hand, the R&D cost deduction also reduces the actual cost of R&D activities of enterprises. And encourage enterprises to engage in more research, in the long run to enhance the competitiveness of enterprises and industry technology-intensive, in this policy favorable circumstances, the total A excluding financial plus deduction on net profit of about 1.74%, the maximum increase in GEM net profit of 2.25%, from the industry point of view, deduction on net profit The main industries with higher profit margins were technology growth industries, of which the top five beneficiaries were military industry (9.80%), communications (6.64%), computers (3.72%), machinery and equipment (3.17%) and architectural decoration (2.97%).
Times Weekly reporter combed found that China's enterprise R&D expenses deduction originated in 1996, initially only applicable to state-owned, collective enterprises, and then gradually expanded to all enterprises, and determined the 50% of the proportion of deduction, 150% of the proportion of pre-tax amortization policy provisions. In 2017, the Notice on Increasing the Proportion of Pre-tax Increase and Deduction of Research and Development Expenses for Small and Medium-sized Technological Enterprises (SMEs) provides for 75% Increase and Deduction and 175% Pre-tax Amortization for SMEs. This is an expansion of 75% deduction, pre tax amortization ratio of 175% to all enterprises.
According to the current policy, the R&D activities undertaken by enterprises in order to acquire new scientific and technological knowledge, innovatively apply new scientific and technological knowledge, or substantially improve technology, products (services) and processes can enjoy the policy preferences of plus deduction according to regulations, including personnel labor costs, depreciation costs and intangible assets. Amortization, new product design costs, and materials, fuel, equipment and other direct input costs and other related costs. However, the additional deduction of R&D fees requires preferential filing with the Ministry of Science and Technology before the annual tax declaration and preparation of the required project information, project costs and other information.
Policy implementation is being tested
In order to encourage enterprises to increase R&D investment and support technological innovation, China's financial support has been increasing. Statistics show that in 2017, China's R&D expenditure was 1760.6 billion yuan, the input intensity (R&D expenditure to GDP ratio) was 2.13%, showing a continuous growth trend. In terms of financial support for enterprises'scientific research and development, the policy of adding and deducting R&D expenditure in 2017 has already reduced and exempted 57 billion yuan of tax for industrial enterprises above the scale, 106.2 billion yuan for high-tech enterprises, and 119.3 million enterprises have been selected into the list of small and medium-sized enterprises of science and technology, which can enjoy 75% of R&D expenditure. Additional deduction and 175% proportional pre tax amortization, as well as other related policy support.
However, some problems have been found in the implementation of the R&D fee plus deduction policy, such as the difficulty in identifying R&D activities, the difficulty in collecting R&D fees and the difficulty in verifying the authenticity.
Lin Jiang, director of the Department of Finance and Taxation, Lingnan College, Sun Yat-sen University, suggested: "First of all, in the definition of R&D activities, the state needs to have more clear and clear provisions, such as the purchase of a device, which must be for original R&D in order to be counted as R&D investment, while other enterprises can be classified as being positive. Second, there may be certain differences in the support attitude of enterprises'R&D activities, such as preferential treatment for original and creative R&D, guiding more enterprises to carry out original and innovative R&D; thirdly, for the identification of enterprise R&D activities, R&D projects can be recognized. To simplify the process, it will be more convenient for enterprises to use R&D expenditure plus Deduction Policy incentives; in addition, the staffing of project identification can also be optimized, the current R&D projects need to be approved by the Ministry of Science and Technology, but whether different areas of the project can be equipped with different professionals into different fields. OK, it is better to control the project as a research and development project. "
It is understood that the Notice on Improving the Policy of Pre-tax Increase and Deduction of R&D Expenses has also made a requirement that enterprises do not add and deduct the unclear division of R&D Expenses and production and operation Expenses, and that the tax authorities should conduct annual verification at a rate not less than 20% each year to ensure the excellence of the policy of adding and deduction of R&D Expenses. Hui Zhen helps to encourage enterprises to research and develop.
The proportion can be further improved.
At the same time, we should also see that the preferential policies for the deduction of R & D expenses are limited.
According to the National Federation of Industry and Commerce's "2008 China's Private Enterprises 500 Emphasis Research and Analysis Report," Huawei's total tax payment in 2017 was 71 billion yuan. Based on this data, Huawei's annual tax cuts account for only about 5% of its total tax revenue, even if the R&D cost plus deduction ratio rises by 25%.
Lin Jiang analysis said: "R&D costs plus deductions can really reduce the pressure on some enterprises'R&D investment. But big companies are not necessarily so tax-sensitive. For companies like Huawei, the benefits of R&D investment and the advantages of competition are far greater than the benefits of tax deductions. Whether this policy does not affect its investment in R & D. However, the state has given this policy to increase the proportion of R&D expenditure plus deduction from small and medium-sized technology-based enterprises to all enterprises, especially large-scale industrial enterprises and high-tech enterprises with large R&D expenditure. This policy reflects the state's attitude and shows that the State encourages and supports R&D investment and is a government. Policy orientation.
Jia Kang's previous analysis believed that China's current tax and tax categories have been basically sound, the possibility of reducing the burden of enterprises from tax cuts is small. At present, the value-added tax rate has been adjusted from 17% and 11% to 16% and 10% respectively. The half-levy of income tax on small profit-making enterprises has also been expanded. High-tech enterprises also have their own preferential tax rates. Jia Kang suggested that enterprises can make good use of the preferential policies of R&D fee plus deduction, and the state can also increase tax reduction, such as the proportion of pre-tax amortization can be increased to 200% to 250%.
In addition, the Times Weekly reporter combed China's scientific research support policy since the reform and opening up, and found that China's policy is moving from simple financial support to a more comprehensive business environment, from simplifying government and reducing taxes and burdens and other aspects of promotion, and the introduction of the main body is even worse. Alienation and targeted policies. According to statistics, since this year, in order to promote entrepreneurship, innovation, transformation and upgrading of the real economy and enhance social creativity, the state has promulgated a reduction in VAT tax rates, an expansion of VAT credits and tax rebates, a relaxation of the standard for small profit enterprises that enjoy the preferential half-levy of enterprise income tax, and a unit price of 5 million yuan. A series of measures, such as one-off pre-tax deduction for newly purchased equipment and appliances, cancellation of the restrictions on the addition and deduction of commissioned overseas R&D expenses, etc.
Lin Jiang proposed that besides tax incentives, enterprises also need a good business environment, including whether the local policy environment is conducive to the development of enterprises, whether there are restrictions on their own development, and whether it is fair, whether small and medium-sized enterprises, private enterprises and large enterprises, state-owned enterprises enjoy a relatively fair development environment. And whether there is a perfect system to encourage enterprises to carry out scientific research.
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