Expense

Category

Weighted Deduction of R&D Expenses

Recognition of High-Tech Enterprises

Accounting Rules

Remarks

Labour Expense

Wages and salaries, basic pension, basic medical insurance, unemployment insurance, work related injury insurance, maternity insurance and housing provident fund of the staff who are directly involved in R&D activities, and labour fees of external R&D personnel.

Wages and salaries, basic pension, basic medical insurance, unemployment insurance, work related injury insurance, maternity insurance and housing provident fund of science and technology personnel, and labour fees of external science and technology personnel.

Salaries, bones, allowances, subsidies, social insurance, and housing provident fund of existing employees who are directly involved in R&D activities, and labour fees of external R&D personnel.

Accounting calibre is larger than tax calibre. The labour expense classification object of the high-tech enterprises is science and technology personnel.

Direct Input Costs

(1) Material, fuel and power costs directly consumed by R&D activities

(1) Material, fuel and power costs directly consumed by R&D activities

(1) Material, fuel and power costs directly consumed by R&D activities

(2) Developing and manufacturing expenses of mould and process equipment for intermediate test and product trial production, the purchase cost of samples, prototypes and general test means that do not constitute fixed assets, and inspection fees for trial products.

(2) Developing and manufacturing expenses of mould and process equipment for intermediate test and product trial production, the purchase cost of samples, prototypes and general test means that do not constitute fixed assets, and inspection fees for trial products.

(2) Developing and manufacturing expenses of mould and process equipment for intermediate test and product trial production, the purchase cost of samples, prototypes and general test means and inspection fees for trial products.

(3) The operation and maintenance, adjustment, inspection, repair and other expenses of instruments and equipment used for R&D activities, as well as the lease fees of instruments and equipment used for R&D activities through operating lease.

(3) The operation and maintenance, adjustment, inspection, repair and other expenses of instruments and equipment used for R&D activities, as well as the lease fees of instruments and equipment used for R&D activities through operating lease.

(3) Rental fees for fixed assets such as instruments, equipment and houses used for R&D activities, equipment adjustment and inspection fees, as well as operation， maintenance and repair expenses of relevant fixed assets.

House rental fee is not included in the scope of weighted deduction.

Depreciation Expense and Long-Term Deferred Expenses

Depreciation of instruments and equipment used for R&D activities.

Depreciation of instruments, equipment and buildings in use for R&D activities. Long-term deferred expenses incurred in the process of reconstruction, modification, decoration and repair of R&D facilities.

Depreciation of fixed assets such as equipment, equipment, and rent used for R&D activities.

House depreciation expenses are not included in the weighted deduction scope.

Amortization of Intangible Assets

Amortization expenses for software, patent rights, non-patent technologies (including licenses, proprietary technologies, design and calculation methods, etc.) used for R&D activities.

Amortization expenses for software, patent rights, non-patent technologies (including licenses, proprietary technologies, design and calculation methods, etc.) used for R&D activities.

Amortization expenses for software, patent rights, non-patent technologies used for R&D activities.

Design Test and Other Expenses

New product design fee, new process specification formulation fee, clinical trial fee for new drug development, and field trial fee for exploration and development technology.

Qualifying design costs, equipment adjustment fees, testing fees (including clinical trial fee for new drug development, field trial fee for exploration and development technology, field test fees, etc.)

Other Related Expenses

Other expenses directly related to the R&D activities, such as technical books and materials fees; materials translation fees; expert consultation fees; high tech R&D insurance premium; expenses of retrieval, analysis, evaluation, demonstration, identification, evaluation, evaluation and acceptance check of R & D achievements; intellectual property application fees, registration fees, agency fees, travel expenses, conference fees, etc. The total amount of such expenses shall not exceed 10% of the total R & D expenses that can be deducted.

Other expenses directly related to the R&D activities, such as technical books and materials fees; materials translation fees; expert consultation fees; high tech R&D insurance premium; expenses of retrieval, analysis, evaluation, demonstration, identification, evaluation, evaluation and acceptance check of R & D achievements; intellectual property application fees, registration fees, agency fees, travel expenses, conference fees, communication fees, etc. The total amount of such expenses shall not exceed 20% of the total R & D expenses, unless otherwise specified.

Other expenses directly related to the R&D activities, such as technical books and materials fees; materials translation fees; conference fees, travel expenses, office expenses, foreign affairs expenses, training expenses for R&D personnel, experts consultation fees, high tech R&D insurance premium, etc. expenses of retrieval, analysis, evaluation, demonstration, identification, evaluation, evaluation and acceptance check of R & D achievements; intellectual property application fees, registration fees, agency fees.

In the weighted deduction policy and high-tech R&D scope, other related expenses are limited to a certain proportion.