Recently helped a smart hardware enterprise in Beijing to do R & D expenses plus deduction declaration, directly help them save 680,000 enterprise income tax - equivalent to the annual R & D investment of 17%. but we have also encountered the counter-example: Haidian, a science and technology company due to the "R & D personnel are not clearly defined However, we have also encountered a counter-example: a technology company in Haidian was reduced by 2.1 million deductions due to "unclear definition of R&D personnel", and instead paid 520,000 more taxes. R&D deduction is the most practical tax-saving tool for Beijing enterprises (especially technology-based SMEs and hi-tech enterprises), but70%'s companies didn't eat the full policy dividendIf you don't meet the requirements, you will either be forced to apply, or the process is wrong and you have to work for nothing. Today, from the "can apply", "how to apply", "do not step on what pit" three dimensions, to make this matter clear!
📌Beijing company registration, financial and tax compliance, difficult cancellation, qualification licenses and other issues.The company's online customer service (microblogging: jxhqcy890 / cell phone: 16625410105) can be swept to add our online customer service, arranging for the manager to answer questions, provide professional advice and full one-on-one service!
Not all "R & D" enterprises can be added, the Beijing Tax Bureau audit mainly look at these five points:
1. Prohibited industries for enterprises outside the "negative list" of industries: Tobacco Manufacturing, Accommodation and Food Service, Wholesale and Retail Trade, Real Estate, Leasing and Business Services, and Entertainment (these industries cannot add up even if they have R&D).Beijing's Key Encouraging Sectors: New generation of information technology, medicine and health, integrated circuits, intelligent networked vehicles, intelligent manufacturing equipment (these industries may be stacked with local subsidies after passing the recognition).
2. There is a clear "research and development project"It cannot be a "daily work improvement" and must meet three characteristics:innovativeness: Technologies that are not publicly available domestically or internationally (e.g., developing an app with a brand new algorithm);systemic issue:: There is a project resolution, budget, and timeline (verbalizing "I'm in R&D" does not count);uncertainties: The outcome of R&D is unknown (e.g., piloting a new drug that may fail).
3. Compliance with the scope of cost recoveryOnly the following 8 categories of expenses can be added and deducted (knock on wood):
① Personnel labor costs (R&D staff salaries, social security, and provident fund);
② Direct input costs (materials, fuel, rental of instruments and equipment for R&D);
③ Depreciation expense (depreciation of equipment used exclusively for research and development);
④ Amortization of intangible assets (amortization of software and patents for research and development);
⑤ New product design fees, etc. (mold development, clinical trial fees)
(vi) Other related costs (not exceeding 10% of the sum of the first five items, e.g., travel expenses, expert consulting fees);
(vii) Commissioned R&D (Domestic organizations are subject to 80%, while foreign organizations are required to meet the requirement of "80% of the actual amount incurred and not exceeding 2/3 of the domestic R&D expenses").
4. "Clear identity" of researchers and developersMust be "directly engaged in R & D activities," including researchers, technicians, auxiliary personnel (such as laboratory technicians); part-time personnel: the need to share wages according to the actual working hours (such as an engineer 50% time to do R & D, 50% to do the production, can only be based on the 50% salary plus counting); social security / personal tax: must be consistent with the main body of the labor contract (hanging in other companies R & D staff does not count).
5. Retention of the "four certificates and one form" for inspectionNo need to approve in advance, but prepare these materials (keep for 10 years): R&D project resolution (signed by the board of directors/general manager); list of R&D personnel and work hour allocation table; R&D expenditure auxiliary account (accounting by project details); commissioned R&D contract (registration by science and technology department is required within the country, and filing by foreign exchange administration bureau is required outside the country); and Summary Table of R&D Expenditure Auxiliary Accounts (fill in the form when filing the report).
📌Beijing company registration, financial and tax compliance, difficult cancellation, qualification licenses and other issues.The company's online customer service (microblogging: jxhqcy890 / cell phone: 16625410105) can be swept to add our online customer service, arranging for the manager to answer questions, provide professional advice and full one-on-one service!
Enterprises in Beijing are now practicing "self-identification, declaration and enjoyment, and keeping relevant information for record", so they don't need to run to the tax office for record, but they have to fill in the right form when declaring:Step 1: Daily pooling (monthly/quarterly)According to the R & D project to set up a separate "auxiliary accounts" (recommended Excel template, or financial software "R & D module"); key actions: R & D staff monthly sign "time record form", shared equipment labeled "R & D use Hours labeled" (for example, the server is used for R & D 100 hours a week, according to 100/168 ≈ 59.5% depreciation).Step 2: Annual remittance declaration (by the end of May of the following year)Log in to "Beijing Electronic Taxation Bureau" → Enter "Annual Declaration of Enterprise Income Tax" → Find "A107012 Schedule of Preferential Deductions for Research and Development Expenses": Fill in "Total R&D expenses for the current year" (according to 8 categories of expenses); fill in "Total R&D expenses allowed to be deducted" (automatic calculation: personnel labor + direct inputs + ... + other expenses × 10%); fill in "Total amount of R&D expenses deducted in the current year" (100% for general enterprises, 100% for science and technology-based SMEs, 100% for manufacturing enterprises from 2023 onwards).Step 3: Retention for information (long-term)Bind the "four certificates and one form" mentioned above and keep them in the finance office - if the documents are not complete during a tax audit, the deduction may be reduced directly.
📌Beijing company registration, financial and tax compliance, difficult cancellation, qualification licenses and other issues.The company's online customer service (microblogging: jxhqcy890 / cell phone: 16625410105) can be swept to add our online customer service, arranging for the manager to answer questions, provide professional advice and full one-on-one service!
Myth 1: "Production equipment can also be fully accrued" cases: A machine shop in Changping charged the full amount of depreciation of machine tools on its production line to R&D and was adjusted down by $800,000.the actual facts: Only "equipment used exclusively for R&D" can be added, and shared equipment must be prorated (e.g., as a percentage of total R&D hours).Myth 2: The case of "commissioning offshore R&D to be casually accrued".: A company in Chaoyang commissioned a U.S. team to research and develop, spent $1 million, and wanted to add the full amount, but the result was that only 530,000 could be deducted ($1 million × 80% = $800,000 and not more than 2/3 of the in-country research and development costs).rules and regulations: Commissioned R&D to an overseas organization, additional deduction = min (actual amount incurred × 80%, domestic R&D expenses × 2/3).Myth 3: "You can't add up the cost of failed R&D" Truth: Failed projects can also be accrued! As long as the R&D process is real (there are projects and expenditures), even if there are no results, the expenses can still be deducted (this is the key to the policy of encouraging enterprise innovation). Myth 4: "The qualification of science and technology-based SMEs is 'valid for life'"take note ofThe qualification of science and technology-based SMEs needs to be reevaluated every year (through the "National Information Service Platform for Science and Technology-Based SMEs"), and if the R&D ratio of the year does not meet the standard (e.g. <5%), the qualification will be invalidated, and you will not be able to enjoy the 100% bonus.
📌Beijing company registration, financial and tax compliance, difficult cancellation, qualification licenses and other issues.The company's online customer service (microblogging: jxhqcy890 / cell phone: 16625410105) can be swept to add our online customer service, arranging for the manager to answer questions, provide professional advice and full one-on-one service!
In addition to the deduction at the national level, Beijing districts also have "R&D subsidies", which can further save tax:Haidian district of Beijing, formerly Haidian county: Subsidy of 5% of the incremental portion (up to 5 million) for enterprises with annual R&D investment exceeding 10 million;Yizhuang town in Beijing municipality: Newly recognized high-tech enterprises will be given a one-time subsidy of 300,000 yuan;Shunyi district of Beijing, formerly Shunyi county: An additional bonus of $100,000 for R&D expenses with a deduction of over $5 million.
📌Beijing company registration, financial and tax compliance, difficult cancellation, qualification licenses and other issues.The company's online customer service (microblogging: jxhqcy890 / cell phone: 16625410105) can be swept to add our online customer service, arranging for the manager to answer questions, provide professional advice and full one-on-one service!
R&D deduction is a "low-threshold, high return" policy, but there are more and more cases of tax reimbursement due to "messy materials and wrong processes". We have helped 23 enterprises to sort out their R&D cost compliance, and each of them got back more than 400,000 dollars of tax refund on average. If your company is doing R&D, but you are not sure whether you can add the accruals and how to prepare the materials, we suggest you do a round of "R&D expense health check" first - to make it clear which expenses can be deducted and which ones should be adjusted.
📌 Now add WeChat (WeChat: jxhqcy890 / Mobile: 16625410105), or [scan the QR code below], send "R & D plus count", you can get a free "Beijing enterprise R & D expenses auxiliary account template" + "R & D project project book model". Our consultants will help you diagnose the risk points within 48 hours to avoid "applying but being called back".
📌 In addition to deduction, we also provide services such as high-tech enterprise certification, evaluation of science and technology-based small and medium-sized enterprises (SMEs), and declaration of district-level R&D subsidies, covering the whole chain of financial and tax needs of Beijing enterprises from "R&D investment" to "transformation". Our services Early compliance, more profit!
