As we all know, the government is now encouraging enterprises to conduct independent research and development. In order to intensify the efforts, the government is currently deducting an unprecedented proportion of research and development expenses175%. This is undoubtedly a good news for the majority of enterprises with research and development intentions. However, it should be noted that not all R&D expenses are deductible, and some R&D expenses are not100%Adding and deducting.

For example, the expenses incurred when the enterprise entrusts domestic external institutions or individuals to conduct research and development activities shall be in accordance with the actual amount of the expenses incurred80%Enter into the client's research and development expenses and calculate additional deductions.

The expenses incurred by entrusting overseas institutions to conduct research and development activities shall not only be in accordance with the actual amount of expenses80%The part included in the entrusting party's overseas research and development expenses and which does not exceed two-thirds of the qualified domestic research and development expenses may be added and deducted before the enterprise income tax in accordance with regulations. The excess part shall not be added and deducted.

For exampleACompany entrusted domesticBThe company conducts research and development, and has incurred research and development expenses in this year100WThen this yearAThe total research and development expenses can only be deducted when the company calculates the corporate income tax100*80%*175%=140W.

And if this100WBelong toAThe total deductible amount for R&D expenses incurred by the company itself is100*175%=175W

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