Legal basis: Announcement of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Further Improving the Pre-tax Deduction Policy for R&D Expenses (Announcement of State Taxation Administration of The People's Republic of China of the Ministry of Finance 13) 1. If the R&D expenses actually incurred by manufacturing enterprises in R&D activities do not form intangible assets and are included in the current profits and losses, they shall be deducted according to regulations, and reduced from 202 1 to 1. Where intangible assets are formed, they shall be amortized before tax from 202 1 1 according to 200% of the cost of intangible assets.
The manufacturing enterprises mentioned in this article refer to enterprises whose main business is manufacturing in the year when they enjoy preferential treatment and whose main business income accounts for more than 50% of the total income. The scope of manufacturing industry is classified according to the national economy industry (GB/T? 4754-20 17), if the relevant state departments update the national economic industry classification, their provisions shall prevail. The total income shall be implemented in accordance with the provisions of Article 6 of the Enterprise Income Tax Law.