April 27, 2018 Source: Sharp Technology

The State Council executive meeting held on April 25 decided to further clarify a series of tax incentives and reduce tax cuts on reducing the cost of entrepreneurial innovation. For example, the company will enjoy the one-time pre-tax deduction of the company's new purchase of research and development equipment, equipment unit value ceiling, from 1 million yuan to 5 million yuan; high-tech enterprises and technology-based SMEs carry-over years from 5 years Extended to 10 years.

Accelerating the construction of an innovative country is an inevitable requirement for transforming the mode of economic development and transforming the driving force for economic growth, and is also an important measure for building a modern economic system. According to the latest statistics of the State Administration of Taxation, in the first quarter, the tax authorities implemented a total tax reduction of 90.4 billion yuan in various tax incentives to support the development of high-tech enterprises, a year-on-year increase of 61.4%.

Since the 18th National Congress of the Communist Party of China, China has initially formed a policy of protecting and stimulating innovative taxation policies based on corporate income tax concessions, which has comprehensively and benefited a wide range of benefits, effectively reducing tax burdens, enhancing cash flow, and providing good corporate innovation. External motivation," said Li Xuhong, director of the Institute of Finance and Taxation and Applications at the Beijing National Accounting Institute.

Tax reduction and reduction will stimulate innovation

Zhejiang Huzhou Jiage Electronic Technology Co., Ltd. is a high-tech enterprise mainly engaged in the production of embedded software products. Its main products are infrared multi-touch software. The company enjoys preferential policies such as the VAT of the software products, the tax refund, the 15% reduction of the enterprise income tax high-tech enterprises, and the deduction of the research and development expenses of the small and medium-sized enterprises.

“Since 2011, our company has enjoyed preferential policies for the deduction of corporate income tax R&D expenses. With the support of tax incentives, the research and development of software products has been increasing in recent years. Last year, we invested a total of 344 in research and development. Ten thousand yuan, after enjoying the deduction policy, a total of 6.02 million research and development expenses deduction, so that we have more financial strength to invest in the next step of technology research and development production." Jia Fanghong financial director Tao Fanghong said.

Since the beginning of this year, a series of decision-making arrangements by the Party Central Committee and the State Council on tax reduction and reduction have been effectively implemented, which has effectively stimulated the vitality of market entities in innovation and entrepreneurship and boosted the high-quality development of the economy.

"Tax incentives include both tax reductions and tax deductions, as well as indirect reductions in tax costs, accelerated depreciation, deferred taxation, etc., in line with international practice. From the perspective of policy effects, some policies can be reduced on a timely basis. Enterprise burden, enhance corporate cash flow, and achieve immediate results; some policies can play a guiding role in leading social innovation, to achieve macro-control purposes." Li Xuhong said.

Build a comprehensive tax incentive system

At present, the protection and incentives for innovative tax incentives are comprehensive and beneficial. "The combination of general-purpose and preferential policies is highly targeted, creating a positive social atmosphere for innovation, innovation and innovation in key industries and fields." Li Xuhong said.

China encourages science and technology innovation tax policy system, which mainly includes reducing the tax burden of high-tech enterprises, encouraging investment in research and development, encouraging investment in research and development equipment, and encouraging the transformation of scientific and technological achievements. For example, for high-tech enterprises that need to be supported by the state, the enterprise income tax shall be levied at a reduced rate of 15%; the research and development expenses incurred by the enterprise for the development of new technologies, new products and new processes shall not be included in the current profits and losses of the intangible assets. On the basis of actual deduction, 50% of research and development expenses are deducted before income tax.

At the same time, for the software and integrated circuit industry and technologically advanced service outsourcing enterprises that are important for leading the development of the new economy, special preferential policies such as value-added tax and corporate income tax have also been implemented to actively support the rapid development of strategic emerging industries. "For example, the higher the level of integrated circuit technology, the longer the tax exemption period can be obtained. In addition to tax exemption, it can be reduced by half or given a preferential tax rate of 15% or 10%." Li Xuhong said.

In addition to corporate income tax concessions, integrated circuit companies have a tax incentive in the value-added tax field that is quite competitive compared to other industries, that is, VAT is allowed to be refunded. "The so-called tax refund, that is, when the VAT input tax generated by the purchase cost is greater than the sales tax generated by the sales of the product, the difference is refunded." Li Xuhong explained.

According to the State Council executive meeting held recently, three VAT reform measures will be implemented from May 1st, which will also benefit many technology companies. One of the three measures is to raise the VAT small-scale taxpayer standard to 5 million yuan, and allow enterprises that have already registered as general taxpayers to be registered as small-scale taxpayers within a certain period of time. This is a major benefit for many small and medium-sized technology companies.

Fujian Chuangzhi Huida Information Technology Co., Ltd., with a sales income of more than 1.24 million yuan last year, has exceeded the standard of taxpayers in accordance with current policies. "The company is mainly engaged in the development and sales of software products. After it is recognized as a general taxpayer according to the current regulations, because the input deduction is very small, the overall tax burden will directly approach 17%. If you choose to maintain the status of small-scale taxpayers according to the new national policy, We can continue to implement the 3% levy rate, reduce the tax amount by about 14%, and save the tax rate by more than 80%. The company can invest the saved funds in the research and development and promotion of new products and new technologies." Lin Yongjie, the company's head .

Increase innovation incentives for researchers

“While promoting the independent innovation demonstration zone, the state continues to increase incentives for innovation of researchers.” Li Xuhong said. For example, on the basis of the original state-level, provincial-level and international organizations' exemption of individual income tax policies for scientific and technological personnel awarded by science and technology personnel, scientific research institutions and institutions of higher learning have successively introduced the transfer of scientific and technological achievements to the company in the form of shares or shares. For individual rewards, the winner can postpone the payment of personal income tax.

Increasing policy incentives for the transformation of scientific and technological achievements will help stimulate innovation, enhance economic competitiveness, and promote people's livelihood improvement. A few days ago, the State Council executive meeting decided to give tax incentives to cash rewards for the transformation of job-related scientific and technological achievements while implementing the preferential tax deferral tax policy for scientific and technological personnel.

The new regulations clarify that the scientific and technological personnel of non-profit scientific research institutions, universities and other institutions approved by law shall adopt the transfer and license of patent innovations such as patent technology, computer software copyright and new biomedical products created by scientific research and technology development. In the case of transformation of results, the cash awards issued within 3 years after the relevant units have obtained the conversion income shall be included in the personal income tax of the personal salary of the scientific and technical personnel in the month, reduce the tax burden, and accelerate the transformation of scientific and technological achievements.

“The transformation of scientific and technological achievements into personal income tax policies is related to the vital interests of the majority of scientific researchers. Previously, the cash rewards for the transfer of scientific and technological achievements and licenses were based on individual wages and salaries, which resulted in the actual gains of scientific research personnel. Policy, the actual tax burden will be greatly reduced, fully reflecting the state's emphasis on promoting the transformation of scientific and technological achievements." Chen Boqiang, deputy director of the Technology Transfer Center of Beijing Institute of Technology, said that the implementation of this policy will help mobilize the enthusiasm of researchers and promote scientific and technological achievements. Conversion speed up.

Li Xuhong said that from the perspective of practice, the tax incentives for promoting entrepreneurial innovation have further room for optimization and strengthening, which will be gradually resolved in the future tax reform and adjustment.