The Proportion Of Pre Tax Deduction For R & D Expenses Of Manufacturing Enterprises Will Be Increased To 100%

Recently, the Ministry of Finance and the State Administration of Taxation issued the announcement on further improving the pre Tax Deduction Policy of R & D expenses, aiming to further encourage enterprises to increase R & D investment and support scientific and technological innovation. As soon as the new deal was issued, it immediately aroused widespread concern and positive repercussions in the textile industry.

The "government work report" of the NPC and CPPCC this year clearly stated that "we will continue to implement the policy of 75% additional deduction for R & D expenses of enterprises, increase the proportion of additional deduction of manufacturing enterprises to 100%, encourage enterprises to increase R & D investment with preferential tax mechanism, and strive to promote enterprises to lead development with innovation". The announcement on further improving the pre Tax Deduction Policy of R & D expenses released this time makes this preferential policy come into effect in time, which makes the market subjects enjoying the preferential policy continuously expand, the scope of R & D expenses continues to expand, the deduction proportion continues to increase, and the application review procedure is continuously simplified, It is conducive to further promoting more capital flow into the field of scientific and technological innovation and achievement transformation, and promoting industrial upgrading.

In view of the problems related to the pre Tax Deduction Policy for R & D expenses of enterprises, the announcement clearly states that if the R & D expenses actually incurred in the R & D activities of manufacturing enterprises do not form intangible assets and are included in the current profits and losses, on the basis of deduction according to the regulations, 100% of the actual amount will be deducted before tax from January 1, 2021; If intangible assets are formed, they shall be amortized before tax at 200% of the cost of intangible assets from January 1, 2021. The manufacturing enterprises mentioned in the announcement refer to those enterprises whose main business is manufacturing business and enjoy preferential treatment. The proportion of the main business income in the current year accounts for more than 50% of the total revenue.

In recent years, the textile industry has made remarkable achievements in increasing technological progress. Textile Science and technology innovation has entered a new stage of coexistence of "following, running and leading". The government continued to increase the deduction of R & D expenses, which effectively stimulated the R & D investment and innovation vitality of textile enterprises.

Shen Fangyong, deputy to the National People's Congress and chairman of Hubei Tianmen Textile Machinery Co., Ltd., said that using tax preferential mechanism to encourage enterprises to increase R & D investment, and strive to promote enterprises to lead development with innovation, these positive policies will have a greater role in promoting the innovation ability and professional level of small and medium-sized enterprises. The continuous increase in the amount of deduction indicates that the Party Central Committee, the State Council and relevant departments attach great importance to enterprise innovation, and also shows the high importance of enterprise innovation. The introduction of this new policy is not only a support for enterprises, but also an inspiration. Therefore, we should put enterprise innovation in the first place, do a good job, and get good results.

Chen Lifen, deputy to the National People's Congress and Secretary of the Party committee of Jiangsu Sunshine Group, said that the state has increased support for the manufacturing industry in R & D, making sunshine full of confidence in further achieving high-quality development. She pointed out that in order to make products recognized in the domestic and foreign markets and constantly improve new competitive advantages, it is necessary to persevere in innovative research and development, and constantly improve the competitiveness of products. At the end of last year, Jiangsu Sunshine Group's "intelligent textile workshop" and "clothing intelligent workshop" were both selected into the list of Jiangsu Province's demonstration intelligent workshops in 2020. In two years, they spent more than 200 million yuan to build "intelligent workshops" and make efforts for intelligent transformation and upgrading“ In the next step, sunshine should speed up the progress, increase investment, make full use of information technology to carry out intelligent transformation and digital transformation of enterprises, and build a new development pattern of domestic and international dual cycle mutual promotion. " Chen Lifen said.

Shao Changjin, deputy to the National People's Congress and chairman of Xinxiang Bailu Investment Group Co., Ltd., is very concerned about the introduction of this new policy. He said that during the two sessions this year, I was very excited when I heard the government work report that the proportion of R & D expenses plus deduction of manufacturing enterprises should be increased to 100%. This is the strong support of the state for the real economy, so that the traditional manufacturing industry can enjoy more real preferential tax policies, encourage enterprises to increase R & D investment, and have more confidence to lead the high-quality development of the industry driven by scientific and technological innovation. Shao Changjin said that egret group has always attached great importance to independent technology research and development. Even in 2020, which is greatly affected by the epidemic situation, the enterprise's R & D expenses will reach more than 96 million yuan. The continuous investment in research and development has provided financial support for the emergence of new functional fibers to meet people's health needs, such as antibacterial, mite repellent and Artemisia cleaning silk, and has contributed to the fight against the epidemic. Egret group dares to increase R & D investment against the trend, and also benefits from the "support" of tax preferential policy. After the implementation of the latest R & D expenses plus deduction policy this year, the burden on enterprises will be further reduced, and the R & D of new products of egret group will be accelerated and the transformation and upgrading will be accelerated.

At the beginning of this year, the group established egret New Material Research Institute and announced the egret carbon neutral vision. In the future, we will develop new fibers and new materials in the fields of green and recycling, and realize the functionalization and high-end of industrial textiles from the fiber level. The new policy has strengthened the confidence of Bailu people to continue to "increase" R & D investment, effectively stimulating the innovation momentum of enterprises. At the same time, the group's increased investment in research and development has also injected a "cardiotonic" into the enterprise's scientific and technological personnel, stimulated the innovative vitality of the scientific and technological personnel, which is conducive to the all-round training, introduction and utilization of talents, and helps the high-quality development of enterprises and industries.

Zhang Guocheng, President of Changzhou Textile Engineering Society and deputy general manager of Changzhou xurong knitting printing and dyeing Co., Ltd., said that the introduction of the new policy further demonstrates the country's strength and determination to encourage technological innovation and technological innovation in the first year of the 14th five year plan. Through the new measures of reducing the burden of tax policy and giving profits to enterprises, the government should actively guide enterprises to increase investment in R & D and strengthen their confidence in high-quality development. In the process of constantly innovating products and updating technologies, enterprises can maintain benign and sustainable development, improve their market competitiveness and enhance the irreplaceable products and technologies.

Zhang Guocheng mentioned that xurong is currently committed to the intelligent improvement of sports fabric products, especially the research and development of new functional products - environmental friendly nylon fabrics. The continuous adjustment and optimization of tax policies can reduce the pressure on R & D costs and achieve the effect of "four, two and one thousand catties". Zhang Guocheng believes that compared with high-tech enterprises, textile and other manufacturing industries invest relatively low in R & D costs. The key role of this policy lies in the guidance and direction, which has realized the inclination from the inclusive deduction to the special deduction. In the first year of the 14th five year plan, it is a good time to introduce this new policy, which is conducive to driving enterprises to shift the focus of transformation and upgrading to product and technological innovation.

Xu Jianlin, general manager of Hebei Ningfang group, said that if the general reduction of tax rate is to increase profits for manufacturing enterprises, then the increase in the proportion of R & D expenses plus deduction is to guide manufacturing enterprises to "increase" R & D investment and realize transformation and upgrading. After the implementation of this new policy, Ningfang group can enjoy nearly ten million yuan of tax preference every year, which is a strong support for the enterprise's scientific and technological research and development. This year, Ningfang group will take advantage of this good policy, cooperate with universities and scientific research institutions to promote the establishment of Hebei provincial emergency protection textile material industry technology research institute and Hebei Green Textile Technology Innovation Center, and make new breakthroughs in the application and development of environmental protection pulp, reactive dyeing and soaping technology, and treatment of high concentration organic phosphorus wastewater, with more than 10 patent achievements, More than 3 scientific research achievements above the provincial and ministerial level have been applied for further promoting high-quality development with scientific and technological innovation.

Xu yaoqin, chairman of Jiangsu Haoye Fiber Technology Co., Ltd., said that the competition among enterprises is no longer the traditional simple competition of price and quality, but contains profound competition of product and technological innovation. Over the years, Haoye has been adhering to the investment in scientific and technological research and development. At present, Haoye is vigorously developing functional yarns, such as waterproof, oil proof and antifouling wool; We also focus on the research and development of conductive yarn, wormwood yarn and heating functional yarn. Xu yaoqin introduced that Haoye's three proofing wool is an innovative fiber. The research and development of this kind of wool will play a good role in improving the quality of industrial production and the quality of people's life.

She said that the proportion of R & D expenses plus deduction increased to 100%, which reduced the enterprise income tax base and the burden of enterprises, and guided enterprises to increase R & D efforts under the support of policies, promote the transformation and upgrading of enterprises through innovation, and enhance the endogenous power and development momentum of enterprises.

(source: China Textile News)