The R&D expenses of an industrial automation design company are collected

Monthly income of the company is about 600,000 yuan, and the company is mainly engaged in software and hardware design. Since it is an agency bookkeeping company that is responsible for accounting processing, there is no separate collection of R&D expenses. After signing a consulting service agreement with DOBA in August 2020, DOBA guided the company to complete a reasonable collection of research and development expenses from January to July 2020 based on the situation of the company.

The main method recommended for the company is as below: A. Set up a R&D department within the company, assign the company’s executives and core technical teams engaged in R&D to the R&D department; B. Guide the company to complete the project report and initiate the R&D project. C. Instruct the accountant responsible for the company's bookkeeping to establish a ledger for R&D expenses, collect wages, depreciation of R&D equipment, and used R&D materials, and at the same time, set up sub-subjects R&D expenses under the management expense account for accounting (The company adopts the "Small Sized Accounting System").

Relevant regulations: additional deduction for R&D expenses (Announcement No. 23 of 2018 of the State Administration of Taxation), additional 75% deduction for research and development expenses from 2018 to 2020. If an intangible asset is formed, it shall be amortized before tax at 175% of the cost of the intangible asset during the aforementioned period.

2 / F, Xinpeng building,

No. 200, Lane 91, Eshan Road,

Pudong New Area, Shanghai

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