Core Viewpoint - The article discusses the tax incentives and policies implemented by the Chinese government to support the development of the manufacturing industry, particularly focusing on R&D expense deductions and other tax relief measures for small-scale taxpayers and micro-enterprises [2][3][18]. Tax Incentives for R&D - Enterprises engaged in R&D activities can deduct 100% of their actual R&D expenses from taxable income starting from January 1, 2023, if these expenses do not form intangible assets [3] - For R&D expenses that result in intangible assets, companies can amortize these costs at 200% for tax purposes [3] - The policy is designed to be a long-term institutional arrangement [4] Eligibility and Conditions - Eligible enterprises must have sound accounting practices and accurately account for R&D expenses, excluding certain industries such as tobacco, accommodation, and real estate [2] - R&D activities must be systematic and aimed at acquiring new scientific knowledge or significantly improving technology, products, or processes [6] - Companies must maintain separate accounts for R&D and operational expenses to qualify for the deductions [6] External R&D Collaborations - Expenses incurred from outsourcing R&D activities can be included as 80% of the actual costs for tax deductions, with specific rules for overseas collaborations [7] - Joint R&D projects among companies allow each party to calculate deductions based on their actual expenses [8] Application and Documentation - Companies must submit their tax prepayment declarations in July and October, along with annual tax reconciliation [9] - Relevant documentation must be retained for verification purposes [10] - Applications can be processed through online and offline tax service platforms [11] Additional Tax Relief for Small Enterprises - Small-scale taxpayers and micro-enterprises are eligible for various tax reductions, including exemptions from certain taxes and reduced rates for others, effective from January 1, 2023, to December 31, 2027 [18][19] - These entities can benefit from a 50% reduction in several local taxes, including urban maintenance and construction tax, resource tax, and property tax [19][20]

Group 1 - The article discusses tax and fee incentives provided by the government to support the development of the manufacturing industry, particularly for small-scale taxpayers, small and micro enterprises, and individual businesses [3][4]. - The policy includes a halving of the "six taxes and two fees" for eligible entities, which encompasses resource tax (excluding water resource tax), urban maintenance and construction tax, property tax, urban land use tax, stamp duty (excluding securities transaction stamp duty), cultivated land occupation tax, education fee surcharge, and local education surcharge [4][6]. - The effective period for these incentives is from January 1, 2023, to December 31, 2027 [5]. Group 2 - Small and micro enterprises that meet specific criteria, such as an annual taxable income not exceeding 3 million yuan, a workforce of no more than 300 people, and total assets not exceeding 50 million yuan, are eligible for these tax benefits [6]. - The policy allows for the cumulative enjoyment of the "six taxes and two fees" incentives alongside other existing tax benefits [6][7]. - Taxpayers who have already paid relevant taxes before the policy announcement on August 2, 2023, can offset these against future tax liabilities or request refunds [7]. Group 3 - Taxpayers must declare their eligibility for these benefits at the time of tax obligation occurrence, and relevant documentation must be retained for verification [8][9]. - The application process for these incentives can be conducted through electronic tax offices or tax service halls, providing both online and offline options [10]. - The policy is based on the announcement from the Ministry of Finance and the State Taxation Administration regarding further support for small and micro enterprises and individual businesses [11].