In order to further encourage research and development innovation in enterprises and promote the high-quality development of the integrated circuit industry and industrial host industry, the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission, and the Ministry of Industry and Information Technology jointly issued the "Announcement on Increasing the Deductible Proportion of R&D Expenses for Integrated Circuit and Industrial Host Enterprises."
The announcement points out that for integrated circuit enterprises and industrial host enterprises, the actual R&D expenses incurred in R&D activities that have not formed intangible assets and are not included in the current period's income and expenses, after deducting according to regulations, can be further deducted at 120% of the actual amount incurred before tax from January 1, 2023, to December 31, 2027. For expenses that have formed intangible assets, they can be amortized before tax at 220% of the cost of intangible assets during the aforementioned period.