Offsetting the taxable incomes with research and development expenses is a preferential policy for stimulating the independent innovation of enterprises.
Since the publishing of the Authentification and Management Method for?R&D Projects of Enterprises in Ningxia Hui Autonomous Region in 2010, the Science and Technology Department of Ningxia and other relevant departments have further carried out this policy and made great achievements.
By the end of 2014, the number of enterprises benefiting from this preferential policy has increased from 29 in 2010 to 63. From 2010 to 2014, the total research and development expenses used to offset taxable incomes were 1.07 billion yuan (with 0.129 billion yuan in 2010, 0.215 billion yuan in 2011, 0.203 billion yuan in 2012, 0.265 billion yuan in 2013 and 0.253 billion yuan in 2014). There have been 3.198 billion yuan of R&D expenses being free of 0.499 yuan of tax, which provides enterprises enough fund for researching and developing new products.
In the future, this policy will benefit more enterprises. In 2010, its biggest beneficiary is corporations manufacturing mining machines, chemicals and monosodium glutamate. Since 2014, some emerging industries, such as enterprises in tinsel making, solar energy device manufacturing software developing and rare metals smelting, have started to benefit from this policy.
