Elementary Analysis On The Reasonable Allocation Of Research And Development Experses Among Affiliated Enterprises

As a strategic support to improve the social productive forces and thecomprehensive national strength, Science and technology innovation has been placed tothe core position in the global development of the country. But all the time since theproblems such as the complicated system of laws and regulations, the incompleterelevant provisions, the great geographical differences and especially the absence ofclear and specific standards for R&D expenses apportionment between affiliatedenterprises have brought great risk of tax and tax dispute. It also makes a negativeimpact on R&D of enterprises and the administration of tax departments. How toevaluate the rationality between affiliated enterprise of R&D costs, to put it understandardized management, and to effectively prevent the occurrence of disputes? It nowhas become a question for us to consider and solve.This paper aims to sum up the cost allocation standards and requirements bysorting out the R&D expenses deducted and the provisions of the law for theassociation between enterprises. It also illustrates the reasonable allocation betweenaffiliated enterprise R&D expenses with a complete example. At the same time thispaper tries to put forward a method of evaluation of R&D expense and to givesuggestion on effectively prevention of the share dispute. This topic research can helpenterprises and especially the affiliated enterprises reasonably allocate the concentratedR&D expenses according to their own production and operation status anddevelopment conditions in the existing framework of tax law, accepting by the taxdepartments and avoiding tax dispute. This paper may also provide some idea to furtherimprove the laws on enterprise R&D expenses deducted and implementation standards.