Four departments issue a notice clarifying matters related to the preparation of the list of industrial mainframe enterprises eligible for R&D expense super deduction policy in 2025.

The Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, and the State Taxation Administration jointly issued the “Notice on Relevant Matters Concerning the Work of Formulating the List of Industrial Machine-Tool Enterprises Eligible to Enjoy the Additional Deduction Policy for Research and Development Expenses for 2025.”

It states that industrial machine-tool enterprises applying the additional deduction policy under the provisions of this Notice must simultaneously meet the following conditions: (1) industrial machine-tool enterprises that produce and sell advanced industrial machine-tool main units, key functional components, and CNC systems (hereinafter referred to as the advanced industrial machine-tool products, see the attachment “Basic Standards for Advanced Industrial Machine-Tool Products” of Announcement No. 44 of 2023 of the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission, and the Ministry of Industry and Information Technology); (2) for the enterprise applying for the preferential policy, in 2025, the monthly average number of advanced industrial machine-tool product research and development personnel with an employment contract or dispatched/engaged labor relationship, as a proportion of the enterprise’s monthly average total number of employees, is not less than 15%; (3) for the enterprise applying for the preferential policy, in 2025, the total amount of research and development expenses as a proportion of the enterprise’s total sales (operating) revenue (the sum of main business revenue and other business revenue) is not less than 5%; (4) for the enterprise applying for the preferential policy, in 2025, the revenue from producing and selling the advanced industrial machine-tool products specified in this Notice as a proportion of the enterprise’s total sales (operating) revenue is not less than 60%, and the enterprise’s total revenue is not less than 30 million yuan (including).