No matter the enterprise is a high-tech one or not, all enterprises can enjoy the preferential policy as long as they can calculate R&D costs accurately with sound financial accounting.

Personnel who engages in R&D activities as well as undertakes operational management can be regarded as R&D staff, however, their labour costs are required to be shared in a reasonable way based on the actual working hours.

At present, only enterprises in the “negative list” are not allowed to enjoy the additional deduction, including:

1. Tobacco industry;
2. Hotel and catering services;
3. Wholesale and retail trade;
4. Real estate industry;
5. Leasing and business service;
6. Entertainment;
7. Other industries stipulated by Chinese Ministry of Finance and State Administration of Taxation.
   
   

According the Notice on Measures for Handling Preferential Policy of Enterprise Income Tax issued by State Taxation Administration in 2018, enterprises can make self-judgement and just keep the original supporting documents for future reference when conduct final settlement of enterprise income tax or enjoy preferential policies. Therefore, there is no need to apply for verification or filing in advance for the additional deduction anymore.

Some daily activities are inapplicable to the additional deduction including:

1. Routine upgrade of products (services);
2. Direct application for research achievements, for example, direct adoption of new technology, material, device, product, service or knowledge which have been already disclosed;
3. Technical supporting activities for customers after commercialization;
4. Repetitive or simply changes for existing product, service, technology, material or technological process;
5. Market research, efficiency survey or management study;
6. A part of industrial process or regular quality control, testing analysis and maintenance;
7. Studies on social science, art or humanities.