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27 R&D - Coggle Diagram

- - - - for Qualifying Research Exp
      - revenue in nature
      - related to in-house research programme undertaken by Co itself
      - research programme must have prior approval by the Minister of Finance
      - research programme need not to be related to the biz activity carried out by the Co
      - QE includes
        
        raw mat used in research
        
        technical services
        
        travelling and transportation costs
        
        salary and allowances of research staff
        OT, BIK :SD
        
        maintenance costs of research buildings and equipment
        
        rental of equipment, machinery or buildings used for research
        
        R&D QE deemed being used for biz can claim CA
      - Royalties
        
        royalties, licensing fees: NOT qualify
        
        these are purchased research
      - General non-research activities do not qualify for DD
        
        general education
        
        data collection or efficiency surveys
        
        mkt research and mktg
        
        routine testing
      - Pioneer Co S34A(4A)
        
        P/S Co carries out approved research project
        
        can elect to defer dedn of QRE to post-pioneer period
        
        R&D exp in TRP is added back, adj Y:arrow_up: (b4 was exempted)
        
        can elect to get SD after TRP
      - in-hse research which is a promoted activity
        
        CO can claim ITA but NOT P/S
        
        ITA = 50% of QE (CAPEX) for 10 yrs
        restricted to 70% of SI
        
        IF Co gets approval for its research activity, can claim DD (on REVEX) also
    - - user Co paid fees to either R&D Co or contract R&D Co
      - Tax mechanism
        
        User Co gets DD on payment made
        
        Contract R&D either gets
        
        P/S: 100% SI exemption for 5 yrs
        
        ITA:
        Lower of
        100% of QE for 10 yrs
        70% of SI
        
        provided contract R&D CO has adequate no of FT em'ees + incur adequate annual R&D operating exp
        
        Contract R&D Co must render its services only to unrelated parties
        
        User Co gets DD on payment made
        
        R&D Co (not related to user Co)
        
        No P/S
        
        Only ITA
        
        ITA: 100% x QE for 10 yrs
        
        User Co gets SD on payment made
        
        R&D Co (related to user Co)
        
        No P/S
        
        Only ITA
        
        ITA: 100% x QE for 10 yrs
        
        User Co gets DD on payment made
        
        R&D Co (related to user Co)
        
        No P/S
        
        Not claiming ITA
        
        An R&D Co may render its services to related Co + non-related Co