To enjoy the advantage of additional deduction for R&D expenses, seven types of data need to be retained for future reference. According to the Notice on Further Implementing the Policy of Additional Deduction for R&D Expenses, enterprises need to prepare an auxiliary account of R&D expenses, fill in the Preferential Schedule for Additional Deduction for R&D Expenses (A107012), and keep it together with other materials for future reference. Other information includes:
(a) proposal for the independent, entrusted or cooperative research and development project, and the resolution passed by the power organ of the enterprise pertaining to setting up the independent, entrusted or cooperative research and development project;
(b) composition of the organization or project team for the independent, entrusted or cooperative research and development project, as well as name list of the research and development personnel;
(c) contract for the entrusted or cooperative research and development project, which is registered with the science and technology administrative authorities;
(d) explanation on distribution of expense of staff undertaking research and development activities and instruments, as well as equipment and intangible assets used for research and development activities (including records on work and usage);
(e) balance sheet for research and development expenses of research and development projects, breakdown of distribution of expenses of research and development projects, the actual benefit-sharing ratio etc.;
(f) subsidiary ledger for research and development expenditure;
(g) where the enterprise has obtained an expert opinion issued by the science and technology administrative authorities of prefectural level and above (inclusive), the expert opinion shall be retained for future inspection; and
(h) any other materials stipulated by the provincial tax authorities.