On April 10th, Puyang Science and Technology Bureau, Municipal Finance Bureau, National Taxation Bureau, and Local Taxation Bureau organized relevant experts to work on pre-tax deduction of income tax of research and development projects in PRCO in 2014.

Project recognition committee included experts like Jin Qinguo, Ye Guotian, and Zhao Xinling and so on. City leaders attending the meeting include deputy director of Municipal Science and Technology Bureau Si Qingyu, chief of politics and law Dong Guimin, deputy chief of finance bureau Liu Dongqing. Vice president of technology center in PRCO Zhang Houxing, deputy director Liu Guowei, as well as some project managers attended the meeting.

After listening to the report of project managers and reviewing relevant information, the committee had a discussion and agreed that 10 projects declared by PRCO, such as The Development and Application of Light-Weight Spraying Mixes for Tundish, Development of Environmental-Friendly Water-Free Tap Hole Clay, and the Research of Abrasion-Resistant Plastics and others, 7 projects declared by PRCO Functional Co., Ltd, such as The Development and Application of Stopper with Long Service-Life for High Oxygen Steel Smelting, Development and Application of the Pulling Mechanism of Purging Plug Core and the Tightening Mechanism, and The Development and Application of High-Performance Burnt Slide Plate all meet the requirement of the Regulations on Tax Deduction of Enterprises Research and Development Expenses (issued by National Taxation［2008］No.116), and Notice on Enterprise Research and Development Expenses in Henan Province ( Henan［2009］No.101), belonging to high-tech field with the government primary support, and are recognized as research and development projects.

The pooling of R & D projects expenses and the identification of R & D projects are essential to reduce the tax burden of the enterprise. Once recognized as research and development projects, the research and development expenses incurred in the year can be deducted in accordance with the provisions when calculating the amount of taxable income. The financial department estimated that the R&D expenses will be deducted by nearly RMB 4.5 million.