Should technology transfer fees be included in the cost of management or intangible assets?

Q:

Our company paid 300,000 yuan for technology transfer fees to expand production this year.Shoud this fees be the part of the costs included in administrative expenses or be credited to the amortization of intangible assets in phases?

A:

According to the "People's Republic of China Enterprise Income Tax Law," the 12th "in the calculation of taxable income, in accordance with the provisions of enterprise computing costs of amortization of intangible assets, the deduction allowed" and "People's Republic of China Enterprise Income Tax Law Regulations for the Implementation of the" 65th Article "Enterprise Income Tax Law Article XII of the alleged intangible assets, is the enterprise for the production of products, provide services, rental management, or held, there is no physical form of long-term non-monetary assets, including patents, trademarks, copyrights, Land use rights, non-patent technology, such as goodwill, "provides that the transfer of technology your company may not apply for patents, but is used to expand production, can be considered as holding companies for the production of non-patent technology, so Still belong to the Income Tax Act as provided for in intangible assets.

Technology transfer fees Your company has paid should be phased amortization of intangible assets.