Entrée en vigueur de certains changements fiscaux et comptables liés aux dépenses de R&D.
Since January 1, 2022, companies have been required to record their research and development expenses on their balance sheets and amortize them over a specified period. The amortization period takes into account whether the research is conducted in the United States or abroad.
With the entry into force of this new legislation, we advise you to reassess your tax planning in terms of both cash flow and the effective tax rate. The new law will affect all industries, but particularly companies that, due to the nature of their activities, have a significant R&D component, such as companies in the life sciences or technology sectors.
Until December 31, 2021, for tax purposes, companies treated these costs as expenses for the current fiscal year. Software development costs were treated the same way. Accounting for R&D and software development costs as expenses for the current fiscal year allowed some companies to reduce their tax burden.
Case study:
Your company operates in the technology sector and you have invested heavily in research and development. You are required to capitalize these expenses on your company’s balance sheet and amortize them.
As a result, your company could generate a taxable profit because you have fewer R&D expenses to deduct from your revenue. In this case, we advise you to estimate your projected corporate tax and begin making quarterly installments. The calculation of your foreign tax credits and your effective tax rate could also be affected.
Your accounting and auditing firm Aimlon CPA PC is at your disposal to assess the impact of the entry into force of the new law on your business.