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On the strategic background of innovation driving development, based on the basic analysis of valueadded tax deduction and the function of value-added tax optimizing the economy, this article raises to increase the labor costs for internal R&D, amortization of depreciation of long term assets used directly for R&D, income deduction for amortization of technical intangible assets, as well as making corresponding adjustment on accounting so as to stir the R&D, promote the technological progress and economic transition

Innovative VAT Income Deduction Policy and Accounting Process from the Perspective of Technical Innovation