We provide a comprehensive service, from project conception to project application writing and, subsequently, project implementation, as outlined in the Act on State Support for Research and Development Projects. The service is based on the advisor’s extensive experience and numerous projects written and implemented according to best practices, in order to achieve the maximum possible tax support for the applicant.
Key information about the Law on State Support for Research and Development Projects
The Law on State Support for Research and Development Projects encourages entrepreneurs to invest in research and development activities and to cooperate with scientific organizations for research and knowledge dissemination, providing them with tax benefits in the form of a tax base reduction for a certain percentage of eligible costs. Based on an investment cycle lasting 3 years, the investor has the opportunity to use support in the form of a tax benefit.
Eligible costs
Eligible costs are calculated in amounts before the deduction of taxes or other fees and based on the submitted evidence in written form. Eligible project costs include:
- staff costs
- depreciation costs
- research, knowledge, and patent costs
- consulting and similar service costs
- business expenses that include the costs of materials, consumables, and similar products
- overhead costs
- feasibility study costs.
Type of support
The support is manifested in the form of tax relief, which reduces the tax base during the project period for a maximum of three years. The tax base is reduced by the amount of the realized project costs increased by a certain percentage.
Support intensity
The aid intensity ranges from 25% to 100% of eligible costs, depending on:
- the type of project activities (fundamental research, industrial research, experimental development, or feasibility study) and
- whether there is practical cooperation with a partner or the intention to publish the research results to the general public.
Maximum support thresholds
The total amount of aid (which can be obtained by one beneficiary per project) for research and development is as follows:
- mainly fundamental research: up to € 300,000
- mainly industrial research: up to € 200,000
- mainly experimental development: up to € 100,000
- feasibility studies: up to € 50,000 per study.
A project is defined as predominantly basic, predominantly industrial research, or predominantly experimental development, depending on which research category covers more than half of the eligible project costs.
If the applicant contracts cooperation with research and knowledge dissemination organizations (e.g., universities, research institutes, etc.), it is possible to increase the maximum total aggregate amount that an individual entrepreneur can achieve for a research and development project, as follows:
- predominantly basic research: up to EUR 55 million
- predominantly industrial research: up to EUR 35 million
- predominantly experimental development: up to EUR 25 million
- feasibility studies: up to EUR 8.25 million per study.
Tax base reduction
The beneficiary receives support through an additional tax base reduction for eligible costs of research and development projects, i.e., feasibility studies, in the following total percentages:
- 400% of eligible project costs for basic research
- 300% of eligible project costs for industrial research
- 250% of eligible project costs for experimental development
- 300% of eligible project costs for feasibility studies.
Project preparation and implementation process under the Act on State Support for Research and Development Projects
We prepare the entire application documentation for investors and obtain the status of the holder of incentive measures under the Act on State Support for Research and Development Projects. After receiving the status of a holder of incentive measures, we provide support throughout the implementation phase, which includes preparing annual reports and supporting documentation.
Preparation of project documentation
The process of preparing a project application consists of the following phases:
- conceptualization of the project by the needs and requirements of the client
- analysis of the current and future situation, and collection of necessary documentation
- preparation of the project application and provision of support in collecting supporting documentation
- communication with the competent Ministry and preparation of an application supplement as necessary
- acquisition of the status of a support beneficiary.
Support in project implementation
Project implementation is a comprehensive process consisting of:
- preparation of annual reports for the duration of the project
- administrative support in collecting supporting documentation.