The tax deductible for research and development

Tax deductibles

Many companies are unaware that along with their day-to-day activities there is business activity that falls into the category of Science and Research. Research & Development concerns nearly all companies that produce their own products and continuously carry out product improvement (innovation).

When you are looking for money for research and development, or when you are considering the possibility of co-funding your research activities, are both situations in which it is suitable for you to declare the deductible items from the tax base and take the deduction. You may apply “twice“ for up to 100% of the funds that you put into your Research & Development activities.

Ask us to work out a non-binding analysis for you on the basis of which you can find out whether you are or are not entitled to the tax deductibles. It is advisable to leave this determination to specialists. When you work on the findings yourself, it is highly probable that you may overlook many expenses that can be considered as tax deductibles for Research & Development. Moreover, you might mistakenly consider some potentially suitable activities as Research & Development .Many companies are unaware that among their normal activities there is the agenda that belongs to the category of Science and Research. Research & Development concerns almost all companies that produce their own products and continuously carry out any improvement (innovation) of the products.

What are tax deductibles?

A tax deductible is an amount that is deducted from the tax base during the calculation of taxes. After an amount is deducted, a so-called altered tax base is formed.

Tax deductibles relating to Research & Development are enumerated in Income Tax Act no. 586/1992 Coll., as amended. Thanks to this law, you can deduct from the tax base up to 100% of expenses used toward Research & Development. The amount of the tax deductibles for Research & Development is not limited by the Act! Thanks to a careful processing of all essential documentation we will justify the tax deductibles at your local Tax Office.

Tax deductibles relating to Research & Development are enumerated in Income Tax Act no. 586/1992 Coll., as amended. Thanks to this law, you can deduct from the tax base up to 100% of expenses used toward Research & Development. The amount of the tax deductibles for Research & Development is not limited by the Act! Thanks to a careful processing of all essential documentation we will justify the tax deductibles at your local Tax Office.

What belongs to Research & Development?

The definition of Research & Development is defined in the Act on Support of Research and Development from Public Funds no. 130/2002 Coll., as amended.

Basic research means the theoretical or experimental work carried out in order to acquire new knowledge of fundamental principles of phenomena or observable facts, without any particular application or practical use.

Applied research is understood as theoretical and experimental work, which is focused on acquiring new knowledge and skills in order to develop new or significantly improved products, processes or services.

Experimental development is the acquiring, combining, shaping and the use of existing scientific, technological, business and other knowledge and skills for the design of new or improved products, processes, or services.

So, take advantage of potential funding for Research and Development through the deduction of expenditures on R & D (Research & Development).

Daňový odpočet na výzkum a vývoj lze využít i při vývoji nového hardwaru a softwaru Daňový odpočet na výzkum a vývoj lze využít i při vývoji nového hardwaru a softwaru

A Project of Research & Development

One part of the documentation that is necessary for the application of tax deductibles for Research & Development is the document Project of Research & Development, which we have made available for downloading.

If you have any question please feel free to contact us