Vocabulary

Tax Deductibles from R&D (Research & Development)

This is the main supporting instrument of R&D, and thanks to it, you can take a tax deduction from the tax base of up to100 % of the costs incurred in realization of R&D projects.

This concept can be looked up as well under the following wording: tax concessions of R & D (Research and Development), the tax deductibles from R & D, tax deductible items from R & D.

Basic Research

"Theoretical and experimental work carried out primarily to acquire new knowledge of the fundamental principles of phenomena or observable facts, and not primarily focused on the application or practical use."

Definitions based on Section 2 of Act no. 130/2002 Coll.

Applied Research

"Theoretical and experimental work aimed at obtaining new knowledge and skills for developing new or significantly improved products, processes or services."

Definitions based on Section 2 of Act no. 130/2002 Coll.

Experimental Development

"Acquiring, combining, shaping and using existing scientific, technological, business and other relevant knowledge and skills for the design of new or significantly improved products, processes or services."

Definitions based on Section 2 of Act no. 130/2002 Coll.

Innovation

"The introduction of new or significantly improved products, processes or services into practice, with particular emphasis on the innovation of processes and organizational innovation:
1. Innovation of processes means the implementation of a new or significantly improved production or the provision of services, including significant changes in techniques, equipment or software,
2. Organizational innovation means the implementation of a new organizational method in business practices, workplace organization or external relations."

Definitions based on Section 2 of Act no. 130/2002 Coll.

Research & Development Project

"A written document in which the taxpayer, before the start of the Research and Development project, defines its activities in Research and Development, including, in particular, the basic taxpayer identification data, which is the commercial name or the taxpayer's address and identification number, if assigned, or the name and surname of the taxpayer if the taxpayer is a natural person, his place of residence and place of business, the duration of the project (start date and end date of the project), project objectives that are achievable when involved with the project and that are assessable after its completion, the estimated total expenses (costs) for the project and the estimated expenses (costs) for each year of the project, the names and surnames, qualifications and employment relationship of qualified persons, the method of monitoring and evaluating the progress of the project and the achievements, date, place, name and surname of the person authorized to approve the project before its commencement; an authorized person is the taxpayer when it is a natural person, or a person representing a statutory body of the taxpayer or a person who is a member of a statutory body of the taxpayer. "

This definition is based on Section 34 of The Income Tax Act No. 586/1992 Coll.

Patent

"A Patent is an invention, which is granted a certificate of invention, and the certificate of invention is granted:
- in the case of a Czech patent, by the Intellectual Property Office under the conditions of Inventions and Innovative Proposals Act no. 527/1990 Coll., as amended;
- in the case of a European patent, by the European Patent Office (EPO) under the conditions laid down by the European Patent Convention;
- in the case of other relevant patents, the Patent Office under the conditions laid down by that patent office.
The outcome is a patent granted to protect the original results of Research and Development, and which were made by the author who was a member of R&D or by a team of R&D. For a result of this kind can be considered the result at the time of issuing the patent document (in case of a Czech patent) or another document, which has the same effect. The result of this kind cannot be considered a patent application at any stage of the patent granting procedure. Only the granted patent is evaluated, not the patent application. National patents are assigned a point value and are distinguished as national patents (any patent granted by national patent offices, with the exception of the USA and Japan) and Europe, USA and Japan."

Definitions are based on the document Methodology for evaluating the results of research organizations, the Council for Research, Development and Innovation.

National patents will be further differentiated according to whether the patent is unused or used by the owner of the patent, or whether it is used under a valid licensing agreement.

Utility Model

“A “Utility Model“ result is realized during the initial results of R&D, which were made by the author who was a member of R&D or by a R&D team. A utility model is a technical solution that is new and goes beyond mere professional skill and one that is industrially applicable. A utility model can only be considered a technical solution if it is registered by the Industrial Property in the register of utility models. Details on login, registration, and the duration of the utility model is determined by Act no. 478/1992 Coll., On Utility Models, as amended."

Definitions are based on the document Methodology for evaluating the results of research organizations, the Council for Research, Development and Innovation.

Industrial Design

“An “Industrial Design” result is realized during the initial results of R&D, which were made by the author who was a member of R&D or by a R&D team. Industrial design enjoys protection under Act no. 207/2000 Coll., On Protection of Industrial Designs and amending Act no. 527/1990 Coll., On Inventions, Industrial Designs and Rationalization Proposals, as amended."

Definitions are based on the document Methodology for evaluating the results of research organizations, the Council for Research, Development and Innovation.

Prototype

"A "Prototype" result is realized during the initial results of R&D, which were made by the author who was a member of R&D or by a R&D team. This is a complicated industrial product, made as one piece in order to verify design in practice or in testing prior to serial or mass production. A prototype can only be considered as a product if its development was the aim of the applied research project, experimental development and innovation or other activities of applied R & D (Research and Development for Innovation)."

Definitions are based on the document Methodology for evaluating the results of research organizations, the Council for Research, Development and Innovation.

Functional Sample

"A "Functional Sample“ result is realized during the initial results of R&D, which were made by the author who was a member of R&D or by a R&D team. It is equivalent to a prototype with the only difference being that after the development or production of the functional sample, serial or mass production does not immediately follow. This is for example design, development and subsequent production of unique instruments and laboratory equipment. A functional sample can only be considered a product or a device if its development was the aim of the applied research project, experimental development and innovation or other activities of applied R & D "

Definitions are based on the document Methodology for evaluating the results of research organizations, the Council for Research, Development and Innovation.

Software

"A "Software" result is a result that was provably demonstrated in connection with research activities and its author (creator) is or was involved in solving a research activity of the recipient (or third party) and one that can be freely used in accordance with the license terms of the creator and in accordance with § 16 of the Act. It is not software which the recipient created only for his own needs and that uses only the beneficiary, the other party, or the provider. (i.e.: if its development is not due to a regulatory requirement)."

Definitions are based on the document Methodology for evaluating the results of research organizations, the Council for Research, Development and Innovation.