Research and Development

Tax Allowance

Supporting Research and Development

Supporting research and development is crucial both for companies to stay competitive and for the future development of the economy.

Among other incentives, private R&D expenses can be subsidized by an indirect tax allowance which allows you to deduct R&D expenses from your company’s tax base.

In general, identifying R&D expenses is no simple task, and actually applying the allowances reveals a number of questions, issues of interpretation and uncertainties about the legislative framework itself, whether it be from the perspective of the taxpayer or the Tax Office.

Legal Scope

R&D deductible items are defined by

  • § 34 and § 34a -34e Act No. 586/1992 Coll., the Income Taxes Act (“ITA”)
  • Directive of the Ministry of Finance MF-17, ref. MF-4869/2020/15-2


100/110 % of expenses spent on R&D can be claimed as an item deductible from the tax base in a single taxable period, and therefore in practice these expenses are deducted twice from the tax base.

Examples of R&D projects for individual industries

How can PwC help?

  • Reviewing your current R&D activities to determine their eligibility for the R&D tax allowance.

  • Sorting out projects which may qualify for the R&D tax allowance.
  • Providing advisory services on R&D deductions and other public support.
  • Preparing an internal policy for R&D.
  • Preparing the project documentation to apply for the R&D deduction.
  • Analyzing and recommending how to effectively set up internal systems for recording expenses related to R&D deductions, including training staff.

. .

  • Preparing status reports and final reports for individual projects.
  • Reviewing the calculation of the R&D allowance.
  • Preparing an expert opinion for the R&D allowance.
  • Contacting an expert in your industry to prepare an expert opinion for the technical aspects of your eligible R&D projects.
  • Preparing a request for a binding ruling of R&D expenses.

Our team

Petr Mašek

Director +420 724 369 356

Lenka Holoubková

Senior Manager +420 731 533 872

Contact us

How can we help you?

I acknowledge that my personal data provided in the contact form will be processed by entities from the PwC network mentioned in the section “Data controller and contact information” in the Privacy Statement in accordance with appropriate legal provisions (mainly the Regulation of the European Parliament and the Council (EU) 2016/679 of 27 April 2016, the General Data Protection Regulation (GDPR)). More information on how we process your personal data is available here.

Please read our Privacy Statement where you can learn more about our approach to personal data and your rights, in particular your right to object to the processing of your personal data.

I consent to receive electronic communication from entities from the PwC network (the list of member firms of the PwC global network is available here), mainly information regarding: - developing our businesses and services, - providing information to you about the member firms of the PwC network and their range of services, in accordance with appropriate legal provisions (in particular with Sec. 7 of the Act No. 480/2004 Sb., on certain information society services).

You have the right to withdraw your consent at any time. Every email we send you will include a one-click link so you can unsubscribe from the mailing list at any time.