Research and Development
Tax Allowance
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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
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.
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- 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
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Petr Mašek
Director
petr.masek@pwc.com +420 724 369 356
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Lenka Holoubková
Senior Manager
lenka.holoubkova@pwc.com +420 731 533 872