A newly adopted amendment to the Income Taxes Act increases the deduction of R&D costs from the original 100% to 150% for the 2019 taxation period and to 200% for the following taxation periods. The period for the preparation of the R&D project also changes and the project no longer has to be prepared before the beginning of its realisation. The taxpayer is newly required to prepare it within the period for filing the tax return for the period where the deduction was utilised. Companies will also surely appreciate the transfer of the entitlement to deduction, which can now be applied for an additional year longer, i.e. over five years. The objective of these measures is to make the deduction more attractive and to support more extensive realisation of R&D activities.

The article is part of dReport – October 2019, Tax news; Grants and investment Incentives.