Description of Incentive
An R&D incentive of 10% for all qualified R&D expenses for large businesses and SMEs. A company’s tax loss or profit positions do not influence their capability to access the credit. Once the application has been authorised by the Austrian Research Promotion Agency, the subsidy will be promptly paid by the tax authorities via a cash payment to the relevant tax account, which then becomes transferable to any account.
Eligibility Requirements
The eligibility for the incentive is broadly defined and is not restricted to any particular industries. The term ‘research’ encompasses basic and applied research, which comprises experimental development within the limits of the OECD definition – including software development.
A qualified R&D activity, generally, consists of the following factors:
- Any systematic or intensive study in the areas of science or technology;
- Objective of the results is to study the production of new or improved processes, materials, devices or products;
- Conducted in a systematic way to earnestly increase knowledge or develop new applications;
Qualified R&D expenditures include:
- capital investment;
- finance costs;
- staff costs;
- overhead costs;
- leasing costs; and
- subcontractor fees (conditions apply regarding subcontractor qualifying as EU/EEC institution and no relation to the principal, fees cannot exceed €1M annually)
Other Considerations
R&D claims are suitable to future, current and retroactive investment. Claims should be made between the end of fiscal year and date where the tax assessment year obtains legal force.
Swanson Reed offers the following services:
- Advice on tax preparation relevant to claiming the R&D tax credits incentive
- Preparation of documents relating to filing and substantiating a R&D taxation claim
- R&D tax advice and consultations
- R&D tax claim planning and preparation
For a full range of services in relation to the credit, please click here.