Austria has relatively generous tax incentives, spending an estimated €574 million in payouts to businesses for research subsidies in 2012. Tax Authorities in Austria offer a subsidy, titled “Forschungsprämie”, that is equal to 10% of qualifying R&D expenses.
R&D incentives are provided in the forms of cash, loans and guaranties. The percentage of the R&D premium may increase depending on the category of R&D activity that is being initiated by a company.
Depending on the type of R&D activity that is being undertaken the percentage of the R&D premium may increase. Rates of 20% or higher are prevalent for SMEs, projects that are highly innovative or a project where R&D institutions work alongside several companies in unity. Moreover, aside from the general incentives provided by the Austrian Government, businesses can also acquire the European Commission’s Horizon 2020 program.
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.
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:
Qualified R&D expenditures include:
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.
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