The super-deduction for research and development is a tax instrument under Section 30c of the Income Tax Act that allows a business to repeatedly deduct research and development costs already recorded in the accounts from the tax base. Unlike a subsidy, it is not applied for through a call for proposals, and there is no evaluation or contract – it is applied directly in the tax return, which removes the administration of the project cycle. The condition is the preparation of a written research and development project with precisely defined particulars (objective, implementation period, projected expenditure, signature of the statutory representative) and the keeping of separate records of eligible costs, especially wage costs. Costs for which support from public funds has already been provided cannot be deducted – their combination would constitute double financing. The percentage deduction rate has repeatedly changed over the years, so verify the current rate and the scope of eligible expenditure in the applicable wording of the Act before applying it in the tax return.
See also: Double Financing, State aid, Horizon Europe.
