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Tax rebates for research and development costs

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Every company in the Czech Republic is legally entitled to an annual income tax reduction if it engages in its own research and development.

R&D costs can be deducted twice on the tax return. First as a normal cost, then as a so-called deductible item (otherwise also referred to a tax deduction).

Each project must meet the following criteria:

  • The resulting product must be new, at least within the company
  • The project must overcome research or technical uncertainty 
  • The project solution must be systemic

This includes, for example, a development or an improvement of existing products (in terms of design and materials), a development of sophisticated software (for example, a search for new programming solutions, algorithms, etc.), a development of new processes, and more. 

Why benefit from R&D deductions?

  • They are available to companies large and small
  • They are available to all companies in the Czech Republic (even those doing business in Prague) 
  • They are available to companies in all areas of business 
  • You can claim the deduction for the entire research and development period – even for several years 
  • You can run any number of projects at the same time
  • The deduction is a legal deduction, the project is not subject to any external evaluation or initial approval, all you have to do is notify the tax authorities 
  • Administratively less demanding than subsidies 
  • Due to the conditions set in 2019, they are simpler and more transparent compared to previous years

Contact

Contact Person Picture

Ing. Petr Andrle

Project Manager, Business Consultant

Senior Associate

+420 734 201 097

Send inquiry

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