- R&D Tax Incentive
- Target groups
Companies that incur expenses for research and experimental development can apply for a research premium of 14 percent for the research expenses they incur. Both in-house research and contract research are eligible for the premium.
Since 2012, the Austrian Research Promotion Agency (FFG) has been acting as an evaluator to review the content of the research premium.
The decisive factor in terms of content is primarily whether the implementation of the project or contract involves solving technical tasks that involve a technical risk and could be solved by building up technical knowledge within the company.
The assessment is made on the basis of the information provided, whereby the definitions of terms in Section 108c of the Income Tax Act, the Research Premium Ordinance and, in addition, in accordance with the so-called Frascati Manual (2002) of the OECD form the basis.
The Frascati Manual defines criteria, definitions and delimitations of research and experimental development, which are used as a basis for research and development projects throughout Europe. All funding agencies and also research premium-like tax incentives or credits in other EU countries refer to this basis when designing their guidelines and funding programs.
An important part of the application processing is the definition of the assessment basis. The correct allocation and delimitation are crucial: Which costs or which expenses may be taken into account?
Which items in
are relevant in the research premium and thus include the potential of 14% tax-free should be clarified before submission to the tax office.