Secure research premium of 14 percent

Expert opinion R&D Tax Incentive

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 in 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.

 Assessment basis

An important part of the application processing is the definition of the assessment basis. The correct allocation and delimitation are decisive: Which costs or which expenses may be taken into account?

What positions in

• Personnel expenses
• Material and equipment costs
• External services
• Travel and installation expenses
• Financing costs
• Overheads and
• Investments

in the research premium are relevant and thus include the potential of 14% tax-free should be clarified before filing with the tax office.