Research and Development Incentive Overview

Research and Development (R&D) plays a critical role in business today. Increasing national economies are recognising the important role innovative companies play by introducing and promoting tax incentives and grant programmes to encourage additional research investments by businesses. The tax incentives are typically in the form of tax credits, super deductions or in some cases by cash grants. In some jurisdictions, they provide relief in the form of reduced tax rates for income in relation to the technology based intellectual property (IP).

With the increasing focus and impact of transfer pricing, IP protection, grants and capital investment to encourage and maximise return on investment in R&D, Baker Tilly International member firms have consolidated a high level overview of key considerations across multiple jurisdictions for businesses.

All incentives noted in the brochure are subject to further detailed conditions which should be assessed. Baker Tilly International member firms can assist you and your global team by:

  • Identifying available research activities 
  • Identifying qualifying IP in your company 
  • Analysing detailed accounting records to find costs available for jurisdictional relief 
  • Advising on optimal transparency and structure in the accounting records to increase consistent use of R&D tax incentives 
  • Considering existing and potential alternative tax planning strategies based on the rules in differing jurisdictions, considering not only the incentives for research expenditures, but various implications such as withholding taxes, available grants for job creation, and corporate tax rate reductions for the licensing of IP 
  • Anticipating and responding to economic and legislative changes. 

Working with you, Baker Tilly International member firms will develop strategies to assist you in obtaining your goals of expansion and growth. Experts will jointly develop effective strategies for obtaining grants, incentives for innovation, and alternative energy/green initiatives.

Incentives are continuously set to develop and evolve as such, for the latest status and information, please contact the local team. Contact information for each country can be found in the brochure on page 107.