Super deduction of R&D costs


The deductible costs include the sum of the following:

  • 25% of the R&D costs incurred in the taxation period for which the tax return is filed;
  • an additional 25% of the salary costs of employees incurred in the taxation period during which employment contracts have been entered into for those employees who were graduates before entering into the employment;
  • 25% of the positive difference between the R&D costs incurred in the taxation period for which the tax return is filed and the R&D costs of the immediately preceding taxation period.

The costs to be deducted have to be booked on separate accounts. It is possible to deduct costs, as defined above, which directly and fully relate to R&D projects. If these costs partially relate to R&D projects, only a proportional part of these costs can be considered for deduction.

Costs of the acquisition of services, licences or the non-tangible results of R&D activities can also be deducted provided they are acquired from public research institutes present in the Slovak Republic.

In order to use this benefit, the company should compile and sign an R&D project including the following:

  • identification of the company;
  • expected commencement and completion of the project;
  • description of the project, its objectives measurable during its implementation and at completion;
  • volume of the costs split into years and their structure;
  • involved personnel;
  • method of the evaluation of project results.

It is not necessary to file the project documentation with any institutions before the company files its tax return for the tax period in which these R&D costs will be deducted from the tax base. However, the tax authority will ask that it is presented at the tax inspection.

If the R&D costs cannot be deducted immediately due to significant tax losses, it is possible to postpone the deduction (in full or in part) until the next taxation period in which the company has a positive tax base. However, the costs cannot be deducted later than in the 4 consecutive taxation periods following the period in which the company was entitled to deduct the R&D costs.


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