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Taxpayers which undertake R&D may apply for a tax advantage consisting in the deduction of R&D expenditures (costs) - super-deduction from the tax base.
The Slovak economy is transforming into a knowledge economy, and new instruments in our legislation support the R&D activities of entrepreneurs. One of the most important is undoubtedly the R&D super-deduction of costs.
Before the 2018 tax period, Slovak tax payers could deduct from their tax base utilized by tax loss only 25% of eligible costs spent on R&D. From 01.01.2018, the amount of deductible costs increased to 100%. The super-deduction mechanism was extended by positive year-on-year increase of R&D costs.
It is now clear that the effort of the government to enhance R&D activities in Slovakia will continue. Together with an amendment to the Act on Corporate Income Tax effective from 01.01.2020, the possibility to deduct eligible costs spent on R&D activities from the tax base utilized by the tax loss will increase to 150% for the tax period starting 01.01.2019 and to 200% for the tax period of 2020 and subsequent periods.
During the tax period of 2017, the R&D super-deduction was used by 163 companies that utilized tax in the amount of EUR 40.10 mil.
Partner & TLP Leader, PwC Slovakia
Tel: +421 911 425 109
Partner, CEE TLP Clients & Markets Leader, PwC Slovakia
Senior Manager, PwC Slovakia
Tel: +421 910 509 114