The government offers a variety of tax and non-tax incentives to encourage and attract investments in innovation, research and development (R&D), infrastructure, employment expansion and sustainability. In addition, grants and incentives helps to advance a broader and more dynamic range of policy priorities.
R&D can take place in any sector. It is not only restricted to activities carried on in a laboratory, but it might consist of work that a company is carrying on in its day to day activities, such as developing a new product, process or service or changing/modifying an existing product, process or service. Generally, qualifying R&D activities must seek to achieve scientific or technological advancement and involve the resolution of scientific or technological uncertainty. Identifying and quantifying eligible activities for the purpose of R&D incentives may be quite complex but with potential savings of 25%- 70% (depending on size of the enterprise) of eligible costs, it is worth assessing whether your business carries on any eligible R&D activities.
Collaborative R&D projects which meet the qualifying criteria are also supported by increased assistance in the form of tax credits and/or cash grants of 40%-80% of eligible costs (depending on the size of the undertaking).
The EU Definition of a Small or Medium Sized Enterprise (SME*) consists of the following: