Grants and incentives in the Life Sciences and Healthcare (LSCH) industry
The LSHC industry is characterised by its R&D-intensive nature. Development of new therapies or medical devices often takes a long time and involves significant spending on research and development.
Grants and incentives in the Life Sciences and Healthcare industry
Within the LSHC sector, renowned for its intensive R&D nature, these tax incentives and government grants have always been vital resources. As the global landscape and its needs evolve, so does the array of offerings, tailored to meet contemporary demands. For companies, staying attuned to the dynamic availability of grants and incentives is crucial, necessitating a strategic and co-ordinated cross-business approach.
This article covers:
- What are grants and incentives?
- Grants and incentives as policy instruments
- The value of grants and incentives for the LSHC industry
- The role of tax functions in deploying grants and incentives
In view of ETR or EBITDA management, companies have been changing the set-up of their investment strategy; the availability of grants and incentives schemes has become an integral aspect being evaluated in an investment decision. Specifically, a key factor of a strong business case is a good Net Present Value (NPV), a financial estimate that is heavily influenced by the availability of grants and incentives support. As businesses adapt their investment strategies, the role of tax professionals becomes increasingly integral to the investment decision-making process. This shift underlines the necessity of a cross-business co-ordinated approach in investment planning.
Maximising the benefits of grants and incentives requires the set-up of a cross-functional organisational process flow throughout the investment approval process.
Integrating tax teams and (financial) experts into strategic investment decisions helps businesses to fully leverage available opportunities while assessing potential risks and mitigation strategies.
Bringing advisers to the table to inform which grants and incentives are available to the company and the targeted investments will add value to the business case, increasing the effectiveness of investment decisions and the ROI of strategic investments.
Get in touch
Lyn Venken
Director
Deloitte Belgium
Tel: + 32 2 600 66 31
Mobile: + 32 471 64 78 66
Email: lvenken@deloitte.com
Adam Kirkpatrick
Partner
Deloitte UK
Tel: + 44 7540 362769
Mobile: + 44 121 695 5370
Email: adakirkpatrick@deloitte.co.uk
