Czech Parliament Approves Bill Boosting R&D Tax Relief

The Czech Republic will increase its tax allowance for qualifying R&D expenses of up to 50 million Czech koruna ($2.4 million) to 150%, under legislation approved Wednesday by the parliament.

Qualifying expenses above the limit will continue to benefit from the existing rate of 100%. To prevent artificial splitting of R&D expenses across multiple companies, the 50-million-koruna limit will apply group-wide, according to the bill.

• Under the country’s R&D tax incentives, qualifying expenses can be deducted twice: once as regular tax-deductible costs and a second time as a special tax allowance calculated by multiplying the qualifying expenses ...