Methodology - Government tax relief for R&D expenditure (GTARD)

Government tax relief for R&D expenditure (GTARD) is applied deduction of expenditure on realisation of R&D projects from income taxes of legal and natural persons.

Data on the government tax relief for R&D expenditure (GTARD) have been surveyed by statisticians since 2007. Tax returns are the administrative data source. Only legal persons (enterprises) in institutional sectors S.11 Non-financial corporations and S.12 Financial corporations are surveyed. Information on natural persons (entrepreneurs) is not available.

Government tax relief for R&D expenditure (GTARD) is calculated based on the following formula: Government tax relief for R&D expenditure (GTARD) = applied deduction of expenditure on R&D from the tax base multiplied by the tax rate.

Deductions cannot be applied on services and intangible results of research and development (except for those purchased from public universities, public research institutions, and other research organisations mentioned in the Act No 130/2002 Sb, on the Support of Research, Experimental Development, and Innovations from Public Funds). A complete list of properties / eligible costs can be found in the instruction of the Ministry of Finance No MF-17.