R&D classification is not determined solely by the technology used or by whether a project appears innovative. The assessment focuses, among other things, on novelty, scientific or technological uncertainty, the methodology applied, the development objective and the intended scientific or technological advancement. Routine development or the straightforward adaptation of an existing solution therefore does not necessarily qualify as R&D.

Individual project classification assesses a specific project to determine whether it qualifies as R&D. Project group classification, by contrast, covers several projects grouped together by the applicant. The procedure has two stages: first, the project groups are approved and projects are selected; then the selected projects undergo a detailed assessment. If the classification is positive, the presumption that the activities qualify as R&D may apply to all projects within the group.

Formal R&D classification is not a statutory requirement for claiming the R&D tax credit in every case, but it can provide significant technical evidence. During a tax audit, the tax authority may examine whether a project treated by the taxpayer as R&D actually met the statutory criteria. An expert opinion from the NRDI Office can therefore be an important means of substantiating the R&D activity, although all other requirements for the tax credit must still be met independently.

The costs that may be taken into account depend on the tax provision being applied. The assessment should distinguish between personnel expenses directly related to the project, material costs, costs of using assets and other expenses, and determine the extent to which each cost is genuinely connected with the R&D activity. Appropriate cost allocation and project-based record-keeping are therefore important practical requirements for claiming tax incentives.

No. The R&D tax credit under the new Corporate Income Tax Act may be elected instead of the previous R&D tax base deductions. This is not an isolated decision relating to a single cost or project, so it is advisable to model the impact of the election over several tax years before determining the tax strategy.

This may be possible, but it is not automatic and does not apply in the same way to every cost. The rules of the relevant funding scheme, state aid limits, eligible costs and the prohibition on double funding must be examined. The tax treatment of costs covered by funding and those not covered by funding must therefore be determined with particular care.

The timing of R&D classification should be considered when the project and tax strategy are being designed. Early preparation helps ensure that the project’s technical substance, cost accounting and internal documentation are aligned from the outset with the requirements for R&D classification and tax treatment. Applying for classification at a later stage may also be relevant in certain cases, but well-prepared documentation from the beginning can make subsequent substantiation significantly easier.

The required documentation depends on the nature of the project and the tax or funding provision applied. It may typically include the project’s technical description, documentation of development objectives and milestones, details of employees’ roles and time records, a breakdown of project costs, and records supporting the project results and development decisions. The key is to maintain a documented link between the project’s technical substance and the reported costs that can be reconstructed retrospectively.