Research and Development activities eligible for the FZulG tax allowance are clearly defined in the Frascati Manual (the international reference for R&D projects). Three main categories are concerned:
- Basic research (analysis of the properties and structure of elements)
- Applied research (application and use of results stemming from basic research)
- Experimental development (creating new products and procedures)
The nature and kind of R&D project will condition the company’s eligibility to the
“Forschungszulagengesetz” tax allowance. Also, the Research and Development project must be in compliance with current taxation and fiscal guidelines.
The project must tackle particular scientific issues and technical difficulties and propose pertinent solutions through technological innovation advanced by the company in their current field. Applications must respect these criteria of eligibility concerning the project’s nature and scope.