The government on 23 November 2016 submitted a bill to the lower house of the parliament on amending the list of deductible costs relating to research and development (R&D) for corporate income tax purposes.
The main requirements are discussed below:
–the costs for developing internally property rights further to performing research and development (R&D) activities will not be included in the corporate income tax base, under certain conditions;
–the list of deductible R&D costs on salaries paid to R&D personnel is amended. Certain stimulation payments granted to R&D personnel will be included in the deductible costs relating to R&D. At the same time, expenses on voluntary insurance of R&D personnel will not be considered deductible R&D costs. Only mandatory insurance expenses will be tax deductible; and
–the expenses on acquiring exclusive patent rights will be tax deductible expenses, only if such rights are used in performing R&D.
