Accompanying law to JMHZ brings changes to R&D allowances

The first change is the increase of the allowance to 150 per cent of the expenses incurred for research and development. However, this increase can only be claimed up to a limit of CZK 50 million, and all taxpayers who are part of the same allowance group are included in this limit. The allowance group includes the controlling person and persons controlled by the controlling person themselves or jointly with another person. If the limit is exceeded, the research and development allowance will be 100 per cent of the expenses incurred. At the same time, the possibility to claim 110 per cent of the expenses incurred for research and development from the amount exceeding the aggregate of such expenses for the previous period will be abolished.

Another new feature is the extension of the period for claiming an R&D allowance from three to five years. At the same time, the condition that allows the postponement of the allowance only if the allowance cannot be claimed due to a low tax base or a tax loss will be abolished. Claiming an R&D allowance will therefore operate similarly to claiming a tax loss.

The names of the persons professionally responsible for the implementation of the R&D project will still be required to be included in the project documentation for the R&D project. However, it will no longer be mandatory to indicate their qualifications or the form of their employment relationship.

The senate returned the accompanying law to the JMHZ to the chamber of deputies with amending proposals at the end of July. It is expected to be promulgated in the Collection of Laws in late September/early October 2025. The above provisions are to take effect on 1 January 2026.