Commission proposes re-launch of Common Consolidated Corporate Tax Base including incentive for R&D
On 26 October the European Commission announced a tax reform - the Common Consolidated Corporate Tax Base (CCCTB) -proposal. CCCTB contains a special innovation incentive that allows for the costs of R&D investment to be tax deductible. All companies that invest in R&D will be allowed to deduct the full cost of this investment plus an additional percentage of the costs, depending on how much they spend. The full cost of R&D will be 100% deductible, while an additional 50% deduction will be offered for R&D expenses of up to EUR 20 million. An additional 25% deduction will be allowed for R&D spending over EUR 20 million.
Start-ups will be able to deduct even more to get off the ground. In addition to being able to deduct 100% of their R&D costs, they will be allowed to deduct a further 100%. This shall give them an additional boost.TOP