October Grants & Incentives program updates The latest legislative developments from around the world
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1 October 2014 Grants & Incentives program updates The latest legislative developments from around the world
2 Countries included This update provides a summary of the latest developments affecting Grants & Incentives and Research & Development programs. For more information, please contact the local partner of the respective program directly. EU Czech Republic Germany The Netherlands Poland Portugal Thailand For more information
3 EU Marie Sklodowska-Curie Innovative Training Networks (ITN) European EU Industrial Doctorates (EID) European Industrial Doctorates (EIDs) aim to train highly-skilled researchers and stimulate entrepreneurship, creativity and innovation in Europe. Each EID is composed of at least two beneficiaries established in two different Member States or Associated Countries. At least one beneficiary must be entitled to award doctoral degrees and at least one beneficiary must come from the non-academic sector, primarily enterprise. Each participating researcher must be enrolled in a doctoral program and spend at least 50% of their time in the non-academic sector. 25 million Cash grant Tel no. 13 January 2015 Steve Conibear stconibear@deloitte.co.uk
4 Czech Republic Amendment to the Act on Investment Incentives Discussions are currently being held by Czech authorities to increase support (from 7,260 to 10,890 per job) for investors who create new jobs as part of investments in supported regions; to introduce type I regions (newly defined economic zones), where the exemption from real estate tax for a period of 10 years will apply; and to reduce the minimum requirement for the number of newly created jobs (which is one of the general conditions given by the Investment Incentives Act) by software development centers (from 40 to 20) and shared service centers (from 100 to 70). Tel no. Not applicable Investment incentive Second half of 2015 Luděk Hanáček, Director, Tax lhanacek@deloittece.com
5 Germany Chemical Industry, metal production industry, materials and ceramics industry, manufacturing r+impulse - Innovative Technologies for Resource Efficiency This R&D scheme focuses on the transfer of R&D results into innovation. It can support prototype and demonstration projects on the following topics: Increase in material and energy efficiency especially in resource intensive production processes Return of high quality material fractions from waste Recycling and substitution of economically strategic raw materials Further use-as-material of CO2 for chemical production and energy storage Tel no. No overall budget published For companies up to 25% of eligible costs can be funded For universities and research institutions up to 75% of eligible costs can be funded Non-repayable cash grant to a company or a consortium Submission of project outline (first step): 2 March 2015 and 1 March 2016 Oliver Hasse, Senior Manager or Teresa Stahl, Professional ohasse@deloitte.de or tstahl@deloitte.de or
6 Germany Computational Neuroscience Funding initiative Germany - USA Cooperation in Computational Neuroscience This R&D scheme aims at bundling resources and infrastructure from systems biology, bio informatics and toxicology to develop 3R-(Replacement, Reduction, Refinement) based research. Funded projects should generate scientific advances regarding the understanding of toxicological processes in the human body while developing and using new 3R-based research methods. Tel no. From 70,000 up to 180,000 per year per project as non-repayable cash grant (project duration of up to 3 years expected) For companies up to 50% of eligible costs can be funded For universities and research institutions up to 100% of eligible costs can be funded Non-repayable cash grant to a consortium of German and American companies and research institutions Submission of project outline (first step): 14 November 2014 Oliver Hasse, Senior Manager or Teresa Stahl, Professional ohasse@deloitte.de or tstahl@deloitte.de or
7 Germany Systems biology, bio informatics, toxicology Funding initiative Germany - Netherlands InnoSysTox - Innovative system toxicology as alternative to animal testing This R&D scheme aims at bundling resources and infrastructure from systems biology, bio informatics and toxicology to develop 3R-(Replacement, Reduction, Refinement) based research. Funded projects should generate scientific advances regarding the understanding of toxicological processes in the human body while developing and using new 3R-based research methods. Up to 750,000 per project as non-repayable cash grant (project duration of up to 3 years expected) For companies up to 50% of eligible costs can be funded For universities and research institutions up to 100% of eligible costs can be funded Non-repayable cash grant to a consortium of at least three partners: A German and a Dutch research institution and one company from any of the two countries Submission of project outline (first step): 16 December 2014 Oliver Hasse, Senior Manager or Teresa Stahl, Professional ohasse@deloitte.de or tstahl@deloitte.de Tel no. +49 (0) or +49 (0)
8 The Netherlands WBSO and RDA 2015 In September, it is announced that the Tax Plan 2015 includes the continuation for Promoting Research and Development Act (WBSO) and the Research and Development Allowance (RDA). The WBSO percentages for 2015 are similar to those of 2014: the tax rebate for R&D 2015 amounts to 794 million. The RDA rate will also remain at 60%: the tax deduction of all costs and expenses directly attributable to R&D amounts to 238 million. Fiscal tools and incentives to stimulate the pursuit of R&D by companies in the Netherlands: the wages costs through the WBSO and remaining R&D costs and expenses through the RDA. WBSO and RDA do not apply to universities and knowledge centers. Annually, three applications for an R&D declaration may be filed for a period of 3 to 12 months per application. Kees Tuinenbreijer, Senior Manager ktuinenbreijer@deloitte.nl Tel no
9 Poland Patent Plus Program aimed at financial support of scientific entities and SMEs in the process of applying for European and international patent protection of one or more inventions. Moreover, the aid can be used to cover the costs of preparation of economic and technical analyses and invention commercialization strategies. The support can only be granted for applying for patent protection on a scale larger than Poland. The maximum grant value is PLN 800,000 (ca. 190,000). Fund allocation for the current call is PLN 10 million (ca. 2.4 million) Cash grant 5 November 2014 Magdalena Burnat-Mikosz, Partner mburnatmikosz@deloittece.com Tel no. +48 (0) or mobile : +48 (0)
10 Portugal Autonomous Region of the Azores Incentive scheme for the promotion of the export base The promotion of the export base incentive scheme is intended to stimulate the widening of the regional economy s export base, fostering investment projects directed towards external markets, in agrifood, marine economy, manufacturing industries, tourism, digital economy, creative industries, logistics, or other activities which result in the production of tradable goods and services. No overall budget published Non repayable cash grant from 30% to 40% (depending on the island where the investment is made) of the eligible expenses, increased by a repayable cash grant of 25%. Not available Sérgio Paulo Oliveira, Partner seoliveira@deloitte.pt Tel no
11 Portugal Autonomous Region of the Azores Incentive scheme for local development The local development incentive scheme is intended to support investment projects aimed at modernizing existing establishments, fostering internal market and the expansion of regional businesses production. No overall budget published Non repayable cash grant from 15% to 50% (depending on the investment amount and the island where it is made) of the eligible expenses, which may be increased, in determined circumstances, by a repayable cash grant of 25%. Not available Sérgio Paulo Oliveira, Partner seoliveira@deloitte.pt Tel no
12 Portugal Autonomous Region of the Azores Incentive scheme for qualification and innovation The qualification and innovation incentive scheme is intended to promote innovation in regional companies through the production of new or improved goods and services, new production methods, organizational models or marketing strategies, which increase the ability of regional businesses for creating added value, and the strengthening of the outer-market focus. No overall budget published Non repayable cash grant of 50% of the eligible expenses Not available Sérgio Paulo Oliveira, Partner Tel no
13 Portugal Autonomous Region of the Azores Incentive scheme for business efficiency The business efficiency incentive scheme is intended to promote the competitiveness of regional businesses, as a whole or on a specific sector or group of sectors, fostering projects for collective actions of business efficiency, or clustering. No overall budget published Tel no. Non repayable cash grant of 85% of the eligible expenses Not available Sérgio Paulo Oliveira, Partner seoliveira@deloitte.pt
14 Portugal Autonomous Region of the Azores Incentive scheme for integrated and sustainable urbanism The business efficiency incentive scheme is intended to revitalize businesses in urban pre-determined areas, through an integrated strategy, based on the cooperation between companies, business associations and municipalities. Tel no. No overall budget published. Non repayable cash grant from 55% to 65% (depending on the island where the investment is made) of the eligible expenses Not available Sérgio Paulo Oliveira, Partner
15 Thailand Board of Investment (BOI) draft Five-Year Investment Promotion Strategy The new strategic direction of the BOI is to: Prioritize investment promotion for 10 main industries e.g., basic infrastructure and logistics, automotive and other transport equipment etc. Grant merit-based incentives instead of sector-based Abolish zone-based incentives and focus on industrial clusters Enhance facilitation through non-tax incentives; Promote investment, inbound and outbound; and Set clear KPIs to evaluate the benefit and cost-effectiveness of investment promotion Tel no. N/A (for BOI promoted projects, generally, require a minimum of THB1 million investment, excluding land and cost of working capital, subject to the new policy to be announced. Tax (e.g. CIT and import duty exemption etc.) and non-tax incentives (e.g. land ownership, work permits etc.) The new investment strategy will tentatively come into effect in Applications submitted this year will receive incentives according to the existing policy. Cameron McCullough (Legal Partner) or Poljun Divari (Legal Director) camccullough@deloitte.com or pdivari@deloitte.com +66 (0) Ext or Ext
16 Global grants and incentives workshop On November 14, 2014, the Deloitte global network of R&D and Government Incentive experts is gathering in Rome. This series of private company workshops is focusing specific countries or topics of interest to help determine how incentives can help drive business value. Meeting with Deloitte country specialists can provide you with opportunities to gain a greater understanding of the available incentives, the environment in which they are offered, and their relevance to your business. There are a few spots remaining and attendance is free of charge. If you are interested and would like more information, please contact Alistair Davies or your regular Deloitte contact. Alistair Davies Director, Deloitte UK aldavies@deloitte.co.uk
17 For more information For more information on any of the programs listed above, please contact the in-country representative or your usual contact. For further information on how Deloitte can assist with available grants and incentives please contact: Natan Aronshtam Global Managing Director R&D and GI, DTTL Mick Kane National Service Line Leader R&D and GI, Deloitte U.S About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see for a detailed description of DTTL and its member firms. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication. Copyright 2014 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited.
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