Global Tax and Legal January Grants & Incentives program updates The latest legislative developments from around the world
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1 Global Tax and Legal January 2016 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. Brazil Germany Israel Poland United Kingdom United States For more information
3 Brazil R&D expenses super deduction R&D incentives provide a direct corporate income tax benefit for taxpayers that are engaged in technologically innovative activities. The base level of the benefit is an additional deduction of 60% of qualifying R&D expenditure, which can be increased up to 80% if the company increases the number of researchers dedicated exclusively to R&D projects. Provisional Measure 694/2015, published on 30 September 2015, originally proposed the suspension of R&D incentives (which were established by Law 11,196/2005) for calendar year However, the new measure was not converted into law during calendar year 2015, so the suspension now will not come into effect until 1 January 2017, and then only if PM 694/2015 is converted into law by 8 March Tax incentive R&D Deadline N/A Flavia Crosara: Partner flaviacrosara@deloitte.com Tel no
4 Germany medicine, biotechnology, measurement technology, sensors Photonics system solutions for medicine and biotechnology This R&D scheme targets the development of robust photonics system solutions for medical applications and biotechnology: Photonic procedures for application in biotechnology and for medical prediction, prevention, diagnosis and therapy (e.g. functional imaging processes, intelligent bio-photonics for data mining on a real-time basis) Photonic procedures for medical boundary surfaces (e.g. sterilization and decontamination of boundary surfaces) The program aims, in particular, at photonics system solutions allowing for a rapid application in practice (e.g. patient-oriented diagnostics/ in-vitro diagnostics ) No overall budget published For companies, grants of up to 50% of eligible costs can be awarded, provided there is an own contribution of at least 50%; the funding ratio for SMEs may be higher For universities and research institutions, grants of up to 100% of eligible costs can be awarded Funding period of up to three years Non-repayable cash grant to a consortium Deadline Submission of project outline: 31 March 2016 Isabel Antholz: Senior Manager or Teresa Stahl: Consultant iantholz@deloitte.de or tstahl@deloitte.de Tel no. +49 (0) or +49 (0)
5 Germany manufacturing, e-mobility, automotive Flexible production technologies for electric propulsion The scheme focuses on new or further development of production processes for electric propulsion systems: New winding technology ready for high-volume production Improvement of the production process for integrated power electronics, including automotive specific bonding methods ready for high-volume production New automated assembly concepts for mechatronic all-in-one systems New automated measuring and testing technologies No overall budget published For companies, grants of up to 50% of eligible costs can be awarded, provided there is an own contribution of at least 50%; the funding ratio for SMEs may be higher For universities and research institutions, grants of up to 100% of eligible costs can be awarded Funding period of up to three years Non-repayable cash grant to a consortium Deadline Submission of project outline: 31 March 2016 Isabel Antholz: Senior Manager or Teresa Stahl: Consultant iantholz@deloitte.de or tstahl@deloitte.de Tel no. +49 (0) or +49 (0)
6 Germany medical technology, ICT, sensor technology Interactive wearable medical technology Funding will be available for research projects in the following areas: Innovative, smart and connected wearable medical technology that can read vital data and be connected with other technologies via sensors; New concepts improving the application security and practical use of such medical technology to increase the usability for patients and caretakers; Innovative new concepts focusing on mining vital data and the visualization of such data, including innovative user interfaces for patients and caretakers No overall budget published For companies, grants of up to 50% of eligible costs can be awarded For universities and research institutions, grants of up to 100% of eligible costs can be awarded Funding period of up to three years Non-repayable cash grant to a consortium Deadline Submission of project outline: 6 April 2016 Isabel Antholz: Senior Manager or Teresa Stahl: Consultant iantholz@deloitte.de or tstahl@deloitte.de Tel no. +49 (0) or +49 (0)
7 Israel bilateral innovation projects with China Fourth call for proposals A collaborative project involving at least one science and technology company from Israel and one from China may be able to secure funding for R&D activities aimed at developing a new product or new process. The joint industrial R&D project should aim at the development of cutting-edge innovation products and processes leading to commercialization in the global market. No overall budget Grants of up to 50% of the approved R&D project expenses are available to the partner companies, in addition to other regional incentives. Whether or not the grant is conditional, which would require that it be repaid, in whole or in part if the project results in actual commercial sales, is determined in accordance with the rules of the two countries. For Israeli companies, royalty payments ranging from 3% to 5% of sales are required until the funding granted has been repaid. Deadline Bilateral form (first stage): 15 March 2016 Nadav Gil: Partner or Tamar Weinberg: Senior ngil@deloitte.co.il or tweinberg@deloitte.co.il Tel no
8 Israel Bilateral innovation projects with Hong Kong R&D cooperation program A collaborative project involving at least one science and technology company from Israel and one from Hong Kong may be able to secure funding for R&D activities aimed at developing a new product or new process. The joint industrial R&D project should aim at the development of cutting-edge innovation products and processes leading to commercialization in the global market. Deadline No overall budget Grants of up to 50% of the approved R&D project expenses are available to the partner companies in addition to other regional incentives. Whether or not the grant is conditional, which would require that it be repaid in whole or in part if the project results in actual commercial sales, will be determined in accordance with the rules of each jurisdiction. For Israeli companies, royalty payments ranging from 3% to 5% of sales are required until the funding granted has been repaid. Applications can be submitted year-round Nadav Gil: Partner or Tamar Weinberg: Senior ngil@deloitte.co.il or tweinberg@delitte.co.il Tel no or
9 Poland/Chemical sector INNOCHEM (Measure 1.2 of the Smart Growth Operational Program) Administered by the National Center for Research and Development (NCR&D), this program supports industrial research or experimental development carried out by enterprises or consortiums of enterprises, consisting of at least two entrepreneurs, aimed at the production of basic products in the chemical industry (e.g. refined petroleum products, additives for fuels and mineral oils, fertilizers, plastics). To benefit, a project must fall within the scope of one of the R&D&I funding priorities in the National Smart Specialization and must include R&D activities related to one of the following: sourcing raw materials, production of basic products or production of specialized products or new technologies. Costs that are eligible for a grant include remuneration and outsourcing costs (up to 50% in the latter case), depreciation and leasing costs for R&D infrastructure and equipment, costs incurred on intangible assets, land and buildings, other operational costs and up to 17% of indirect costs. The enterprise must incur at least EUR 250,000 and a maximum of EUR 5 million in qualifying costs. The project implementation period cannot exceed three years. EUR 30 million for current call for proposals The grant available as a percentage of eligible costs is as follows: Industrial research: Up to 70% for micro and small enterprises, 60% for medium-sized enterprises and 50% for large enterprises Experimental development: Up to 45% for micro and small enterprises, 35% for medium-sized enterprises and 25% for large enterprises If the results of the R&D results or effective collaboration are broadly disseminated, the percentages can be increased by 15%, up to an overall maximum of 80% of the costs. Deadline 1 March 2016 Dominika Orzolek: Manager dorzolek@deloittece.com Tel no or
10 United Kingdom/EU Support for the development of European video games Grant funding is available for activities relating to the development phase of narrative storytelling video games, regardless of platform or expected distribution method. In all cases, the video game must be intended for commercial exploitation. This call for proposals is aimed at European video game production companies that have been legally constituted for at least 12 months before the submission date and that can demonstrate a recent success. The maximum duration of individual projects is 30 months from the date of submission. EUR 2.6 million. Grants of EUR 10,000 to EUR 150,000 are available to fund up to 50% of total project costs for the concept and project development of a European video game (activities to the point that the concept leads to a playable prototype or trial version). Cash grant Deadline 3 March 2016 Steve Conibear: Senior Manager stconibear@deloitte.co.uk Tel no
11 United States Research tax credit On 18 December 2015, US President Obama signed into law legislation that affects the research tax credits. The legislation makes the research tax credit a permanent part of the Internal Revenue Code, ending the temporary status of this provision that has endured for 34 years. The law also enhances the availability of research credits for small businesses by allowing the tax credit, for the first time, to be applied against alternative minimum taxes and payroll taxes. Incremental federal research tax credits, with an effective rate ranging from 6.5% to 9.1% (depending on the elected credit). Special research credits also are available for clinical studies of orphan drugs (17.5% credit effective rate) and for energy research through consortia (13%). R&D Deadline N/A Michael Goldbas: Principal mgoldbas@deloitte.com Tel no
12 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 David Cobb Partner, R&D and Government Incentives, Deloitte UK 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 more detailed description of DTTL and its member firms. This communication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms, and their related entities (collectively, the Deloitte Network ). None of the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication For information, contact Deloitte Touche Tohmatsu Limited.
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