Companies may claim a Research Premium for expenditure incurred on research and experimental development (R&D). The premium amounts to 14% of eligible R&D expenditure incurred during a financial year.
The Research Premium is credited by the competent tax office to the taxpayer's fiscal account (Abgabenkonto) and is also available to companies that do not report a taxable profit.
How do I apply?
To claim the Research Premium for in-house research and experimental development, an Annual Expert Opinion issued by the Austrian Research Promotion Agency (FFG) is required.
The FFG Annual Expert Opinion may be requested free of charge via FinanzOnline after the end of the relevant financial year.
The application process consists of two steps:
1. Requesting the Expert Opinion
The Expert Opinion for the Research Premium relating to in-house R&D must be requested from the FFG via FinanzOnline (under External Procedures/Links → Research Premium Expert Opinion).
Applicants may create and submit up to 20 R&D projects or R&D focus areas. Each project or focus area must be described under the following headings:
- Objective and content
- Methodology and approach
- Degree of innovation
These descriptions form the basis of the FFG's technical assessment.
2. Submitting the application for the Research Premium
The application for the Research Premium must also be submitted via FinanzOnline to the competent tax office using Form E108c.
Overview of the procedure
The process is as follows:
- The company submits an application for the Research Premium to the competent tax office via FinanzOnline.
- The tax office requests an Annual Expert Opinion from the FFG.
- The FFG prepares the Expert Opinion and transmits it to both the tax office and the company.
- Finally, the tax office either credits the Research Premium to the company's fiscal account or issues a formal decision.
What is assessed?
FFG experts assess whether the activities constitute eligible research and experimental development within the meaning of Section 108c of the Austrian Income Tax Act (Einkommensteuergesetz) and the Research Premium Ordinance (Forschungsprämienverordnung).
In addition, when assessing whether the substantive eligibility requirements for the Research Premium are met, the FFG also applies the principles set out in the OECD Frascati Manual (2015).
Where can I find the completed Expert Opinion?
Once the Expert Opinion has been completed, it is automatically transmitted to the competent tax office.
It is also available to the company via FinanzOnline in its electronic tax file. The company is notified by e-mail once the Expert Opinion has been completed.
When is the Research Premium paid?
The Expert Opinion is subject to the tax office's independent assessment of the evidence. The tax office alone decides whether the Research Premium is granted.
Once the Expert Opinion has been completed, the FFG's role in the process is concluded. All subsequent steps relating to the assessment, approval and payment of the Research Premium are the responsibility of the competent tax office.
Eligible applicants
The Research Premium is open to all fields of research and technology and may be claimed by:
- large enterprises;
- small and medium-sized enterprises (SMEs);
- start-ups;
- individual researchers; and
- any other taxpayer meeting the statutory requirements.