Partial Withholding Tax Exemption for R&D

Partial Exemption of Withholding Tax

Companies can benefit from a partial exemption of 80% of withholding tax paid on the wages of scientific researchers. The definition of R&D is in line with the OECD Frascati Manual and encompasses fundamental research, industrial research and experimental development. Qualifying companies also include companies that have partnership agreements with specific European institutions and Young Innovative Companies. Claiming the withholding tax exemption requires pre-approval from the Federal Science Department. New R&D projects have to be registered by a notification procedure.