Fiscal Measures

A system of fiscal incentives related to R&D costs provides support to Austrian companies. It grants as a significant tax allowance for their R&D expenditures. The instruments used are the following:
volume-based tax allowances, i.e. a reduction of the assessment base, for a maximum of 25% of the total R&D expenditure or for 'economically valuable' inventions, and for contracted research;
incremental tax allowance for up to 35% for those R&D expenditures that exceed the average of R&D expenditures over the past three years;
a "research premium" of 8% for companies that do not make any profit, i.e. mainly research-intensive start-up companies and other R&D performing companies that do not make a profit.
The total volume of the 'research premium' rose from € 5.4m in 2003 (in its second year) to € 157.4m in 2006. The volume of the tax allowances can only be estimated; according to the Federal Ministry of Finance (BMF), the tax losses amounted to approx. € 250m in 2004.

 For detailed information please visit the website of the Federal Ministry of Economy, Family and Youth BMWFJ.