The Czech Republic has an R&D scheme providing a 19% deduction on eligible R&D costs in addition to allowing 100% of eligible costs to be deducted from the income base. A further deduction of 110% is also available on any incremental increases in annual R&D expenses.
Although no pre-approval is required, internal pre-registration of an R&D project is required at company level before an R&D project starts. Full technical and financial supporting documentation is strongly advised.
Although the application process seems relatively easy, the regulatory authorities look for minor discrepancies in the claim justification, which can result in the refusal of an R&D deduction.