Research and development and government incentives
Many countries offer generous grants, credits and incentives in areas such as the digital economy, energy efficiency, environment, globalisation, innovation, sustainability and training. More than 30 countries also offer specific research and development (R&D) tax incentives that apply to development activities related to manufacturing process improvements, production trials and software integration issues in addition to laboratory research.
Taking advantage of incentives creates an immediate cash benefit, often reducing effective tax rates and increasing EPS. During these turbulent times of economic crisis, it is important to benefit from the various grants and incentives programmes available to R&D performing organisations in the Netherlands. The European Union deploys several such funding programmes in which Dutch organisations can take part, a.o. Horizon 2020 which will contribute 70 billions EUR funding for R&D activities during the next 6 years. Participation enables the funding of R&D and demonstration activities taking place within specific projects, most of which are performed within a consortium of industrial and academic partners. Participation benefits are numerous and could include: a reduction of operating expenditure; risk management in the development of new technologies for future products; access to new markets; and the development of long term business relations with customers, suppliers and technological partners.
Research and development claims preparation
Identifying eligible R&D activities and preparing robust supporting documentation is often unfamiliar territory for businesses who may not have the resources needed to complete the paperwork required to file a claim. Deloitte can assist with the whole process from scoping through document preparation and submission. Deloitte combines deep tax technical expertise with highly experienced scientists and engineers so that the multiple aspects of an incentive claim are understood and considered. We utilize technology based solutions worldwide to create a smooth process with increased transparency and to facilitate compliance with regulatory changes.
Furthermore the unique characteristics of the R&D Government and Incentives team and its related global Deloitte network offers distinctive benefits for the Deloitte clients:
- we have a global network;
- we focus on all types of incentives, such as fiscal incentives, cash grants;
- we have technology to identify partnership opportunities;
- we have technology to provide oversight and support incentives processes;
- we give insight in all kinds of relevant cross-border opportunities;
- we have seen it all and share our best practices.
Beside client benefits, significant opportunities for Deloitte arise since the activities of the R&D and Government Incentive team offers:
- New, distinctive business, which is not easy to be matched by the competition
- We can be used as door opener (we directly bring in money) to deliver the firm
- We can be used as add-on (differentiator in comparison to competition)
- We can be used as a commercial instrument (e.g. parts of consulting fees can be recovered by incentives)
Government incentives application support
To take advantage of the grants, credits and incentives available to a business requires time and effort. Deloitte’s R&D and Government Incentives teams are highly experienced in the practicalities of preparing, negotiating and agreeing such applications from initial feasibility reviews to document submission. Deloitte's knowledge and experience in this specialised area provides clients with the confidence of knowing that the incentives which can impact their cost of business have been considered and evaluated.
Deloitte delivers R&D and government incentives services using the Incentives Insight methodology. It is powered by I Smart technology , streamlining and accelerating the gathering and processing of data and information needed to make informed business decisions.