Article

Research and development survey

Tax and grant support of research and development activities

Every year, Deloitte performs a survey among companies focusing on the area of research and development. Its objective is to obtain the aggregate results concerning research and development in the Central European region, including an estimate of future trends. Another objective is to perform an analysis of the primary obstacles in the application of tax deduction and the use of research and development grants. The involvement of the Czech Republic in this Central European Survey on the one hand allows local companies to compare themselves with other countries in the region and on the other hand it allows state authorities and institutions responsible for research and development support to obtain impulses for the future direction of the support system.

Survey results in the Czech Republic – October 2018

Almost a third of the companies said that they had invested more than 10% of their revenues in research and development in 2017. Only 2% of the respondent companies did not incur any research and development expenses. The decisions of companies to invest in research and development are most commonly affected by the following factors: the availability of qualified and experienced workers (66%), the possibility to use multiple types of support (58%) and the stability and transparency of the regulatory environment (54%). 59% of the companies saw the biggest problem of the current research and development support system in the uncertainty of the assessment of grants or tax deductions. Compared to last year’s survey (39%), the level of uncertainty has grown significantly.

Survey results in the Czech Republic – October 2018

Survey results in the Czech Republic – 4th edition (September 2016)

More than 80% of companies in the Czech Republic plan to spend more on research and development this year (45%), or the same amount as last year (36%). They would invest a higher sum within two years if they could use various types of financial support (58%), or if they had access to more qualified and experienced employees (65%). There still remains a shortage of such employees on the Czech market.

Survey results in the Czech Republic – 4th edition (September 2016)

Survey results in the Czech Republic – 3rd edition (November 2015)

The biggest problem in the current research and development support system is the uncertainty of the assessment of grants or tax deductions by tax or other authorities. This was the consensus of a third of the respondent companies that participated in the third survey organised by Deloitte and the Technology Agency of the Czech Republic (TA CR) that took place in the first half of this year. Other frequently mentioned problems included unclear implementation instructions for the conditions of cost eligibility including the method of their calculation, this was indicated by 21% of the respondents.

Survey results in the Czech Republic – 3rd edition (November 2015)

Survey results in the Czech Republic – 2nd edition (September 2014)

Almost half (48%) of Czech companies want to increase their research and development investments in the next 3 – 5 years. A third of the companies (34%) believe that the biggest problem in the current research and development support system are the unclear implementation instructions for the conditions of cost eligibility including the method of their calculation, more than a quarter of the companies (28%) listed tax uncertainty in the assessment of grants or tax deductions by tax or other authorities, and a quarter (25%) indicated the identification of activities that meet the conditions of research and development for application in grants or tax deductions. These are the results of the survey performed by Deloitte in cooperation with the Technology Agency of the Czech Republic (TA CR) during May and June 2014 using a sample of more than 60 companies from the Czech Republic.

Survey results in the Czech Republic – 2nd edition (September 2014)

Survey results in the Czech Republic – 1st edition (September 2013)

In the Central European survey performed by Deloitte among more than 230 companies from the Czech Republic, Croatia, Poland, Slovakia and Hungary, more than three quarters of the respondents (78%) said that they would maintain or increase their research and development expenses in the following years compared to 2012. In the Czech Republic, a total of 88% of the respondent companies plan to maintain or increase their research and development investments.

Survey results in the Czech Republic – 1st edition (September 2013)