Research and development and government incentives

Many countries offer generous grants, credits and incentives in areas such as the digital economy, energy efficiency, environment, globalization, innovation, sustainability and training. More than 30 countries also offer specific research and development (R and D) tax incentives that apply to development activities related to manufacturing process improvements, production trials and software integration issues in addition to laboratory research. Businesses that understand what is available and the requirements for qualification can obtain significant operational and fiscal benefits.

Research and development claims preparation

Identifying eligible R and 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.

To deliver  R and D and government incentives services Deloitte has an Incentives Insight methodology. This is powered by I Smart technology, streamlining and accelerating the gathering and processing of data and information needed to make informed business decisions regarding credits and incentives claims.

Assisting our clients at maximizing their opportunities for various incentives in Israel and abroad for the leverage of the research and development and realizing their business potential, through the following tools:

  • The Capital Investment Encouragement Law – submitting applications for the pre-approval of the Israeli Tax Authorities with respect to the benefited /preferred enterprise status
  • Apply for grants from the Chief Scientist and the Industry, trade  and labor ministry for research and development activities, energetic efficiency and marketing activities.
  • Accompanying companies through out all the stages of receiving grants from international resources , including locating funding resources, locating potential partners, preparing and submitting research proposals
  • Assistance at receiving the R&D company status for the purpose of issuance of stocks, or receiving benefits through the Capital Investment Encouragement Law.
  • Accompanying companies entitled to reimbursements due to national security events

Tax controversy related to R and D or government incentives

R and D claims and Government Incentive applications often receive intense regulatory scrutiny. Deloitte provides assistance in resolution of any such audits as well as support related to claims and information requests or objections from relevant government bodies. Our teams include former officials with various regulatory agencies who have an in depth understanding of the regulatory processes.