Research and Development

How can we help?

Many countries encourage innovations in business and have enacted laws providing tax incentives for companies carrying out scientific research and experimental development (R&D) activities. 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. Currently, costs attributed to R&D activities in Lithuania (except costs for the depreciation of non-current tangible assets) can be deducted three times from the revenue of a tax payer during the taxable period in which they are incurred.

Deloitte tax team helps its clients to evaluate which of the carried out activities correspond to the definition of R&D activities provided in legal acts, which costs can be attributed to these activities, and helps to prepare documentation of a R&D project according to requirements provided in legal acts which would allow the company to apply a R&D incentive. In case any uncertainties arise regarding attribution of activities to R&D, we can help businesses prepare an enquiry to the Agency for Science, Innovation and Technology which in turn would provide a solution valid for applying a R&D taxable incentive.