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Global investment and innovation incentives updates: February 2020

Global developments benefiting business

This monthly publication provides a summary and updates on the latest global developments in research and development (R&D) credits, grants, and other incentive arrangements. More than 50 countries offer specific incentives, and this newsletter focuses on identifying and outlining what could be the right incentives for your organization.

Czech Republic

Cash grants for energy savings in heat supply systems (HSS) 

Call IV under the energy savings in HSS program supports projects focused on the reconstruction and development of heat supply systems and modernization of technological equipment related to the combined production of heat and electricity. Eligible applicants are small, medium-sized, and large enterprises. Cash grants equal to 50 percent of qualifying costs for small entities, 45 percent for medium-sized entities, and 40 percent for large entities are available in amounts ranging from CZK 500,000 to CZK 200 million.

Scheme budget CZK 400 million (EUR 16 million)
Type of incentive Cash grant
Deadline 14 December, 2020

Cash grants for energy savings relating to photovoltaic systems with or without accumulation for own use

Call III under the energy savings program supports projects aimed at the reduction of energy consumption by installing photovoltaic systems (with or without systems for accumulation for use by the enterprise). Eligible applicants include small, medium-sized, and large enterprises. Cash grants equal to 80 percent of qualifying costs for small entities, 70 percent for medium-sized entities, and 60 percent for large entities are available in amounts ranging from CZK 2 million to CZK 50 million.

Scheme budget CZK 500 million (EUR 20 million)
Type of incentive Cash grant
Deadline 31 August, 2020

Contact your Czech Republic representative

Luděk Hanáček,
+420 60 665 4304


Incentive offered for energy efficiency in industry

The energy efficiency in industry funding scheme aims at encouraging investments to modernize industrial systems and processes to reduce their overall energy consumption. Funding is provided for investment costs attributable to energy savings by:

  • Highly efficient machines and equipment, such as electric actuators, pumps for industrial use, compressed air generators, and insulation of industrial systems
  • Process heat generation from renewable sources
  • Enhancement of enterprise energy management systems by measuring, control, and sensor equipment and/or energy management software
  • Overall optimization of facilities and processes
Eligible participants Commercial enterprises, municipal enterprises, freelancers, and contractors servicing eligible enterprises established in Germany 
Scheme budget • Highly efficient machines and equipment:
Up to 40 percent of eligible costs (maximum of EUR 200,000)

• Process heat from renewable sources:
Up to 55 percent of eligible costs (maximum of EUR 10 million)

• Measuring, control, and sensor technology and energy management software: Up to 40 percent of eligible costs (maximum EUR 10 million)

• Overall process optimization: Up to 40 percent of eligible costs (maximum of EUR 10 million)
Type of incentive Nonrefundable cash grant or loan with repayment bonus
Deadlines Proposal submission possible at any time through 31 December, 2022

Cash grants for applied research on bio-based adhesives

This funding scheme promotes application-oriented research projects in the field of bio-based adhesives that aim to replace raw materials with renewable or recyclable resources. These bio-based adhesives are expected to provide new or improved characteristics and functions. Funding also is provided for innovations regarding the adoption of industrial processes to utilize bio-based raw materials.

Only collaborative projects will be eligible for funding.

Eligible participants Commercial enterprises, universities, and research institutions established in Germany 
Scheme budget • Up to 50 percent of eligible costs for industrial research

• Up to 25 percent of eligible costs for experimental development

• Additional 15 percent for consortia involving SME(s)

• SMEs are eligible for an additional bonus
Type of incentive Nonrefundable cash grant
Deadlines 15 June, 2020

Contact your German representative

Dr. Sebastian Lange,
service line leader
+49 151 1829 3720


Clawback reduction for pharmaceuticals that carry out R&D and/or investments 

A ministerial decision issued on 24 January, 2020, sets out the circumstances in which a pharmaceutical expenditure clawback may be offset with research and development (R&D) expenses and certain investment expenses.

Under the clawback rules—which are designed to control public spending on drugs—pharmaceutical companies are required to return funds to the Greek government when public spending on drugs exceeds the amount the government budgeted for this expense. A 2019 law allows “marketing authorization holders” for pharmaceuticals and pharmaceutical companies to offset their pharmaceutical expenditure clawback. Provided certain requirements are met, the offsets may be made with annual expenditure corresponding to:

  • R&D costs, including clinical trials expenditure, that are directly related to specific targeting and reasoning R&D activities
  • Investment plans for the development of products, services, or production lines
Scheme budget For tax year 2019, the available clawback reduction is EUR 50 million (50 percent for R&D expenditure and 50 percent for investment expenditure) 
Type of incentive Reduction of clawback
Deadline Clawback reduction requests are submitted after the end of the tax year and within the first four months of the following calendar year

Contact your Greek representative

Stylianos Sbyrakis,
+30 21 0678 1196


Updates on tax allowance facility

The Indonesian government released new regulations on 13 November, 2019, that make several changes to the tax allowance facility granted to companies for certain types of investments or investment in specific regions. The changes apply as from 13 December, 2019.

The tax allowance is available to domestic corporate taxpayers whose primary activity is investment in new businesses or the expansion of existing businesses. The main benefits under the facility include a reduction in net taxable income of up to 30 percent of the amount invested in the form of fixed assets; accelerated depreciation and amortization of tangible and intangible assets, respectively; the ability to carry forward losses for up to 10 years, rather than the normal five year carryforward; and a 10 percent withholding tax on dividends (or lower rate under an applicable tax treaty) instead of the normal 20 percent rate.

The regulations include the following changes:

  • New rules are introduced to qualify for the incentive,
  • The sectors that are eligible for the incentive are broadened. For example, sectors, such as oil and gas refining and processing, can qualify for the tax allowance, regardless of where the investment is located,
  • Tangible assets include land,
  • New requirements apply for the accelerated depreciation of fixed assets, and
  • Modifications are made to product coverage.
Scheme budget N/A
Type of incentive Various tax benefits
Deadline The regulation will be evaluated within two years after 12 November, 2019

Contact your Indonesian representative

Roy Sidharta Tedja,
tax partner
+62 21 5081 8809

Isabella Saragih,
tax senior manager
+62 21 5081 8913


Cash grants under “entrepreneur development and innovation" program—Norwegian Financial Mechanism 2014-2021

The entrepreneur development and innovation program, administered by Poland’s Agency for Enterprise Development, supports the development, implementation, and commercialization of innovative technologies, solutions, processes, and products. The program, which offers cash grants to eligible micro, small, and medium-sized enterprises, is available in three areas:

  • Environmentally friendly technologies (green industry innovation),
  • Innovations relating to sea and inland waters (blue growth), and
  • Technology that improves quality of life (welfare technologies).

This program is supported by the Norwegian Financial Mechanism 2014-2021 initiative, a program available to EU member states in central and southern Europe and the Baltic countries. The program is designed to reduce economic and social disparities and enhance bilateral relations between Norway and the beneficiary country. Participation with Norwegian entities depends on the particular call.

Scheme budget General call for proposals: About EUR 79 million

Call for proposals for:

• Green industry—EUR 50 million

• Blue growth—EUR 10 million

• Welfare technologies—EUR 18.7 million
Type of incentive Cash grant that can be used for the following:

– Investment expenditure for construction and materials, tangible and intangible assets, and real estate leases/purchases of real estate: From 20 percent to 70 percent of expenditure, depending on the location of the project and the size of the enterprise (based on the regional aid map)

– Development work: From 35 percent to 45 percent, depending on the size of the enterprise, and

– Consulting services: Up to 50 percent,

The minimum level of funding is EUR 200,000
Deadline 31 March, 2020
Additional information Participation of Norwegian entities is optional, but such projects will be awarded additional points during the assessment phase

Contact your Poland representative

Dominika Alicka,
senior manager
+48 881 95 0969


Incentives granted for globalization of SMEs 

Incentives are available for SMEs undertaking projects to increase their capacity and presence in the global market. Cash grants are available for eligible costs, such as expenses incurred to obtain knowledge of markets, international development, promotion, presence in global markets, and international marketing. Projects must fall within one of the following areas:

  • E-commerce and digital transformation,
  • Market diversification (in particular, relating to Brexit), and
  • Export accelerators.
Scheme budget EUR 55.5 million
Type of incentive Nonrepayable cash grant of up to 45 percent of eligible costs (40 percent for projects in the Lisbon region)
Deadline • E-commerce and digital transformation projects: 30 March, 2020

• Market diversification projects: 27 April, 2020

• Export accelerator projects: 25 May, 2020

Contact your Portuguese representative

Sérgio Oliveira,
+351 21 042 7527

For more information

For more information on any of the programs listed above, please contact the in-country representative or your usual contact.

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Global investment and innovation incentives updates: Global developments affecting research and development

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