2015 Global Survey of R&D Incentives, country flags

Analysis

Refundable research tax credits

Summary of key criteria

The below countries in the 2015 Global Survey of R&D Incentives Survey, all offer refundable research tax credits.

Country Explanation
Australia

SMEs are eligible for a refundable tax credit of 45 percent of qualified research expenses (QREs), but QREs are not deductible. SMEs are entities with gross receipts of less than AUD 20M that are not more than 50% controlled by exempt entities.

Austria

A refundable 12 percent volume based tax credit is available for all taxpayers to the extent the credit exceeds the amount of the company’s tax liabilities (10 percent for fiscal years commencing before 1 January 2016).

Belgium

Excess tax deductions may be converted into a tax credit refundable after five years if not utilized.

Canada

35 percent federal ITCs for small Canadian-controlled private corporations (CCPCs) on up to CAD 3M of qualified expenditure per year. This limit applies to all corporations in an associated group. The corporate group of companies must have less than CAD 800K of taxable income and less than CAD 50M in taxable capital employed in Canada (TCEC) to qualify for the refundable ITCs. These caps are based on the prior year.

France

If research tax credits are not utilized within three years, the taxpayer receives a refund for the unutilized credit.
Research credits are refundable for SMEs, new companies, young innovative companies and companies facing financial issues.

Ireland

Unused credits may be carried back one accounting period and carried forward indefinitely. If there are unutilized credits after the carryback, the taxpayer may apply for a refund (payable over three years), subject to certain limitations and caps.

Singapore

There is an option to convert up to SGD 100K of tax deductions into a non-taxable cash grant for each qualifying tax year from 2013 to 2018 at the rate of 60 percent (i.e., SGD 60K).

Spain

The requirements that must be met to qualify for refundable credits limit opportunities for refunds.

United Kingdom

Cash credits are available for SMEs in a loss position, up to 33.35 percent of qualified expenditure. Large companies can elect to claim a taxable credit of 10 percent, increased to 11 percent  from 1 April 2015.

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