R&D DIAGNOSTICS - VŠĮ Intechcentras

R&D DIAGNOSTICS, CLASSIFICATION OF ACTIVITIES AND COSTS

Research and experimental development (R&D) is, by definition, systematic creative work aimed at deepening knowledge and applying that knowledge to develop new ways of using it. R&D activities are carried out in a wide variety of sectors—ranging from agriculture to information technology. As a center of excellence in smart manufacturing, Intechcentras specializes in diagnosing and preparing applications for the classification of R&D activities in the industrial sector.

Although R&D also encompasses fundamental scientific research, our R&D diagnostics apply to the remaining two areas of activity: applied research, which is conducted to gain new knowledge and is aimed at achieving specific practical goals or solving specific problems, and experimental development. Experimental development is the know-how of a company’s employees, i.e., activities based on accumulated knowledge, where engineers and other professionals, drawing on their experience, create new materials, products, and equipment; implement new processes, systems, and services; or substantially improve those already created or implemented.

If a company’s business development or product development department has been carrying out its work for many years without considering whether its activities deepen knowledge or lead to new applications, a diagnostic assessment would be the most appropriate method for identifying activities that can be classified as R&D.

If the company knows exactly which project they are applying for applied research and experimental development, we provide a service to prepare the application for the Innovation Agency.

Finally, in the last stage, once the agency recognizes the activities as meeting R&D criteria, Intechcentras helps allocate costs to R&D expenses, thereby managing the financial aspects and justifying the tax incentive.

ACTIVITY DIAGNOSTICS AND CLASSIFICATION AS R&D

Identification of R&D activities. Activities meeting R&D criteria are selected.
Preparation and submission of an application to the Innovation Agency. The application, in accordance with applicable laws, describes and justifies the compliance of the company’s activities with R&D criteria.

FINANCIAL CONSULTING AND DOCUMENTATION FOR TAX INCENTIVES

We classify expenses incurred in the implementation of R&D activities (salaries, social security contributions, business trips, raw materials, supplies, purchased services, current assets, etc.) as R&D costs. By classifying the costs of projects implemented by the company as R&D activities and preparing the necessary R&D documentation, taxable income is reduced. By identifying and classifying R&D costs, and subsequently deducting R&D costs from revenue, taxable income can be reduced threefold. The service includes:

Analysis of incurred expenses and their classification as R&D costs

Preparation of documentation for the recognition of R&D costs

Preparation of documentation to claim the income tax credit

The R&D tax credit and its application are described in the Income Tax Act. Its essence lies in the deduction of costs related to the creation and substantial improvement of new products, services, and/or technologies from the company’s income. This can be done three times. The relief may also apply to costs incurred in the past: this allows for the recovery of a portion of the income tax paid in previous years.

R&D DIAGNOSTICS, CLASSIFICATION OF ACTIVITIES AND COSTS

ACTIVITY DIAGNOSTICS AND CLASSIFICATION AS R&D

FINANCIAL CONSULTING AND DOCUMENTATION FOR TAX INCENTIVES

Analysis of incurred expenses and their classification as R&D costs

Preparation of documentation for the recognition of R&D costs

Preparation of documentation to claim the income tax credit

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